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Author: Shelly Burns
Broker Specialist
Shelly Burns

British Options Trading

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 while this makes it easy for many to trade without restriction, it does bring with it other threats and issues.

For those looking to invest in the EU, it is essential 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.

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 make finding a legal broker a simple process.

Top Rated Options Sites

#1 - Binarycent: Best Overall

Binarycent Logo
9.8
Superb
Bonus Up-to $2000 Assets 150+
Min. Trade $1 *Payout % 92.76%
Over 150+ assets to trade now
Bespoke platform for PC and mobile
Low min deposit of $0.10 per trade
Great support in multiple languages
Platform not suited to pro traders
No free demo account option
Deposit Methods
AMEX Bitcoin PaySafeCard Neteller
119 visited this site today
Binarycent Review

Editors Summary

Binarycent, while a relatively new broker, tick all of the boxes when it comes to trading. They are competitive and offer all of the things that you would expect. Benefits include an excellent mobile trading platform, welcome and deposit bonuses and a good support system. There are phone numbers available in many languages, alternatively, you can send a message with your details, and someone will get back to you.

#2 - Raceoption: Best Free Demo

Raceoption Logo
9.3
Excellent
Bonus Up-to $1600 Assets 140+
Min. Trade $1 *Payout % 91.48%
Over 140+ assets to trade now
Account options for every trader
Trading available 7 days a week
Super-fast 1 day withdrawals
Demo account requires $250 deposit
UK-based, but licensed offshore
Deposit Methods
AMEX PayPal PaySafeCard Skrill
79 visited this site today
Raceoption Review

Editors Summary

It is clear to see that Raceoption mean business and that their all-around offering to traders is making them a serious competitor in the binary options market place. From their easy to use trading platform to the fact that they offer such good withdrawal terms, you can't help but feel that this broker is going to experience a lot of growth, quickly. With a base in London, reputable licensing, an acceptance of US customers they tick all the boxes when it comes what traders want.

#3 - IQ Option: Best Mobile App

IQ Option Logo
9.1
Very Good
Bonus Up-to $1000 Assets 80+
Min. Trade $1 *Payout % 89.72%
Over 80+ assets to trade now
Licensed under CySEC jurisdiction
Huge range of educational tools
Payouts of over 85% on most trades
Demo account only has 13 assets
IQ Option does not offer bonuses
Deposit Methods
PayPal MasterCard Neteller Skrill
44 visited this site today
IQ Option Review

Editors Summary

IQ Option is currently the top binary options trading platform in the market as far as we are concerned. Their trading conditions are highly legit placing them firmly in the lead among all other binary brokers. All research and tests lead us to believe they are not a scam and value their customers. The feeling of security is backed up by licensing and regulation from CySEC, one of the industries leading regulatory bodies.

Risk Warning / Ad Disclosure

Risk Warning: The 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 risk money that you cannot afford to lose.

Ad Disclosure: Some of the links that you will find on this website are advertisements for which we do receive financial gain for referring new customers.

Options Sites in The UK

United Kingdom

When it comes to binary trading, many UK investors prefer to trade options with a locally based broker. If you’re 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

UK regulation is highly regarded, but 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.

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 new to trading it allows you to get acquainted with the functionality, the various assets and trade types and the different 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.

Broker Fees And Tax

Todays Top Traders
Trader Broker Asset Profit

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.

If an individual pays their salary tax through PAYE, any additional income gets declared through self-assessment. Any profit 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 are not subject to any fees. The amount of profit an individual makes gets 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 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 are incurred for using a credit card that charge fees or any method of e-banking that charges a fee for deposits or withdrawals.

British Licencing

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 is expected in July 2016 however 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 miss-selling of products and a rigorous dispute resolution process amongst other legal stipulations.

These checks won't necessarily make it harder to trade, but it will offer greater protection to the trader. While this won't have an impact on those that operate 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, however, at this time, it is still ok to trade without any stipulations or rules.

Binary options trading in the UK has become very popular in recent times.

How we Recommend Brokers

Our recommendations apply to regulated binary options brokers across the globe in countries like Australia, South Africa, Russia and Canada to name but a few. To ensure that we provide you with the best, up to date and accurate knowledge we are regularly 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 more delicate details of the market. We analyse every single broker to check what they offer and how it stacks up against the competition. When we investigate 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 provide 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 need. 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.

Our Review Rating System (More Info)

10% 10% 10% 15% 15% 20% 20% Pie Core
  • Account Types
  • Banking & Payouts
  • Bonuses & Promotions
  • Mobile Trading
  • Trade Types
  • Special Features
  • Customer Support
Expert Reviews

Frequently Asked Questions

FAQ

Is binary trading in the UK legal and safe?

It is indeed legal to trade binary options. 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 fees and taxes on my profits?

Yes, you do need to pay taxes on profits in the United Kingdom. If you get paid through PAYE, then it is your responsibility to self-assess and declare any earnings outside of your salary.

Can I test brokers before trading with real money?

The typical answer is yes. 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 while you get used to dealing.

Is it easy to make deposits and withdrawals?

Just open an account and make the required deposit. Withdrawals happen 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?

The best brokers now have a platform that works on all types of devices including mobiles and tablets. Their mobile offering is often a specially designed app available from the App Store or Google Play.

Top Rated Options Site

#1 - Binarycent: Best Overall

Binarycent Logo
9.8
Superb
Bonus Up-to $2000 Assets 150+
Min. Trade $1 *Payout % 92.76%
Over 150+ assets to trade now
Bespoke platform for PC and mobile
Low min deposit of $0.10 per trade
Great support in multiple languages
Platform not suited to pro traders
No free demo account option
Deposit Methods
Visa AMEX Bitcoin Klarna
152 visited this site today
Binarycent Review
Risk Warning / Ad Disclosure

Risk Warning: The 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 risk money that you cannot afford to lose.

Ad Disclosure: Some of the links that you will find on this website are advertisements for which we do receive financial gain for referring new customers.

Meet The Author
Shelly Burns
Shelly Burns
Broker Specialist

Shelly is proud of her current position as Head of Brand for a well-known organisation that owns several brokerages in the trading sector. She’s consulted for us since 2015 and readers can benefit from her insider knowledge of how brokers work.

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