The Financial Conduct Authority (FCA) is the primary regulator of brokers, Forex brokers, CFD, Spread Betting and financial firms doing business in England.
Before 2015, Binary options brokers in England were officially under the regulatory oversight of the Gambling Commission. Starting in January 2015, regulatory oversight will be transferred to the FCA. We are waiting to see when the FCA will actually issue their own licenses to brokers that are exclusively binary options brokers.
Currently, there are two types of regulated binary option brokers in the UK.
- Binary options brokers who have received a license from the Cyprus SEC and under EU Mifid laws are considered legitimate financial institutions for traders in the UK.
- The binary options brokers like; 24Option who have taken their CySEC license and have registered with the FCA in England as a Cyprus broker operating in England.
The main issue that traders need to be aware of; are the unlicensed brokers who operate in the United Kingdom. There really is no reason for a trader in Manchester or London to open an account with a broker that does not have a license from any countries financial regulator. Another word of caution for binary traders. Many brokers will list a London address on their website. 99% of these companies are based in off shore locations and the address is merely a post office box.
There are almost 300 binary option brokers worldwide. Traders can see the most popular brokers here. The reason to choose one of the large and popular brokers is because otherwise you will soon experience one of the typical complaints about brokers.
So which broker should a trader from the UK go with? We say traders should compare the different trading platforms. And see which trading platform suits your trading needs.
Have a look at 24Options platform here and see which one you like better. (All of these UK Binary Option Brokers parent companies are registered with the FCA).
Verify a Binary Options Brokers FCA license on the Official FCA Website: http://www.fsa.gov.uk.