Is Bank Of Trade A Good Or Bad Binary Options Broker

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Bank Of Trade

Broker Bank of Trade
Website URL http://www.bankoftrade.com
Headquarters Marshall Islands
Support Types Email, Fax, Telephone, Live Chat, Skype
Languages English , Russian , Arabic , French , German
Trading Platform SpotOption Trading Platform
Minimum 1st Deposit $100
Minimum Account Size $100
Minimum Trade Amount $25
Bonus 50% to 100% On First Deposit
Deposit Methods American Express, VISA , MasterCard, CashU, Wire Transfer
Trading Methods Classic Binary Options, One Touch, 60 Second Options, Long Term Options, Pairs Options
Number of Assets 160
Option Types Currency , Commodities , Indices , Stock
Overall Score 88/100

Based in the Marshall Islands, Bank of Trade is a new binary options trading platform, owned by a holding company called Intelligent Entertainment Corp. The firm made their debut into the binary industry earlier this year. Working with experienced individuals in the financial sector as well as the legal sectors, Bank of Trades’ aims are clear. They intend to provide their clients with the most advanced and up-to-date technologies offering a user friendly and comfortable environment.

Target Market & Customer Support

Recognizing that their clients come from all over the world, Bank of Trade offers support in as many languages as possible. These include Arabic, English, French, German and Russian. Although the list of supported languages is impressive when compared to some of the leading brokers, we hope in due time more languages will be accommodated.

Customer support is pretty impressive at Bank of Trade even though they are young contenders. To establish the quality of a brokerage firm a potential client need only contact their customer support through email, live chat or phone. It’s recommended to have a list of questions or queries and the level of response as well as punctuality of response can be good indicators in which to test the quality of a brokerage firm.

Trading Platform & Features

Bank of Trade is using the SpotOption Gen 2 platform. This platform is not only popular among brokers and traders alike but is also easy to use and has a proven track record for its efficiency of use.

With this platform you can trade the following types of binaries:

  • Classic High/Low Options
  • One Touch Options
  • Long Term Options
  • 60 Seconds Options
  • Pair Options

The platform also allows traders to extend the expiry time of their trades with the “Rollover” feature for a small premium. And if they feel optimistic about their trades, they can also choose to double their investments with the “Double up” feature.

Markets Coverage

The range of underlying assets currently covered by Bank of Trade currently number around 58 different types of assets covering commodities, currencies, equities and indices. Together with the different types of trading contracts provided by the broker, traders have close to 200 different combinations of trades to choose from.

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Trading Accounts (Benefits, Funding Options)

As for trading accounts, traders at Bank of Trade have a choice of four types of trading accounts, namely:

  • Beginner Account (Minimum Initial Deposit of $100)
  • Professional Account (Minimum Initial Deposit of $1501)
  • Shark Account (Minimum Initial Deposit of $5001)
  • Elite Account (Minimum Initial Deposit of $10001)

With the exception of free trading signals and the percentage of welcome bonus offered, all the accounts enjoy the same benefits.

Payouts

The payouts range up to 87%. However, this will also depend on the assets as well as the type of trading contracts traded. Nevertheless, what they offer is still a few percentage points higher than what most other brokers are offering.

Scams and Blacklist

Scams are unfortunately all too common in the field of binary options. Dishonest brokers and reviews, or rigged robots and other auto trading services – the scams can come in many forms. So we feel it’s necessary to create this blacklist and list all known frauds and dishonest techniques in one place. We also go through the steps you can take to identify a potential scam and how to deal with the situation after the fact if you’re already a victim. If you know or suspect something is a scam, and we’re missing it on our blacklist, please let us know and we will look into it!

Why Are Stories of Scams So Common?

When any new financial instrument or form of trading first emerges, a whole range of businesses tend to get involved. It’s a fact of life that some of those product providers are going to be more trustworthy than others. This is certainly true of binary options. It is, after all, an accessible and popular method for individuals to trade the markets. What’s more, at least in their early days, binary options trading platforms tended to operate under the radar of the regulators and from any country over the internet – so it’s hardly surprising that unscrupulous operators seek to take advantage. Thanks to better regulation, a strong online trader community and honest reviews, it’s now a lot easier to tell a scam from a legitimate broker. But as with any international online marketplace, there are still some shady outfits who will leave you with less than you bargained for. So what are red flags to look out for? Here are the points to consider as you go about choosing your binary broker.

