Binary options are illegal in the UK, following a ban imposed by the financial regulator, but this only applies to retail investors. The FCA believes these products carry higher than acceptable risks and permanently prohibited binary options in 2019. The FCA extended the ban to all securitised binary options, which cannot be sold to any investor, as it concluded that the risks are inherent. There is a large potential for traders to make unexpected losses due to unethical trading practices. Part of the rationale is that the true or false model means that binary options act more as a form of gambling than a true investment and are attractive to inexperienced investors who see the simplicity and mitigated loss as an easy win – which may not be.