Hirose Binary Option Broker Review (Updated 2025)

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1. Executive Summary

This report provides an expert analysis of Hirose Tusyo Inc. and its subsidiary Hirose Financial UK Ltd.’s involvement in the binary options market, primarily through their platform known as LION BO. Founded in Japan in 2004, Hirose Tusyo established itself as a significant player in the domestic Forex (FX) market before expanding internationally with the creation of Hirose Financial UK in 2010, becoming the first Japanese broker authorized by the UK’s Financial Conduct Authority (FCA).1

Around 2014, Hirose UK launched its proprietary binary options platform, LION BO, initially regulated by the UK Gambling Commission.2 This platform offered features like very low minimum trades ($1) and an early buy-out function, alongside high/low options on a limited range of currency pairs with short expiry times.3 The launch was part of an international expansion strategy and an effort to differentiate itself in the competitive UK brokerage market.4 Hirose invested significantly in technology, utilizing IIJ’s Raptor Service to achieve industry-leading execution speeds for its trading systems, including those supporting UK operations.4

However, the binary options market faced intense regulatory scrutiny globally due to widespread concerns about consumer harm, complexity, and fraud.7 In the UK, regulation shifted from the Gambling Commission to the FCA in January 2018 7, followed by temporary European Securities and Markets Authority (ESMA) restrictions and ultimately a permanent FCA ban on the sale of binary options to retail consumers, effective April 2019.11 Japan also implemented stricter rules under the Financial Services Agency (JFSA).13

Consequently, Hirose ceased offering binary options to retail clients in the UK/EEA 12 and formally terminated the LION BO service in Japan in June 2023.16 Hirose Financial UK has since pivoted its strategy, now focusing primarily on providing institutional FX liquidity and prime brokerage services, leveraging its technology and banking relationships.18 While it still maintains a retail FX/CFD offering via the LION Trader and MetaTrader 4 platforms 1, its asset range for retail is limited, primarily focusing on FX and precious metals.1

Binary options remain inherently high-risk instruments, often compared to gambling, with structures that typically disadvantage retail traders over time.8 Regulatory actions worldwide reflect these risks. While Hirose’s LION BO is now part of history for retail traders, the broker itself remains regulated by the FCA and JFSA for its current FX/CFD activities, which are eligible for Financial Services Compensation Scheme (FSCS) protection in the UK.20

related posts : Best Binary Options Brokers (in 2025)

2. Hirose Group Overview: Foundation and Regulation

Hirose Tusyo Inc. was established in Osaka, Japan, on March 18, 2004.22 The company’s core business from inception has been focused on providing foreign exchange margin transaction services, primarily through internet-based platforms.1 Its flagship FX service in Japan, LION FX, gained significant user acclaim, noted for competitive spreads (such as low U.S. dollar-yen spreads) and commission-free trading on smaller volumes (1,000 units).4 This focus on service quality and competitive conditions led to accolades, including a No. 1 ranking in the 2014 Oricon customer satisfaction survey for the FX category in Japan.4 The parent company, Hirose Tusyo Inc. (TSE: 7185), is regulated by Japan’s Financial Services Agency (JFSA).1

As part of its strategy for overseas expansion 4, Hirose Tusyo established a wholly owned subsidiary, Hirose Financial UK Ltd., in London in 2010.1 This move was significant as Hirose Financial UK became the first Japanese forex broker to receive authorization from the UK’s Financial Conduct Authority (FCA), under reference number 540244.1 Achieving FCA regulation was a key step in building investor confidence and establishing a reputation for reliability outside Japan.1 At its peak, the Hirose Group reported serving over 200,000 clients globally and transacting substantial FX volumes, historically cited as over $200 billion per month.30

The establishment of a regulated entity in the UK provided a crucial foothold for accessing the European market, particularly through the FCA’s regulatory passporting rights which allowed firms authorised in one EEA state to operate in others (a system significantly impacted by Brexit later on).15 This regulatory foundation in both Japan (JFSA) and the UK (FCA) underpinned the group’s operations and subsequent product launches, including its venture into binary options. Hirose Financial UK Ltd. remains authorised and regulated by the FCA.21