MyChargeBack.com are a company who specialise in helping binary fraud victims recover their money. They liaise with bank or credit card firms in order to get charge backs made to reclaim deposits. They will tell you if you have a valid claim via a free consultation.

Are Binary Options A Scam?

The term “scam” covers a wide range of behaviour, from providing misleading information to lure you in, through to vanishing account balances – and even dishonest trading advice. Likewise, a particular broker might not be technically fraudulent in its behaviour; it’s just that the service available on the platform (such as highly unreliable uptime or failure to reimburse funds in a timely manner) means that this is a broker that really ought to be avoided.

In all of these cases, the problem isn’t with binary options as a concept, it’s with the broker.

So it’s a matter of doing your homework before you commit to any particular platform. User reviews can be helpful (if they are genuine), but always treat such reviews with scepticism – and never make a decision on the basis of testimonials published on the broker’s website. Even trader forums can be problematic – look closely and you’ll often find that the forum is an offshoot of a particular broker’s website. Independent, thorough and comparative reviews are the safest way to ‘scam-check’ a broker. Ideally, focus on review sites that allow and encourage real-life users to get in contact and report and problems with particular brokers, so you can be sure that what you are reading is up to date.

Trusted Brokers

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Regulation

The UK’s Financial Conduct Authority (FCA) does now regulate binary options. They have already created a list of unauthorised firms. While they are not calling them scams, they are making it clear that these firms are breaking the law by trading with UK visitors – so they are best avoided. The full list can be found here: FCA Unauthorised List

By contrast, the USA along with most other EU countries do regard binary options as financial products. Depending on where they are based, many platforms will, therefore, be subject to oversight from a regulatory body. Examples include the CFTC in the US and CySec in Cyprus. A platform’s regulatory status can be a highly valuable trust-indicator for traders seeking to avoid scams. It shows that the broker has to abide by certain minimum standards when it comes to service and transparency.

Marketing “Too Good To Be True”

Taken in isolation, the act of placing a trade should be a straightforward one; and indeed, the usability of a platform tends to be a big selling point for brokers. Although this aspect of binary options is “easy”, it’s something quite different to claim that profits are guaranteed. Realising a profit through regular trading requires knowledge of how markets behave, the ability to read market conditions and an understanding of strategy. If the risks are downplayed – or outright false assertions are made (along the lines of “95% trades are successful”), these are false assurances. It’s a sign that the broker may be less than scrupulous in other important areas and that the platform ought to be given a wide berth.

Terms and conditions

Transparency is essential. Read the smallprint, and be especially wary of needlessly convoluted procedures for withdrawal of funds. Terms regarding your initial deposit can be another source of contention; for instance, if you are denied access to the deposit until a certain number of trades are made – so your money is tied to the platform from the moment it is handed over. This deposit retention is often part of wider terms associated with a ‘bonus’. CySec have sought to ban these sorts of terms by stopping the use of ‘deposit match’ bonuses. Non-CySec brands are still free to use them however, so T&C’s must always checked.

Cold calling

These tend to fall into two categories. The first is where you are called out of the blue and invited to sign up to a particular platform. The second occurs where you are already tied to the platform and you receive a call (or email) from a “senior broker” pointing you in the direction of particular trades. Reputable brokers do not need to make cold calls. Bear in mind “cold calls” might include emails too – any form of unsolicited approach should be considered a “cold” contact and be treated with extreme suspicion.

Channel sales

You should always be clear about who you are dealing with. In some situations, you might visit what appears to be an actual broker’s site, click the link to sign up only to be redirected to another broker. Alternatively a trading “service” may dictate that you use only their recommended broker. These “funnel” sites are sometimes used as a front by brokers with a poor reputation, or are working alongside them to dupe visitors (often using the misleading marketing mentioned above). A good broker will be upfront about its identity from the outset.

