Binary options trading Binary options are a form of bet where you try to predict the outcome of events in financial markets. The use of the word ‘binary’ refers to the fact that there can only be two outcomes to the bet. Unlike other forms of gambling, those offering binary options do not have to be licensed by us – they are authorised is binary option trading legal in the us the Financial Conduct Authority. Changes to the regulation of binary options From 3 January 2018 UK firms offering binary options must be authorised by the FCA.
However, those protections will not compensate you for any losses from trading. You should still be careful and consider whether the products are right for you. The risk from unlicensed operators There is a risk that arrangements which resemble binary options betting or other financial investments could be scams. There are no guaranteed get-rich quick schemes. Beware of cold-calling If you have not requested contact you should not give them any personal information. Beware false claims about who regulates an operator Businesses offering binary options that have remote gambling equipment in Great Britain need to be licensed by us and are required to display this on their website. Businesses that are not regulated by us may be licensed in other reputable jurisdictions, most of whom will have similar online registers.
You should check before registering an account. If the company is unlicensed, consider carefully whether to use them An unlicensed company may be acting illegally. They will not be required to abide by any code of conduct and there is no incentive for them to deal fairly with you. It is easier for unlicensed companies to use false names, addresses and contact numbers and to disappear with your money. Also keep in mind that, just because a business is registered with Companies House, this does not necessarily mean the business itself is operating legally. Companies House is not regulator and does not verify the legitimacy of company operations.