3. Entry into Binary Options: The LION BO Era (Circa 2014)

Around 2014, Hirose Financial UK expanded its product offerings by launching a proprietary binary options platform named LION BO.2 This launch occurred a couple of years after the establishment of its FCA-regulated FX brokerage, Hirose FX.2 The introduction of LION BO was a strategic move, positioning Hirose within the burgeoning, albeit controversial, binary options market as part of its broader international expansion plans.4

Significantly, at the time of its launch, LION BO was regulated by the UK Gambling Commission.2 This regulatory classification was pivotal. In the UK, prior to January 3, 2018, binary options were predominantly treated as betting products rather than complex financial instruments.7 Operating under the Gambling Commission likely presented a different, potentially less stringent, regulatory pathway compared to the requirements for traditional financial products overseen by the FCA at that time. This timing allowed Hirose to enter the market during a period of evolving regulatory definitions for binary options.

The strategic rationale behind launching LION BO appears multifaceted. Firstly, it served as a point of differentiation in what was described as a “very crowded” FCA-regulated Forex and CFD brokerage market in the UK.5 By offering binary options, Hirose could potentially attract a different client segment interested in the high-risk, fixed-outcome nature of these products, or provide an additional trading avenue for its existing FX clients.30 Secondly, it aligned with the company’s stated commitment to technological innovation and providing products demanded by clients.30 The binary options market, despite its risks, was seen as promising and rapidly growing during that period.3

4. LION BO Platform Analysis: Features and Functionality

Hirose developed LION BO as its own proprietary trading platform, distinct from the widely used MetaTrader 4 (MT4) platform it offered for FX trading.2 This proprietary approach gave Hirose complete control over the platform’s design, features, and branding. A mobile version of the LION BO platform was subsequently launched specifically for Google’s Android operating system, available for download via Google Play.3 The mobile application was described as having a clean design, utilizing the company’s corporate blue and red colours.3

Initial Offering and Trading Conditions:

Upon its launch in the UK, the LION BO platform had a relatively limited scope compared to more established binary options providers at the time.2 Key features included:

  • Available Assets: Trading was initially restricted to just four major currency pairs: EUR/USD, GBP/USD, USD/JPY, and AUD/USD.2 Hirose representatives indicated plans to expand the range of assets and trading hours in the future.2
  • Option Type: The platform offered High/Low binary options.3 This is the most common type, requiring traders to predict whether the price of the underlying asset will finish above or below the strike price at the expiry time. (It’s worth noting that some sources describing the Japanese LION BO platform mention Ladder options 41, suggesting potential differences between the UK and Japanese versions or evolution over time).
  • Expiry Times: Options were available with short-term expiry times of 5 minutes, 10 minutes, and 60 minutes.3 These short durations are characteristic of binary options and contribute to their high-risk, speculative nature.10
  • Minimum Investment: A notable feature was the exceptionally low minimum investment threshold required to place a trade, set at just $1.3 This low barrier to entry made the platform highly accessible to retail traders, including those with very limited capital, a factor often highlighted in discussions about the risks of binary options attracting inexperienced users.9
  • Payout Structure: LION BO advertised potential payouts of up to 90% for successful trades.2 However, it’s crucial to understand the inherent structure of binary options: a correct prediction yields a fixed payout (less than 100% of the potential loss), while an incorrect prediction results in the loss of the entire amount staked.8 This “all-or-nothing” characteristic defines the product.
  • Early Exit Feature: LION BO included a “buy-me-out” function, allowing traders to close their positions before the scheduled expiry time.2 This feature was reportedly active almost until the end of the option’s duration and offered a degree of flexibility not always present in binary options platforms. It was suggested that this feature might have been influenced by the stricter regulatory environment in Japan, potentially aiming to enhance transparency and trader control.2
  • Trading Hours: Initially, the platform operated with restricted trading hours, cited as 23:25 GMT to 15:25 GMT the following day.2 This timeframe might have been designed initially to cater to overlap with Asian trading sessions, potentially leveraging the parent company’s strong base in that region.2