Managed accounts

It’s one thing for a broker to give you access to the data and analysis tools to work out your own strategies (in fact, this is one of the signs of a great platform). It’s quite another for that broker to also offer trading advice. After all, with ‘over the counter’ binary options brokers, you are betting against the house; if the ‘house’ is making the trading decisions for you, it’s hardly likely that those decisions will be in your best interests. This form of “upselling” is often the most lucrative for the broker, and is usually the where traders lose the most. Encouraged by an “account manager”, traders are advised to deposit beyond their means and to over trade. On occasion large accounts will be wiped out in hours. The “advice” goes against any sound money management, and increases risk hugely. Always take responsibility for your own trades. Never allow a broker to make trading decisions for you.

Price Manipulation

There has to be a fair and transparent benchmark against which the broker sets its prices. This benchmark should be what’s happening in the real world; i.e. real-time market prices. If the broker reserves the right to set its own prices, you can assume that those figures will be skewed against you; in other words, a loaded deck.

Blacklist

The brokers listed below have generated a lot of complaints both directly and on the forum. The disputes vary from upselling and encouraging traders to over trade, to non-payment of withdrawals and price manipulation. There is little recourse for traders to raise a dispute with unregulated brokers, so it is generally advised that you look for trusted binary options brokers – preferably regulated in your own country where possible. “Scam” has become widely used as a term to refer to any form of poor service, but it should be noted that many of these brokers may have done nothing dishonest or illegal, but have attracted higher than normal levels of complaints. If in doubt, trade elsewhere. There are plenty of honest brokers out there.

Robot And Signal Scams

These signal providers, or robot services, are either scams or not recommended for other important reasons.

Instagram And Facebook

Beware of scams operating on social media. Again, binaries are not a get rich quick scheme. There are a huge number of accounts promising to trade on your behalf and turn $2k into $8k in a week. If these claims were true, the people behind them would not need to be running ads or signing people up – they would simply trade themselves.

Screenshots of successful trades are exceptionally easy to get – even genuinely. But these operators are unlikely to even bother trading – once you send them money, it is gone and you will not hear from them again (unless they think they can get you to deposit more). Always select your own broker, and always take responsibility for your own trades – dont let someone else trade on your behalf. If you do not understand binary options, or do not have time to trade – then do not trade at all. These scams often prey on people who lack experience.

What To Do If You’ve Been Scammed

Do you think you’ve fallen prey to a binary options scam? Read on to find out what you can do if you’ve been scammed. There are many ways to help ensure that you don’t fall prey to a scam but the reality is that even if you follow all those tips there is still a possibility you will be scammed. If that happens, what do you do? Do you sit back and take it? Do you give up on trading? No, you need to stand tall and look out for yourself. Trading is good, it is rewarding and can lead to a life in which you don’t have to go to a job and punch a clock. You can’t let the actions of one broker, signal service, robot or guru dissuade you from that path. This article is a look at what you can do if you think you’ve been scammed. It’s likely that once an issue arises you won’t be able to get your profits, it is possible to get back your initial deposit but it might take some work.

MyChargeBack.com are a firm specialising in helping victims of binary options fraud. They help claimants to explain the incident to the bank or credit card company, so that they fully understand what has happened. Some banks are unaware of binary trading and are unwilling to listen to claims. MyChargeBack help in this situation. They have a solid record of recovery from genuine claims.

If you are not yet looking for third party help, here are some steps you can take yourself:

