Gambling with Binary Options – Work or Play
Gambling with Binary options might be considered as work. Taking a gamble in leisure time is definitely not work. There you have the real definition.
We here examine what binary options is all about. There is a difference between gambling and trading and they are definitely not the same.
Binary options are traded as assets on open business markets like stocks, commodities and currencies. Most market traders would probably regard themselves as having a degree of skill or ability to generate some wealth.
Most gamblers who visit casinos, whether online or at a place of leisure would consider themselves to be strictly gamblers. There may be the odd crossover like sport betting but it is still strictly a leisure base activity.
Gambling can have betting options in the same way that taking a risk in binary option can. It is all about the stake and the odds.
Insider knowledge is generally not possible within gambling circles. The casinos have been very smart in making money. The outcome of spin of the roulette wheel is chance in a properly licensed gambling establishment. The casino must have and an edge to make a profit over time.
Control of Binary Options Trading
Strangely, regulation of binary options trading in the UK is undertaken by the National Gambling Commission. Contrary to popular belief, it is not regulated by the Financial Conduct Authority or FCA.
It therefore follows that the UK Gambling Commission are charged with regulating binary options providers within the UK. They do not have any jurisdiction over gambling equipment which is located outside on the UK.
The UK do not therefore have any power to regulate binary options operations equipment which operated outside of the UK. There are many EU companies operating outside the UK within the binary options industry, thousands of people are employed.
This makes regulation of the binary industry in the UK very difficult.
There have been reports of scams including non UK companies refusing to pay out on correct predictions. Within the square mile itself a total of 2065 fraudulent operations have been reported since 2012 with average losses of £22,811. Organisations from Israel and Canada have been implicated.
This will change when Britain adopts the EU Markets in Financial Instruments Directive next year.
In the meantime who could blame the binary options industry from thinking they are part of the gambling industry?