Table: LION BO Platform Key Features (UK Launch)

FeatureDetailsSupporting Snippets
Platform TypeProprietary (Hirose), Web, Android Mobile App2
Initial Assets4 Major FX Pairs (EUR/USD, GBP/USD, USD/JPY, AUD/USD)2
Option TypeHigh/Low3
Expiry Times5 minutes, 10 minutes, 60 minutes3
Minimum Trade$13
Maximum PayoutUp to 90%2
Early ExitYes (“Buy-me-out” function)2
Initial Trading HoursLimited (e.g., 23:25 GMT – 15:25 GMT next day), potential Asian focus2

The combination of a proprietary platform, extremely low entry requirements, and the early exit feature characterized Hirose’s initial LION BO offering in the UK. While the limited assets and hours were drawbacks, the low minimum trade and buy-out function were potential differentiating factors in the competitive landscape.

5. Technological Infrastructure and Execution Speed

A core element of Hirose Tusyo’s operational strategy, extending to its UK subsidiary and the services offered there, including LION BO, was a significant focus on technological performance, particularly execution speed.4 Recognizing that system performance, especially the guarantee of fast execution even during high trading volumes, directly impacts customer satisfaction and trust, Hirose identified limitations in their existing systems prior to 2013.4 These legacy systems struggled with scalability as user numbers and transaction volumes increased, requiring substantial costs for upgrades.4

To address these challenges and achieve a competitive edge, Hirose Tusyo undertook a major system overhaul, choosing solutions provided by Internet Initiative Japan (IIJ). They adopted IIJ’s Application Service Provider (ASP) FX platform, the “IIJ Raptor Service,” for their main LION FX system in Japan, which launched in December 2013.4 This platform was noted for its high scalability, allowing resources to be added flexibly as needed, thus managing costs effectively.4 The IIJ Raptor Service utilized technologies like Oracle Coherence, an in-memory data grid platform employing cluster technology, to handle increasing transaction volumes and significantly enhance processing capabilities.4

The results of this technological investment were dramatic. Hirose reported a reduction in average execution speed from approximately 35 milliseconds (ms) to 4ms, representing an almost nine-fold improvement.4 Furthermore, the system achieved top execution speeds of 1ms, which Hirose claimed was the fastest in the industry at that time.4 This focus on speed was driven by a desire to surpass competitors and elevate service quality and customer satisfaction to unprecedented levels, with internal goals aiming for speeds consistently below 10ms.4

Crucially, this technological upgrade extended to Hirose’s UK operations. The system supporting services in the United Kingdom, which included the LION BO binary options platform, was also rebuilt using the IIJ Raptor Service.4 For the necessary UK-based infrastructure (mandated by local financial regulations 6), Hirose adopted the “IIJ GIO EU Service,” a cloud service designed to provide server environments in Europe with a quality comparable to those in Japan.4 This allowed Hirose to operate and maintain its UK infrastructure at a “Japanese level of quality,” providing reassurance and a strong foundation for its overseas services.4 The ability to manage UK servers from Japan and the one-stop nature of IIJ’s solution (covering infrastructure and applications) were highlighted as significant advantages, particularly for troubleshooting.4

This investment demonstrates that Hirose viewed high-performance technology and rapid, reliable execution as fundamental to its offering, likely applying this standard to both its established FX services and its newer LION BO platform to ensure a stable trading environment for the short-term nature of binary options.

