Written by: Jake Bailey
Online Trading Pro
Staff Expert

Binary Options Trading UK

United Kingdom Brokers

Binary options trading in the UK has become very popular in recent times. In some countries like the US this type of trading is regulated but as yet the UK has not introduced the same kind of rules. Now whilst this makes it easy for many to trade without restriction it does bring with it other threats and issues and a need to be careful when choosing a broker.

For those looking to invest in the EU it is important to check that your broker is at least regulated by the Cyprus Securities and Exchanges Commission (CySEC). This is the ultimate protection that can be achieved by brokers serving the UK market until such a time when local regulations are introduced. With a good broker binary trading can be financially rewarding and enjoyable.

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We understand the need to feel comfortable and protected when trading online which is why we work to provide transparent and clear recommendations and reviews of the best binary options brokers available. We have selected only the most trusted UK safe brokers to save you both time and effort and make finding a legal broker a simple process.

If you are considering becoming a binary options trader this guide will help you:

  • Understand the regulations and classification of binary brokers in the UK
  • Be aware of any taxes and fees that apply to UK binary options trading
  • Feel confident that your are choosing a great broker that wont rip you off

Our Top Recommended Brokers Updated: January 2018

Your capital may be at risk
Risk Warning: The financial products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.

Local Broker Benefits

When it comes to binary trading, many UK investors prefer to trade options with a locally based broker. If based in the UK, most traders would expect to see an office based in London at a familiar address among all the other financial institutions. Being a small country geographically there is a sense that nothing is too far away in the event of an issue. While there are many reliable and reputable UK brokers there are many international brokers that also have a lot to offer. How do you choose and what do you need to consider when making your choice?

Licensing And Regulation

While UK regulation is well regarded there are also many other hugely reputable licensing bodies. These include CySEC (Cyprus) MiFID (EU) and ASIC (Australia). Often the best brokers originate in Europe or Australia and there are plenty to choose from.

Mobile Trading Tools

Ease of use of the platform and whether it is mobile friendly is a huge consideration. You need to make sure that the platform is compatible with your phone or tablet and that you find it easy to navigate.

Demo Account Features

The demo account is a huge benefit for both new and experienced traders. If you are ne to trading it allows you to get acquainted with the functionality, the various assets and trade types and the various charts, data etc. If you are more familiar with trading, it offers you the opportunity to try new things.

Bonuses And Incentives

Like a demo account, a bonus also gives you the chance to get better at trading. Whether it's a no deposit bonus to get your first trades free or a deposit bonus to make your money go further, they will both save you money.

We have put together a list of recommended brokers based on our experience and knowledge of the UK binary options market. The tireless efforts of our experienced and skilled team will help you to make a more informed decision when it comes to choosing the right broker for you.

Legal And Regulation

Currently there are no specific financial regulations that apply to binary options trading in the United Kingdom. It has been expected for some time that regulation and legislation is imminent and that the United Kingdom would try and align with the rest of the European Union. A decision on this matter was expected in July 2016 but the EU referendum may have changed this and it could be a longer wait than previously expected.

Now it would be reasonable to assume that the government will hand over regulation of brokers to the Financial Conduct Authority (FCA) but until this happens options trading is classed as gambling and comes under the control of the Gambling Commission. Once responsibility for UK binary options brokers is transferred over to the FCA one would expect to see suitability or wealth checks to ensure no mis-selling of products and a stringent dispute resolution process amongst other legal stipulations.

This won't necessarily make it harder to trade but it will offer greater protection to the trader. Whilst this won't have an impact on those that trade from outside of the UK to UK citizens it will increase the standards of brokers that are UK based. There may be regulations applied like those of the USA that make it illegal to solicit business from United Kingdom traders but at this time it is still ok to trade without any stipulations or rules.

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Risk Warning: The financial products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.

Paying Taxes And Fees

Like earnings in most countries when trading binary options the UK government officials state profits gained are subject to income tax by HMRC. The level of tax that an individual is liable for will very much depend on the earnings of the individual but will range from 20% to 50% depending on the level of annual income. Losses incurred from unsuccessful trades should of course be deducted and any income will be subject to UK tax at the appropriate level.

