Anyone who has been familiar with binary options trading for any length of time is likely to have heard one or more horror stories related to brokers. Claims of sketchy trading platforms, non-payment of profits, and horrid or non-existent customer service circulate the internet on a regular basis. While we understand the responsibilities of the broker, what is your role in all of this? The fact of the matter is that you, the trader, can do your part to avoid problems with your broker.
It should go without saying (but we’re going to say it anyway), that the easiest way to avoid problems is to select a great broker from the start. If you happen to be one of the many who are in search for a broker right now, you’re in luck. You have the chance to screen each of the available options carefully and to select only the best. Reviews, an internet search, and evaluation of a broker’s website and platform will help to ensure that you make a wise decision.
But what if you already have a broker? Unless you are unfortunate enough to have paired up with one of the few truly bad brokers in operation (for the time being, anyway), then problems can be avoided. When traders post about broker-related scams online, the most common claim is non-payment of funds. This could be related to slow payments or no payments. Often, the problem is linked to ID verification. All brokers ask that their clients submit identification documents before being able to withdraw funds. Do this right away and there should be no problems.
Consider also being realistic in regard to the expected time-frame for receiving withdrawal. Feel free to ask your broker what to expect and how long payment may take. In most cases, there will be a few days of waiting for withdrawal approval, followed by a few more days of waiting for the actual payment to show up in your account. Some payment methods do take longer than others. For example, credit card payments are faster than bank wire transfers. Knowing what to expect will save you the hassle of getting worked up when your withdrawal is not received within minutes.
Another common problem is related to bonuses. Bonus money is offered to nearly every depositor, and it certainly can seem a sweet deal initially. Who doesn’t like free money, right? Stop for a moment and think it though. Can any company really afford to just hand out hundreds of dollars to each client? No, of course not. You can benefit from bonuses, but only if you are willing to meet the requirements necessary to claim the funds. These requirements typically consist of the need to meet a specific trade volume level. For example, you may need to trade the bonus amount 30x over before being able to withdraw a bonus.
If you’re concerned about bonus-related problems, simply decline those funds. You may need to make it known before depositing that you would prefer not to take the bonus. Information related to this, and all other specifics related to a trading platform, should be provided within the terms and conditions. Consider reading these prior to making a deposit with any broker.
Your broker is neither your best friend, nor should they be your enemy. While each is in business to make money, they are able to do this without running any scams. Some brokers are absolutely better than others, just the same as any type of business. Optimal selection will help you to avoid problems, but even when you have selected a great binary options broker, there are things you can do to ensure a hassle-free experience.
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Between 74-89 % of retail investor accounts lose money when trading CFDs