6. Navigating the Regulatory Maze: From Gambling Commission to FCA Ban

The regulatory landscape for binary options underwent significant transformation during the period Hirose Financial UK offered its LION BO platform, presenting considerable challenges for providers. Initially, as mentioned, LION BO launched under the oversight of the UK Gambling Commission.2 This reflected the prevailing classification of binary options as a form of betting in the UK at that time.11

However, concerns regarding consumer protection, product complexity, and instances of fraud led regulators across Europe to reassess this classification.10 A major shift occurred on January 3, 2018, when the responsibility for regulating firms offering binary options in or from the UK transferred to the Financial Conduct Authority (FCA).7 This meant that firms like Hirose UK, which were already FCA-authorised for other activities (like FX trading), now required specific FCA permissions to continue offering binary options to UK consumers.7 Firms operating without this authorization faced potential criminal charges.7

The regulatory pressure intensified further. The European Securities and Markets Authority (ESMA), citing significant investor protection concerns due to complexity, lack of transparency, excessive leverage (in related CFD products), structural negative expected returns, conflicts of interest, and substantial retail client losses (estimated 74-89% of retail accounts losing money), introduced temporary EU-wide restrictions.51 These temporary measures were followed by permanent action from national regulators.

The FCA consulted on and subsequently confirmed a permanent ban on the sale, marketing, and distribution of all binary options (including ‘securitised binary options’, which ESMA’s temporary ban had excluded) to retail consumers by firms acting in or from the UK.11 This comprehensive ban came into force on April 2, 2019.12 The FCA explicitly stated its view that “Binary options are gambling products dressed up as financial instruments” and that the ban was necessary to protect investors from an “inherently flawed product”.12 The regulator highlighted concerns about the difficulty for consumers to accurately value the products, their addictive nature akin to fixed-odds betting, inherent conflicts of interest where the firm profits from client losses, and the high incidence of fraud associated with the sector.10 The FCA estimated the ban could save UK retail consumers up to £17 million annually.12

Simultaneously, the Japanese Financial Services Agency (JFSA) had also been addressing the binary options market. Japan implemented stricter rules earlier than Europe, taking effect around the summer of 2013.13 These rules, developed by the Financial Futures Association of Japan (FFAJ) and the JFSA, included measures such as prohibiting options with expiry times shorter than a certain period (initially suggested as one hour, later set at two hours), restricting bonus promotions that could impair trader judgment, and requiring disclosure of customer profit/loss statistics.13 While these rules aimed to make the market safer, they allowed regulated binary options trading to continue in Japan for several years after the UK/EU retail ban.16

The challenging regulatory environment was further complicated by the prevalence of scams. The FCA actively warns consumers about unauthorized firms and clone scams, where fraudsters impersonate legitimate, authorized firms.21 Notably, the FCA register includes a specific warning about a clone firm named “Hiroseoption,” which attempted to illegitimately use the details of the authorized Hirose Financial UK Ltd.21 This underscores the importance for investors to always verify a firm’s details and permissions directly via the official FCA Register.53

This evolving and ultimately prohibitive regulatory environment in the UK and Europe fundamentally altered the viability of offering binary options to retail clients for regulated brokers like Hirose UK.

7. The End of LION BO: Service Termination and Strategic Shift

The culmination of regulatory pressures and strategic reassessments led to the discontinuation of the LION BO binary options service in key markets.

Japan: Hirose Tusyo announced via a Board of Directors resolution on April 14, 2023, that the LION BO service for its Japanese clients would be terminated effective June 30, 2023.16 The final trading sessions occurred just after this date, concluding on July 1, 2023, and clients were given until July 28, 2023, for final login access.16 Clients were explicitly instructed to transfer any remaining balances from their LION BO accounts to their LION FX accounts before the final login date to avoid delays in the transfer process.16 Historical data releases confirm the tracking of LION BO trading statistics up until May 2023.55 The company filings noted a decrease in customer account numbers in August 2023 attributed to the LION BO service termination in Japan, though the impact on consolidated financial results was stated to be minor.56

United Kingdom / European Economic Area (EEA): The path to cessation for retail clients in this region was slightly different, influenced by both the binary options ban and Brexit. Following the FCA’s permanent ban on selling binary options to retail clients effective April 2, 2019 12, Hirose UK could no longer legally offer LION BO to this client segment within the UK. Subsequently, due to the end of the Brexit transition period and the loss of passporting rights, Hirose UK announced in December 2020 that it would stop accepting clients from EEA countries effective January 1, 2021.15 Existing EEA clients were required to close their accounts and arrange for the return of their funds.15 While this wasn’t solely a LION BO closure announcement, combined with the prior FCA ban, it effectively marked the end of Hirose’s retail binary options offering in the UK and Europe.