  • Document everything. The very first thing to do is to make records of everything you can. This includes the brokers, or SSP’s, terms&conditions, copies of any emails/Skype/live-chat you have had with them, confirmation of your deposit, turnover requirements for bonuses and your trading history. No matter what you do next, this information will be required in order to get satisfaction. What you do next will depend on the type of scam you have fallen prey to.
  • Try to withdraw. Broker won’t let me withdraw. Contact the broker and try to find out why they won’t let you withdraw. The most usual reason is that you’ve not sent in the right ID documentation, something required by international law, and is an issue easy to fix. The next most pressing reason why withdrawals are not allowed is due to bonus terms and turnover requirements. If you haven’t met conditions you will not be allowed to make any form of withdrawal which is why you want to keep track of all your trading volume and turnover. If you didn’t accept a bonus in the first place your documentation will help you prove it. A good broker will try to solve your issues, a shady one will give you the run-around.
  • Make your voice heard. Broker keeps giving me the run-around. If your broker is giving you the run-around and won’t address your issues the next best avenue for satisfaction is to let the community know what is going on. After all, it is the squeaky wheel that gets the grease. You can do this by posting complaints, with details, in forums like the one here at Binaryoptions.net. When you do this be sure to let the broker know and send them a link. They may not care, a sign of a shady broker, but when it comes to reliable brokers they will want to address your problems to avoid poor publicity. When posting complaints give as much detail as possible, just saying that a broker scammed you is not enough, proofs of fraud are what get results.
  • Contact their payments provider. The broker won’t help, now what? At this point the chances that you have been scammed, and not just suffering from miscommunication, are quite high. If you can’t get satisfaction from the broker you will have to take more drastic measures. If you deposited by credit card this may mean calling the card company and requesting a charge-back. Let them know the initial charge was fraudulent and that the company in question is not returning your contact requests for best results. The Times Of Israel reported that a victim of fraud was able to get a full refund of his deposit after contacting the financial institution that processed the brokers payments. They withheld payments until the broker satisfied the claims.
  • Contact the regulator. Time to call out the big guns. The great thing about expanding binary options regulation is that there is an alternative for many traders who think they’ve been scammed, you can contact the regulator. In some cases this can be a challenge as many brokers are located off-shore and hidden behind holding companies and virtual offices so be sure to do your homework. If the broker is regulated contact the agency overseeing them, if they are not regulated contact the agency which oversees financial regulation in your country. If the broker is regulated they will have to address your issue, to the satisfaction of all parties, in order to remain compliant. If they are not regulated at least you can be assured at least they will have a harder time scamming any more people from your country. At best cooperation between regulators could result in the broker being shut down for fraud.
  • Be persistent. Shady brokers like to hire people who are good at deflecting questions and complaints, don’t accept what they are telling you. It may take time but eventually you will talk to the right person, or persons, and your case will be addressed. What is most likely to happen is that the combination of your contact requests, forum complaints and charges with regulators will add up to one thing, the broker giving you your money back to avoid a much bigger hassle.

How to Spot a Trading Strategy Scam

The internet is loaded with ads, articles, companies and individuals trying to provide you with the next big trading strategy that will make you rich overnight. Take pause my friend, here are tips to help you spot the scam.

A System or Only a Strategy?

First and foremost, trading strategies aren’t really going to help you become a good trader. What you actually need is an entire system. When you make a trading plan it needs to cover how you will enter markets, exit markets and how you will manage your money. It also needs to tell you under what market conditions you do all these things. That is a system, it tells you everything you need to know about how you will trade. A strategy on the other hand only tells you when to enter and exit, and may not tell you under what conditions it works best or poorly. It also may not provide guidance on position size or whether you can trade multiple assets at the same time – issues which are very important to address. In other words, a strategy may have missing pieces of information you need to be successful. We need a complete trading system…but marketers are smart, so they can easily just call the product they are selling a “system” to make it sound more complete. But is it? Here are several things to watch for which could tip you off the product is probably a waste of money:

Boxed System

A boxed system is one where you don’t get to know how the strategy works – it’s an opaque “black box”. For example, the product may just be a series of indicators or a service that tells you when to trade, but not why. This isn’t going to make you a better trader, because you don’t know what is happening behind the scenes. If a product or signal service stops operating you are left with nothing. Even if you made money with the product/service you have to start from scratch all over again. Make sure if you buy something it explains how it works, so that eventually you don’t have to rely on the product/service.

Extremely High Win Rates

Is it possible to have a 90% win rate? Absolutely, yet it is also possible to lose money with a 90% win rate. Stats are easily manipulated to tell partial truths or fabricate lies. Other popular tactics are saying things like “Made $500 in one day!” So what? That doesn’t actually tell you anything. If that was on a $1,000,000 account then making $500 isn’t so grand. And if they lost $3000 they day before, then making only $500 today and bragging about it is rather paltry. Read between the lines. What isn’t being said? To understand performance you need several bits of information: Account size (capital), percentage return, amount at risk on each trade, amount of profit per trade, win/loss ratio, biggest winner, biggest loser, average winner, average loser, number of trades and period over which the strategy was tested/profitable.

