10/24/2016

The Financial Conduct Authority (FCA) does not regulate binary options

At present binary options are regulated by the UK’s Gambling Commission, but only if the broker has  equipment located in the UK.

If this is not the case, any binary options that the firm offers will not be regulated either by the Gambling Commission or by  the FCA.

Since the European Union (EU) countries consider binary options to be a financial, rather than a gambling product. Under EU financial services law, firms which are legally established and authorised in one European Economic Area (EEA) country - the EEA encompasses all EU countries as well as Norway, Lichtenstein, and Iceland - are entitled to do business in any other EEA country once certain procedural safeguards are met.

This means that although the FCA does not currently regulate binary options, brokers offering binary options trading which operate as financial services firms in other EEA countries, are able to do business in the UK and consequently appear on the FCA's Register of financial services firms.
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