Strategic Shift and Financial Context: Concurrent with these developments, Hirose Financial UK explicitly signaled a strategic shift towards the business-to-business (B2B) or institutional market.19 Financial reports filed with Companies House stated the company would “continue to focus on B2B market opportunities in order to increase the number of institutional traders using its services”.35 This pivot was likely driven by the challenging regulatory environment for retail products like binary options and CFDs (which faced leverage restrictions) and the perceived opportunities in the institutional space.35 Brexit also played a role, impacting European revenue and prompting the focus on UK-based B2B clients.15

Assessing the direct financial impact of the LION BO exit is difficult based on the available information, as financial reports typically don’t break down profitability by specific product lines like binary options.57 Hirose Financial UK’s overall revenue for the fiscal year ending March 31, 2024 (FY2024) was reported as £717,430, nearly flat compared to FY2023’s £710,084.19 Net profit increased significantly to £530,413 from £295,298, largely due to a tax refund.19 Client deposits held by Hirose UK decreased from £925,481 at the end of FY2023 to £587,593 at the end of FY2024.19 The flat revenue, despite the full effect of the retail binary options ban being in place, suggests either that binary options revenue was already minimal before the formal exit or that growth in the institutional segment compensated for the loss. The parent company, Hirose Tusyo Inc., continues to report its overall financial performance based primarily on its FX and CFD trading activities.22

8. Hirose Financial UK Post-Binary Options: Current Offerings

Following its exit from the retail binary options market in the UK/EEA and Japan, Hirose Financial UK has reshaped its business, placing a strong emphasis on institutional services while retaining a presence in the retail FX/CFD sector.

Institutional Focus:

The primary strategic direction for Hirose Financial UK is now centered on serving institutional clients.18 The company leverages its technological infrastructure and experience to meet the demands of this segment.18 Its target clientele includes Banks, Asset Managers, Hedge Funds, Family Offices, other Brokers, Proprietary Trading Desks, Execution Desks, Corporate Treasuries, and Professional Clients.18

Key institutional services offered include 18:

  • Tailored FX Liquidity Solutions: Providing customized FX price streams by leveraging direct access to top-tier bank and non-bank liquidity providers and major trading platforms. This covers Spot FX (G10, Emerging Markets, XAU/USD), Non-Deliverable Forwards (NDFs), Full Amount, and Skew Safe options.
  • FX Prime Services & Margin Trading: Facilitating FX Prime Brokerage (FXPB) give-up deals through established relationships with prime brokers like NatWest, Standard Chartered, and Barclays. They also offer their own Hirose Margin FX Prime Services, granting global market access even to clients without direct prime broker relationships.
  • Distribution and Execution: Maintaining dedicated servers in major global FX hubs (London LD4, New York NY4, Tokyo TY3) and offering access via FIX API, the proprietary Hirose Trading GUI, and the MT4 platform.
  • Technology Platforms: Utilizing advanced trading platforms like MaxxTrader for swift execution and Lucera for reliable cloud infrastructure to enhance competitiveness.18

This institutional focus represents a significant strategic pivot, aiming to capitalize on the company’s strengths in execution technology and liquidity provision within a B2B context.19

Retail FX/CFD Offering:

Despite the institutional shift, Hirose Financial UK continues to offer services to retail clients.18 The key components of their current retail offering are:

  • Trading Platforms: Retail clients can choose between Hirose’s proprietary LION Trader platform (powered by ActTrader) and the industry-standard MetaTrader 4 (MT4) platform.1 Both platforms are available as downloadable desktop applications and mobile apps for iOS and Android devices.20 Demo accounts are available for both platforms, allowing traders to practice without risking real capital.1
  • Account Types: The primary retail accounts correspond to the platforms: the LION Trader Account and the MetaTrader 4 Account.1 No specialized account types like ECN, VIP, Mini, or Islamic (swap-free) accounts are explicitly offered according to some sources 20, although the broker operates as a Straight Through Processing (STP) provider.30
  • Tradable Assets: The offering is heavily focused on Forex, with around 50 currency pairs available (majors, minors, exotics).1 Spot Gold vs. US Dollar (XAU/USD) is also offered on MT4.1 The range of non-FX CFDs (like indices or single stocks) is noted as being limited compared to competitors.1
  • Trading Conditions:
  • Spreads: Variable spreads are offered, with examples cited such as EUR/USD from 0.8 pips on LION Trader and 1.9 pips on MT4.1 Spreads appear generally tighter on the LION Trader platform.1
  • Commissions: Trading is commission-free on standard retail accounts; the broker’s costs are incorporated into the spread.1
  • Leverage: Maximum leverage for retail clients is capped at 1:30, in line with FCA regulations.1
  • Execution: Market execution via an STP (Straight Through Processing) model with no dealing desk intervention.30
  • Trading Styles: Hedging and scalping are permitted.1 Expert Advisors (EAs) for automated trading are supported, particularly on the MT4 platform.1
  • Account Logistics:
  • Minimum Deposit: Sources vary, citing either $0 or $20 as the minimum deposit, potentially depending on the account type or funding method.1
  • Account Currencies: USD, EUR, GBP are supported base currencies.1
  • Funding Methods: Available methods include Credit/Debit Cards, Bank Wire Transfer, Skrill, Neteller, China UnionPay, and Fasapay.30 Deposits via e-wallets are typically faster than bank wires.1 Withdrawals are available via the same methods, with e-wallets generally offering faster processing.1 Fees are generally low or waived for deposits, but withdrawal fees may apply depending on the method.1
  • Customer Support: Support is available 24/5.1 Contact methods mentioned include live chat, email, phone, and historically Skype.1 Reviews suggest support is generally responsive and helpful 1, although specific forum feedback shows mixed experiences, which is common for brokers.80

Table: Hirose UK Retail Account Comparison (LION Trader vs. MT4)

FeatureLION Trader (ActTrader)MetaTrader 4 (MT4)Supporting Snippets
Platform TypesDownloadable, Web, iPhone, iPad, AndroidDownloadable, iPhone, iPad, Android1
Minimum Trade Size1 lot (1,000 units)0.01 lot (1,000 units)30
Expert Advisor SupportPotential exists (Actfx language, Pascal derivative)Yes (MQL4 language), extensive EA availability, dedicated forums & 3rd party support1
Leverage (Retail)Up to 1:30Up to 1:301
Margin Call (Stop Out)50% of initial margin50% of initial margin20
Full Hedging CapabilityYes (on request, default is Full Hedging)Yes (Default is Full Hedging)1
Trade ExecutionNo Dealing Desk (STP)No Dealing Desk (STP)30
Scalping AllowedAcceptedAccepted1
Minimum Order Distance3 pips3 pips20
Indicator CustomisationNoYes77
Demo AccountAvailableAvailable1
Spreads (Example EUR/USD)From 0.8 pipsFrom 1.9 pips1
CommissionIncluded in spreadIncluded in spread1
Available Assets~50 FX pairs, Metals~46 FX pairs, Metals (XAU/USD)1

Table: Hirose UK Funding Methods (Retail)

MethodCurrencies AcceptedProcessing Time (Deposits)Processing Time (Withdrawals)FeesSupporting Snippets
Credit/Debit CardsUSD, EUR, GBPTypically fast (minutes)Typically fastCheck with broker/provider30
Bank Wire TransferUSD, EUR, GBP2-3 business daysSeveral business daysPotential bank fees; check broker policy (may have waivers)1
SkrillUSD, EUR, GBPTypically fast (15min – hours)Generally faster than wireCheck with broker/provider (Hirose aims for low/no deposit fees)1
NetellerUSD, EUR, GBPTypically fast (15min – hours)Generally faster than wireCheck with broker/provider (Hirose aims for low/no deposit fees)1
China UnionPayUSD, EUR, GBPCheck with providerCheck with providerCheck with broker/provider30
FasapayUSD, EUR, GBPCheck with providerCheck with providerCheck with broker/provider30

The current retail offering from Hirose UK appears solid but standard, particularly strong in FX pairs but lacking diversity in other asset classes. The institutional focus might influence the pace of innovation and competitiveness for the retail segment going forward.

