UK Binary Options
Binary options have been popular with UK traders for a number of years. Until recent European Union (EU) regulatory changes affecting the UK, UK traders have always had a wide variety of binary option brokers to choose from. Unfortunately this is no longer the case.
Due to these changes, UK binary option traders are now forced to look overseas when seeking a broker. The downside is that choices are now much more limited.
UK Top Binary Brokers
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Depositing and Withdrawing
One of the challenges of dealing with overseas brokers is being able to deposit and withdraw cheaply and efficiently. While most overseas brokers will accept UK binary option traders, they often will not have suitable payment methods available.
Zentrader is one binary options broker that has invested in offering UK traders suitable deposit and withdrawal methods. UK traders can now deposit and withdraw in GBP via local bank transfer and also credit cards.
Are Binary Options Legal in The UK?
Yes, UK residents are free to trade binary options. While the EU ESMA regulatory ban prohibits firms based in the UK or EU offering binary options, there is no law prohibiting UK traders from dealing with an overseas firm.
UK Binary Option Taxes
WARNING: UK taxes is a complicated matter! We are only providing general commentary on this matter and recommend you seek personal advice from an expert.
Binary option brokers do not and are not responsible for withholding taxes. This is 100% responsibility of the trader.
In some instances, binary option trading profits could be free from taxation if the HMRC classifies the transactions as “speculative” (i.e. the same as gambling profits). But there are many tests applied to determine this, so you must seek professional advice.
Binary options in the UK are regulated by the FCA.
As the UK is (currently) a member of the EU, the current ESMA rulings on binary options apply to UK based brokerage firms. It will be interesting the see what happens post BREXIT and if the UK authorities will continue to follow in the footsteps of EU bureaucrats.