Binary trading or binary options trading, allows traders to speculate over a short period time the direction of a given financial instrument. These tradable assets include; commodities, forex, stocks, and indices.
Binary trading has its risk and payout known before entering the trade; this means that the loss cannot exceed the given amount placed for that trade.
Binary trading in the UK has really picked up and so regulatory bodies have a concern on how it should be conducted to avoid a situation where the risk expressed to the clients could be damaging.
So far the binary trading in UK has been under the control of the Gambling Commission, and this has obviously put the binary brokers at an advantage when it comes to tax exemptions. This is because the profits acquired from this type of trading are considered gambling earnings and are not subject to taxes.
Binary trading in the UK is treated as gambling because it is yet to be put under the Financial Council Authority regulations. This makes the users susceptible to many risks that can be curbed if the binary trading was under regulation.
Binary Trading Firms in the UK
There are binary trading brokers that are suitable for UK residents, these brokers know that the UK has a prime customer base and so they have very luscious offers that many cannot turn down.
The following list contains some the brokers and their various promotional bonuses;
- 24Option - caters for both high and low volume traders thus making them a better choice for someone who wants to try either, this increases the chances of making more. They also have bonuses for the deposits made, prize money for their competitions, educational resources, excellent customer service and fast withdrawals.
- Porter Finance - it is headquartered in London, because of this it is highly rated and trusted by many binary traders in UK. They offer bonuses for clients’ deposits; they also have exclusive offers for various account types offered.
- Banc de Binary - it is one of the best brokers offering their binary trading services in the UK. They have a simple and easy to use platform which enhances the performance of the traders. 200 tradable assets which is obviously a wide range of assets to choose from. They are a mix of forex pairs, commodities, stocks and indices.
- AnyOption - this broker not only caters for the UK clients but also allows them to set their payouts on the trades they take. That means that one can take multiple trades and still get to set the expected return on the trades taken. This makes them a favorite among the many brokers offering binary trading services.
- TradeRush - they offer a wide range of option types and by so doing maximizing the user experience. They also have a variety of deposit and withdrawal options ensuring every client has access to a desired method.
- uBinary - this broker has a variety of trading accounts that cater for every level of trading experience. Each account has a given trading volume and deposit amount, so every client according to his or her experience can choose a good fit for their trading. To add to it they also have deposit bonuses for every account.
- Redwood Options - they know that every trader has his or her own strategy and because of that they offer short term expiry trading and one touch trading, the two mentioned are just among the trading styles offered to their clients and above that they have very good customer service and their other services are impeccable.
Conclusion of Binary Trading in UK
It is important for a people to understand some things before getting into binary trading. Since it is a very short term style of trading, every individual who wants to try it out should know exactly how to trade the markets.
It can be very depressing for someone who thought this was a get rich quick scheme, it is rather hard work and very daunting for those who are faint hearted. The psychological impact to every trader is tremendous and that coupled with the loss of deposited funds could really break one down.
It is very important to seek information and education before delving into binary trading. Also before choosing a broker it is important to conduct a background study to learn about them. Some brokers have set up bucket shops to defraud unsuspecting individuals off their hard earned money.
Binary trading also has a positive side to it; this is obviously to the seasoned trader who has acquired enough knowledge and practice.
For a trader like this one, the advantages of trading binary can further amplify his or her success. This because, for binary trading, the risk for every trade is known before hand and it is fixed, the risk is the amount of money put down for a particular trade. This is the only amount that one stands to lose if the trade goes the other way.
The second advantage is that the outcome is known before hand, so this will really help to cover the ambiguity surrounding the where should one take profits. The other advantage is that there is no leverage offered; this protects the investors deposit from undue risk in case the trade goes the opposite way.
The client has a lot to learn and to research on before depositing their money in any of the brokers mentioned above. The most important thing for everyone who wants to get involved in binary trading in the UK is to do their own personal background checks.
This will help one to acquire important information on how the industry works and also make a comparison of the various brokers out there and their advantages.
Having this information prior will cover you from making some novice mistakes that may lead you to losing your cash or important personal information to a bucket shop posing as a broker. Following the above steps will guide you to making a sound decision.