9. Binary Options: A High-Risk Landscape (Expert Context)

To fully understand Hirose’s journey with LION BO and the regulatory actions taken, it is essential to contextualize binary options within the broader financial landscape. Binary options are a specific type of derivative contract characterized by their simplicity and fixed, predetermined outcomes.8

Definition and Mechanics:

A binary option is essentially a wager based on a simple “yes or no” proposition regarding the price movement of an underlying asset (which could be a stock, index, currency pair, commodity, or even an economic event) within a strictly defined timeframe.9 The trader predicts whether the asset’s price will be above or below a specific level (the strike price) at the exact moment the option expires.47

Unlike traditional options (often called “vanilla” options), binary options do not grant the holder the right to buy or sell the underlying asset.8 They exercise automatically at expiry.8 If the trader’s prediction is correct (the option expires “in the money”), they receive a fixed, predetermined payout.9 If the prediction is incorrect (the option expires “out of the money”), the trader loses their entire initial investment.8 This “all-or-nothing” payoff structure is why they are termed “binary” or sometimes “digital” options.9 There are variations like “cash-or-nothing” (fixed cash payout) and “asset-or-nothing” (payout equals the value of the underlying).9

Inherent Risks and Comparison to Gambling:

Regulators and financial experts frequently highlight the high-risk nature of binary options, often drawing comparisons to gambling rather than traditional investing.9 Key risk factors include:

  • Negative Expected Return: The payout structure is typically designed such that the potential profit on a winning trade is less than the amount risked on the trade.8 For example, a winning $100 bet might return $170-$190 (70-90% profit), while a losing bet results in a $100 loss.2 This means a trader needs a win rate significantly higher than 50% just to break even, creating a statistical edge for the provider over time.9
  • Complexity vs. Simplicity: While the trading concept appears simple (“yes or no”), accurately pricing binary options and consistently predicting short-term market movements is extremely difficult, even for experienced traders.9 The short durations (often minutes or even seconds 3) amplify the speculative nature.
  • Addictive Potential: The fast-paced, fixed-odds nature of binary options trading can encourage compulsive or addictive behaviour, similar to gambling, leading to rapid and significant losses.10

Widespread Fraud and Malpractice:

The binary options industry has been plagued by fraudulent practices, leading to substantial investor harm and attracting intense scrutiny from global regulators like the SEC, CFTC, FCA, and ESMA.7 Common complaints and documented issues include:

  • Withdrawal Problems: Refusal to credit customer accounts or process withdrawal requests, often accompanied by ignoring customer communications or freezing accounts.8 Bonus conditions are frequently cited as a reason for refusing payouts.39
  • Platform Manipulation: Allegations of trading software being manipulated to distort prices or arbitrarily extend expiry times to ensure customer trades result in losses.8
  • Identity Theft: Platforms collecting excessive personal information (credit cards, passports) for illicit purposes.8
  • Misleading Marketing: Overstating potential returns and downplaying risks, often using aggressive tactics and social media advertising.8
  • Unregistered Operations: Many platforms operate offshore without proper registration or authorization from regulators in the jurisdictions they target, making recourse for victims difficult.7 The FBI estimates billions are lost annually to binary options scams globally.9

Regulatory Response:

Due to these pervasive issues, numerous regulators have taken decisive action. ESMA and the FCA implemented bans on the sale of binary options to retail clients.9 ASIC in Australia also banned their sale to retail investors, deeming them “high-risk” and “unpredictable”.9 Other jurisdictions have imposed strict regulations or issued numerous warnings against specific providers.13 Major online platforms like Facebook and Google also banned binary options advertising.9

This context underscores why Hirose’s LION BO, despite being offered by a regulated entity, operated in an inherently high-risk and controversial market segment that ultimately faced widespread regulatory intervention, leading to its withdrawal from retail markets.