There are also some other metrics that could help you out, but if you ask the company for these bits of information, and they can’t or won’t give them to you, be suspicious. You can usually get a sense of what vulnerabilities and tendencies a system has by looking at the above stats. One of the main things is that the strategy should be tested over a long period of time, and in all market conditions–up trends, down trends, ranges, volatile and sedate conditions. It doesn’t necessarily have to profitable in each of these environments, but it should have at least been traded through them all so you know that the system is profitable overall. Often marketers will only publish results for a period where strategy did very well. But this doesn’t give you a real idea of how the strategy or system works over the long-term.

  • Related to stats there is something else you need to consider. If a system is profitable, that result is based on all the trades. If you buy the product or the service, are you going to trade them all? On issue many traders face when subscribing to a signal service is that they don’t trade all the signals. If you don’t trade all the signals then your personal results could be dramatically different than the typical results of the service.

Only One Direction

Avoid a system that only trades in one direction, for example only buys assets but won’t short sell them. Markets rise and fall, you want to participate in both trends.

No Trial Period

You should be able to test a product and be able to cancel without a fuss if the service isn’t for you. Usually a quick trading forum search on Google will reveal what others have shares about a product or service. No trial, no deal. Don’t trust anyone, test things out for yourself. If they won’t let you, then be wary.

Final Words on Identifying Scams

A product or service shouldn’t make you reliant on it. It should show you behind the scenes so that eventually you can trade on your own. Good products will always have customers since there are people who don’t want to do the work themselves, and there are always new traders. There is no reason to make every customer totally dependent. Be wary of stats that are thrown out. Ask yourself what the stats aren’t telling you. Also, if the stats they provide are legitimate, then you’ll need to trade all the signals to take advantage and get results typical of the service. Of course remember though, past performance is not indicative of futures results. That is way it pays to do some homework, and make sure the strategy/system/service/product is based on a long history, and has proven itself profitable over all types of market conditions. Test out a product/system/service before buying it. If they won’t let you try, be suspicious.

Case Study – JV Affiliate Marketers

In this section we will look at how you can avoid being scammed by Binary Options JV Affiliate Marketers. Its not so hard, but requires you to let go of your emotions and examine things in a logical manner, as many of the scammers use emotional greed/fear tactics to get your money. Once you understand this you can quickly and simply save your time and money with these unscrupulous dolts. Some scams are simply comical in how stupid they are, while others can be very well done con jobs that lure you in with seemingly genuine people/systems/reviews which later you find are the exact opposite, as you look at your $0 balance wondering “Where did my money go!?”.

As you will see in the numerous scam videos, all you have to do is “NOT DEPOSIT” then these scams no longer work. So next time you see videos that are of a similar nature, just know they are supporting scam systems/marketers. Understand if they require a deposit they are fly by night and even if they were not they are supporting the scammers by the nature of requiring you to deposit with a new broker. So just refuse to deposit and they go away. Not the same stories kind of stories and promises over and over all to get you to sign-up to their “free” system/bots… They are not free you have to deposit and they get paid on those deposits… So remember limited time/fast money/can’t lose!/just fund your account = don’t do it!

In this image above you can see many of the scam systems are connected to each other on the same servers most often. These JV marketers have tons of these turnkey scams as they are very low maintenance. The reason you see so many of them is after a few weeks of the new story line wares off and becomes boring they will start production on another one and keep it all fresh and new thus avoiding the wrath of their old scams being complained about and those complaints shared with others. If they keep it new they avoid this along with the fact most newbies jump from one scam to another hoping one of these will work, which none of them do because trading is a learned skill/job… So again, understand their stories and how they work, and don’t deposit .

