I have noticed that only spread betting firms offer Options trading in the UK. Now I'm not sure how different they are to CBOE traded options other than being tax free, so I was wondering if anyone has any experience in this area? The alternative is to go with a US broker like Interactive Brokers or OptionsXpress but I'm not really sure if they are regulated in the UK and whether the FCA would cover any losses in case of an unexpected broker bankruptcy. So how are options normally traded in the UK anyway, and any differences in terminology I should be aware of?
UK stockbrokers offer UK option trading. You have to pay capital gains tax on any profit which is why spreadbetting is popular as it is tax free. Interactive brokers offer UK options trading and are regulated in the UK.