Binary Options 

Regulation of Binary Options in Sweden

As of now, Binary Options in Sweden are legal, according to the law that allows treating Binary Options as securities instruments and a type of gambling. The regulator stresses that most Binary Options are falling under the definition of financial instruments. However, there are some exceptions. The vast assortment of Binary Options products makes it difficult for the regulator to set the proper framework.

However, there are some norms:

  • In case the Binary Options products are perceived as financial instruments, the provider is obliged to have a specific license from the authorities.
  • In case a foreign entity is intending to offer its services to clients in Sweden, it must inform the regulator prior to starting any business. The Finansinspektionen reports that a number of UK and Cyprus-based Binary Options brokers are now targeting the Swedish investors.


Presently, the watchdog is working on spotting the unregulated and unknown Binary Options brokers across the country. The FI states that it intends to consult with other EEA states where the particular Binary Options firm is regulated in order to decide on further actions. Overall, Swedish regulator does not favor the Binary Options products. The authority believes that it is an inappropriate product for most of the clients.

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