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Updated on: 11 August 2016

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Binary options trading was invented in the United States of America. However, this form of investment also became very popular in Europe as well. In fact, at this moment the majority of binary trading brokers existing today are operating from a country that is located in the European Union.

However, many traders aren’t sure if financial investing legal in Europe or not. The short answer is that binary options are not illegal in any European country at this moment. However, financial trading is also not regulated either in most countries.

There are however a few countries in Europe were binary options trading is explicitly regulated. People living in countries where financial trading is not regulated (but not illegal either) will have the possibility to trade at the brokers that are licensed in those European countries that do have online investing laws.

Read this article in order to find out how exactly the regulation of binary investing in Europe functions. On this page, we’ll also show you a list of licensed European binary options brokers.


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Are Binary Options Legal in Europe?

Binary options are at this moment legal in every European country. Most countries however do not have any laws at all at this moment that refer to binary betting. But the absence of these laws means that people are allowed to engage into financial trading.

When we explain this concept we always bring up our stamp collecting or coins collecting example. – Stamp collecting is also not regulated by any laws at all but it involves monetary transactions. However, the absence of a law regulating stamp collecting does not mean that stamp collecting is illegal. In fact, it actually means that it IS legal.

But if binary options trading is not regulated in Europe, then how can I make sure that broker are not scamming me?

Financial trading IS regulated and officially legalized by a few European countries. – As such, you can always choose to register at those brokers that have a financial trading license issued by a country that has binary options regulations. You can do this even if you live in a country that does not have regulations.

If absolutely no European country would have financial betting laws, then it would be wise not to trust any single broker.

But fortunately there are countries in Europe with online investing laws. And as explained, you can always trade at brokers licensed in these countries no matter where you live.

Below you’ll find a list of countries that regulate binary betting.

The United Kingdom

At this moment, financial trading is legal and regulated in the United Kingdom. In the past, the Financial Service Authority conducted the regulation of financial trading. Now, the regulation of this business is taken care of by the Financial Policy Committee (FPC) and the Financial Conduct Authority (FCA).

Binary options brokers wishing to operate in the UK will have to apply for a license at these government organizations. Obviously, only legitimate brokers will receive such a license and the fraudulent ones will be banned and not allowed to offer their services.

Now, if you live in another European (or any other) country then it’s a good idea to trade at brokers licensed in the UK.

Cyprus

Cyprus was the first country to legalize and regulate financial betting in Europe. Many people believe that Cypriot regulations are inadequate for the simple reason that Cyprus is not a “big country”. However, Cyprus is a full member of the European Union.

All of the binary investing trading laws and regulations of Cyprus are in line with European Union financial trading regulations. The binary options laws of Cyprus are actually on par with the laws of the United Kingdom since both take European Union laws as a basis for their domestic laws.

Malta

Malta is an emerging European financial betting regulatory jurisdiction. Like Cyprus, Malta is also a full member of the European Union meaning that it’s forced by the law to follow all the strict financial regulations implemented by the European Union.

Malta licensed financial service providers are as safe as the ones licensed in Cyprus and the United Kingdom.

Future jurisdictions

In the near future many more European countries will decide to regulate financial betting. One of these countries is Italy. It’s believed that sometimes during 2013 the country will begin to license legitimate binary options brokers en masse.

Others countries such as Germany, Spain and France will most likely follow suit during the upcoming years. This just proves that online investing is a legitimate form of investment that is endorsed by national governments.

If binary options trading would be a scam, then countries like the United Kingdom and entities like the European Union would never officially legalize it and give licenses to binary options brokers.

Countries with no laws

At this moment however most countries in Europe do not have any online investing laws. But like said, this does not mean that people are not allowed to trade on financial assets online. It in fact means that they are allowed because the government is at this moment not interested in this subject and has no authority in this matter.

But like we also said earlier, it’s perfectly safe to trade on financial assets in these European countries provided that you trade at binary options brokers licensed in European countries that do have online investing regulations.

What European Binary Options Brokers are Legal?

Well, in theory there are no illegal binary options brokers in Europe because financial betting is not illegal in Europe. However, people generally regard legal European binary options brokers as those brokers that are licensed in at least one European country.

So, our recommendation to you is to only trade at financial service providers that have a license in at least one country in the EU. This way you will be able to know with 100% certitude that the broker in question is offering legitimate and safe online trading services.

The problem with unregulated countries is that brokers that are not licensed at all are also able to provide services to people living in those countries. So, you have to be extremely vigilant to make sure to choose a broker that is licensed elsewhere.

For example, on this page you can find a list of binary options brokers licensed in Europe. All of these brokers have a license either issued in the United Kingdom, Cyprus, Malta, Italy or all of them combined. Check them out now if you want to trade on financial instruments legally.

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Ainur Serimova

how to ban the activities are not honest brokers? Brokerage Company Delston deceived a lot of people. The company did not return the money people.