Binary Options Regulation by Country: What Regulators Have Published

This page lists what regulators in Canada, the United Kingdom, the European Union, Germany and Australia have published about binary options, country by country, using their own documents. It does not assess any firm and does not say whether an individual could face liability.

Canada

The Canadian Securities Administrators published Multilateral Instrument 91-102, which came into force on 12 December 2017. Section 2 states: "No person or company may advertise, offer, sell or otherwise trade a binary option with or to an individual." Section 3 applies the same prohibition to a person or company created, or used, solely to trade a binary option.

Section 4 sets out a carve-out: "Sections 2 and 3 do not apply in respect of a binary option having a term to maturity of 30 days or longer." In a statement dated 26 April 2017, the Canadian Securities Administrators said: "There are no registered individuals or firms permitted to trade binary options in Canada." That statement is from the proposal stage, so read it as a 2017 position. For provincial detail, see our guide to binary options in Canada.

United Kingdom

On 29 March 2019 the Financial Conduct Authority (FCA) said: "All firms acting in or from the UK are prohibited from selling, marketing or distributing binary options to retail consumers." It added: "The FCA's rules are permanent and come into force on 2 April 2019." The FCA also applied its rules to securitised binary options, which the EU-level prohibition had excluded. Our guide to binary options in the United Kingdom gives the wider overview, and what the FCA says about its regulation covers the FCA's scam guidance.

European Union

Decision (EU) 2018/2064 of the European Securities and Markets Authority (ESMA) states: "The marketing, distribution or sale to retail clients of binary options is prohibited." It also says: "This Decision shall apply from 2 January 2019 for a period of 3 months."

ESMA later said it would not renew its temporary prohibition. Its notice explained that the measure then in force, Decision (EU) 2019/509, would expire at the end of 1 July 2019 if not renewed. The notice gave this reason: "As most national competent authorities (NCAs) have taken permanent national product intervention measures relating to binary options that are at least as stringent as ESMA's measure, ESMA will not renew its temporary prohibition." This page makes no statement about the position in individual member states. See our guide to binary options in the European Union.

Germany

The Federal Financial Supervisory Authority (BaFin) said: "The marketing, distribution and sale of binary options to retail clients will remain prohibited in Germany." It also said: "BaFin's general administrative act is published on the BaFin website and will be applicable from 2 July 2019."

The order sets out exceptions for binary options that meet three conditions together: a term of at least 90 calendar days, a published and approved prospectus, and no market risk to the provider with no profit or loss for the provider beyond disclosed fees. The order states no end date. Details are in our guide to binary options in Germany.

Australia

The Australian Securities and Investments Commission (ASIC) said: "ASIC has made a product intervention order banning the issue and distribution of binary options to retail clients." It added: "The ban will take effect from Monday 3 May 2021."

In its 2022 release on extending the order, ASIC said that in the 13 months before the ban, between 74% and 77% of active retail clients lost money trading binary options. The explanatory statement to Instrument 2022/779 says the 2021 order remains in force until it is revoked and, if not revoked, will sunset on 1 October 2031. See what ASIC says about its regulation and our guide to binary options in Australia.

United States and Other Countries

This page makes no statement about the United States or any country not listed above. For the United States, see our guide to binary options in the United States. For dates across regulators, see the binary options regulation timeline.

Frequently Asked Questions

Which regulators does this page cover?

It covers the Canadian Securities Administrators, the FCA, ESMA, BaFin and ASIC, each described only through its own published documents.

Do these rules apply to every kind of customer?

The Canadian rule refers to individuals, the EU decision refers to retail clients, the FCA refers to retail consumers and ASIC refers to retail clients. Check the original document for the exact scope.

Are there exceptions?

Canada's instrument does not apply to a binary option with a term to maturity of 30 days or longer. BaFin's order lists three conditions that must all be met for the exception to apply.

How do I check whether a firm is registered?

See how to check if a binary options broker is regulated, which explains the FCA and CFTC guidance.

Sources and Official References

• FCA: FCA confirms permanent ban on the sale of binary options to retail consumers (29 March 2019)
• ESMA: Decision (EU) 2018/2064 (14 December 2018)
• ESMA: ESMA ceases renewal of product intervention measure relating to binary options (1 July 2019)
• BaFin: press release on the ban on binary options (1 July 2019)
• BaFin: general administrative act (German)
• ASIC: ASIC bans the sale of binary options to retail clients (21-064MR)
• ASIC: Proposal to extend the binary options product intervention order (22-118MR)
• Explanatory statement: Instrument 2022/779
• OSC: CSA Multilateral Instrument 91-102 notice (12 December 2017)
• Canadian Securities Administrators: statement of 26 April 2017

This page summarises what the regulators' published guidance says. It does not address whether an individual could face liability. Seek independent legal advice.