10. Conclusion and Expert Assessment

Hirose Tusyo’s foray into the binary options market with its LION BO platform represents a case study in a regulated broker navigating a rapidly evolving and ultimately unsustainable product category for retail clients. Launching initially under the UK Gambling Commission’s oversight around 2014 2, Hirose aimed to leverage its established reputation in the FX market and its investment in high-speed trading technology 1 to capture a share of the burgeoning binary options sector and differentiate itself.5

The LION BO platform itself exhibited features aimed at attracting retail users, such as the remarkably low $1 minimum trade size and an early exit “buy-me-out” function, potentially offering more transparency than some competitors.2 However, it also shared the core characteristics that drew regulatory ire: short expiry times and the inherent all-or-nothing payout structure.2

The broker’s journey mirrored the industry’s trajectory. As regulatory scrutiny intensified globally, shifting from gambling oversight to financial regulation under the FCA in the UK 7, and culminating in outright bans for retail clients by ESMA and the FCA by April 2019 11, the operating environment became untenable. Japan, while implementing stricter rules earlier 13, eventually saw Hirose terminate its domestic LION BO service in mid-2023.16

Hirose Financial UK demonstrated strategic adaptability by pivoting away from the problematic retail binary options market and refocusing its efforts on the institutional FX space.18 This move leverages its technological infrastructure and established banking relationships to serve a different client segment. While it continues to offer retail FX and limited CFD trading through the LION Trader and MT4 platforms 1, this appears to be a secondary focus compared to its institutional ambitions. The potential impact of this institutional focus on the quality and competitiveness of its retail offering remains an area for observation by prospective retail clients, although current support reviews appear generally positive.1

Final Assessment:

Hirose Financial UK is currently a legitimate broker, authorized and regulated by the FCA (FRN: 540244) 21 and its parent company by the JFSA.1 Its history with LION BO is relevant for understanding the broker’s evolution but Hirose does not currently offer binary options to retail clients in the UK, EEA, or Japan. Traders considering Hirose today should evaluate its current retail FX/CFD offering (platforms, spreads, asset range, support) or its institutional services, depending on their profile.

The binary options product class itself remains fraught with risk for retail participants. The inherent negative expected return, the potential for platform manipulation, widespread scams, and the comparison to gambling led to decisive regulatory action globally.8 While Hirose operated LION BO as a regulated entity during its existence, the fundamental risks associated with the product type persist, regardless of the provider.

For current clients engaging with Hirose Financial UK’s regulated FX and CFD activities, protection under the Financial Services Compensation Scheme (FSCS) is available for eligible claims up to £85,000 per person, should the firm fail.20 This provides a crucial layer of security for clients using their current, permitted services. However, this protection does not extend to activities outside the scope of FCA regulation or to losses incurred through market movements. Verification of a firm’s status and permissions on the FCA Register remains paramount for any UK investor.53

Works cited

  1. Hirose Financial Review – ☑️ Pros and Cons (Updated 2025*) – FXLeaders, accessed April 23, 2025, https://www.fxleaders.com/forex-brokers/forex-brokers-review/hirose-financial-review/
  2. Hirose UK Launches LION Binary Options – Regulated By The …, accessed April 23, 2025, https://www.financemagnates.com/forex/brokers/hirose-uk-launches-binary-options-regulated-by-the-gambling-commission/
  3. Hirose Financial UK Offer a Mobile Platform for Binary Options, accessed April 23, 2025, https://www.financemagnates.com/binary-options/analysis/hirose-financial-uk-offer-mobile-platform-binary-options/
  4. Hirose Tusyo Inc., accessed April 23, 2025, https://www.iij.ad.jp/en/svcsol/case/pdf/hirose-fx.pdf
  5. Forex Industry Week Review: Binary Options broker leaves Cyprus, accessed April 23, 2025, https://www.leaprate.com/forex/market-news/forex-industry-week-review-binary-options-broker-leaves-cyprus-problems-japan-fx-firms-uk-lots/
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