If an individual pays their salary tax through PAYE any additional income needs to be declared through self-assessment. Any income will be subject to income tax if the earnings for that individual is above £11k per annum. It is the responsibility of the individual to self-assess and declare this income for the appropriate tax year.

Trading options is not subject to any fees. The amount of profit an individual makes will be calculated and rewarded to the individual as stated in their payout terms. The individual may encounter small fees if trading in a foreign currency and may incur the weakness of one currency being converted to another.

If a trader is trading through a US broker and deposits currency in dollars the withdrawal may be subject to small fees from the broker or the bank on top of any changes in the conversion rate that mean they won't earn as much as they might ordinarily.

Other fees may be incurred by using a credit card that charge fees or any method of e-banking that charges a fee for deposits or withdrawals.

How we Recommend Brokers

Our recommendations apply to regulated binary options brokers across the globe in countries like Australia, South Africa, Russia, US, Canada and the UK to name but a few, in fact anywhere that a broker operates, even India. To ensure that we provide you with the best, up to date and accurate knowledge we are constantly reviewing the market place, ensuring we are at the forefront of any developments and familiarising ourselves with all the ins and outs wherever you are in the world.

We have a team of specialists who are very experienced in investing and trading, and know the finer details of the market. We analyse every single broker to check what they offer and how it stacks up against the competition. When we analyse a broker, we are looking for the following:

  • The licensing and regulation that they hold
  • Welcome bonuses and incentives that they offer
  • Ease of use and their mobile offering
  • Customer support and how efficient it is
  • Whether they offer a demo account
  • Contests and tournaments
  • Account types, trade types and assets available
  • Payouts offered and any fees associated with trading

We give our best UK binary options brokers a star rating for each aspect of their service so that you can see, at a glance, if that broker offers what you are looking for. We do this research to enable us to provide you with a comprehensive overview of what is available and how relevant it is to you and your trading requirements.

Expert Broker Reviews

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FAQ

United Kingdom FAQ

Is binary trading in the UK legal and safe?

UK popularity is increasing and whilst it is not regulated many reputable brokers have offices in London and other areas of the country. It is indeed legal to trade binary options. When it comes to safety that is all down to the reliability of the broker. If you choose a reliable broker then other than the obvious risk of losing money your money will be safe.

Do I need to pay taxes on my trading profits?

Yes you do need to pay taxes on profits in the United Kingdom. It is your responsibility to declare any earnings after losses have been deducted. In the UK it is required that any earnings over a certain level are subject to taxes. If you are paid through PAYE then it is your responsibility to self-assess and declare any earnings outside of your salary. A tax return must be submitted on paper or online by a deadline with any monies owed paid on time.

Can I test brokers before trading with real money?

The common answer is yes. There are two main ways in which you can trade without risking your own money. If you are new to trading it is advisable to opt for a broker with a demo account facility so that you can trade with virtual money whilst you get used to trading. Once you have made your mistakes with the virtual money you will be more confident and practised to play with your own money. Another way to trade is to use the no deposit bonuses that some sites offer.

Is it easy to make deposits and withdrawals?

Making deposits and withdrawals is a straightforward process. Simply open an account and make the required deposit. Many accounts will have a minimum deposit requirement for a particular account. Brokers accept many types of payments including credit cards, wire transfer and e-wallets. Withdrawals are made to the same method that was used to make the initial deposit. Withdrawals can take anywhere up to 5 days.

Can I trade using my mobile or tablet device?

If you pick a good broker then the answer is yes. The best brokers now have a platform that can be used on all types of devices including mobiles and tablets. Their mobile offering is usually a mobile friendly version of their desktop website or a specially designed app available from the App Store or Google Play. It is important for traders to be able to trade on the move and not be tied to a laptop or desktop PC.

Your capital may be at risk
Risk Warning: The financial products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.

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