Case Study – Scams on Social Media

Social media is a “perfect” platform for scammers and can be even more insidious and convincing, and unlike the JV marketers these people will talk to you directly, but only to a point. Once they figure they can’t get any more from you or you no longer have value to them, they will un-friend you in a heart beat. The one thing they are all after is your money, so be on the look out for them asking for deposits or sign-ups telling you about amazing profits and opportunities, which will have you end up with empty pockets. Videos such as those used with both “The Green Room” and “FB Wealth Group” will pretend to be traders/friends, while they are really just out to get your money through either signups or even trying to have you pay them directly.

Also – if you see them mention anything MLM (Multi Level Marketing) related, they are trained to lure you in, so run the other way. These people don’t play around and will say whatever is needed to get you to sign-up and invest. There is a 45 minute long interview of a person that was scammed by both “The Green Room” and “FB Wealth Group”. We named it Binary Options Horror Story because that is exactly what it is in all its gory details. If you are new to binary options read, and absorb the above warning signs fully to see how they scammed people out of their money so it does not happen to you. Notice also how the worked with the brokers directly, which implies that they can be directly involved as well.

Scammers will repeat the common element of wanting you to deposit or even asking for money directly and from there you can tell them “no thanks” and make sure to unfriend them.

Binary Options Brokers Reviews

In this section of the site we’ll be looking at the most trusted binary options brokers in the market. We have undertaken in depth research in order to bring you our recommended brokers reviews. We are always pleased to get feedback on the various brokers, so please share your experiences with us.

There’s no doubt that binary options trading is an increasingly popular trading vehicle. This upsurge in trader numbers can largely be attributed to the fact that binaries are perhaps the simplest of all financial instruments. For the first time in the history of financial trading, a beginner trader can easily understand how to trade this financial instrument without having to undergo complex trading education as is the case with spot forex traders or CFD traders.

Naturally to cater for this exploding demand, there has been an increase in the number of binary options brokers offering their services to retail traders. As a result of this heavy competition many beginner traders often turn to binary options brokers reviews to help them select the right broker for them. These reviews will detail the services and background of the brokers. But in order to truly benefit from our reviews, it is important to understand how we compile them. To give our readers a helping hand, we have created this guide to explain what each section of a binary options review mean.

Breakdown of a Binary Options Review

A binary options broker’s review is typically divided into several main sections:

  • Broker’s Background
  • Regulatory Oversight
  • Trading Platform
  • Trade Types
  • Account Types
  • Deposits & Withdrawals
  • Customer Support

Broker’s Background

Usually appearing as the review introduction, this section will normally include a little about the history of the broker, the year it was established and information on who owns the company. The location of the broker’s headquarter is also included in this section. This information can reveal critical information about the broker.

For example, the year when the broker was established will indicate if this is a new broker or one which has been around for a while. A broker that has been around for a while is normally more trustworthy than a newly established broker. In addition, it is also a good way to spot a legitimate broker from a scam broker. Legitimate binary options brokers tend to reveal more about their corporate background whereas scam brokers tend to be evasive and will try to provide as little information about themselves as they can get away with.

Regulatory Oversight

For most binary options brokers, this section is one of the most important of their review. This is because a broker is that is regulated is more likely to be trusted than an unregulated one. When evaluating the broker’s regulatory status, it is also important to note which regulatory body the broker is regulated with. Not all regulatory agencies are created equal. For example, a license from the Cyprus Securities Exchange Commission (CySEC) carries more weight than a license obtained from the British Virgin Islands Financial Services Commission. This is because some regulatory agencies have more resources dedicated to ensuring that the brokers under their jurisdictions comply with all the regulatory requirements.

Trading Platform

In the binary options trading industry, you are likely to come across two main types of trading platforms, proprietary trading platforms and white labelled trading platforms.

White labels/Generic

White labelled trading platforms are generic trading platforms supplied by third party online trading solutions providers. This is the main reason why many of the trading platforms adopted by binary options brokers look so similar. Apart from some minor differences in the colour and design of the user interface, the platforms are essentially the same. For white labelled trading platforms, the leader is the SpotOption trading platform which is adopted by more than 80% of the brokers in the industry. Most brokers tend to use white labelled trading platforms as it helps them to save on development and support costs

Proprietary

The second type of trading platform that you will come across more occasionally is the proprietary trading platform. These platforms are developed in house to meet the specific needs of the brokers. As there are additional development costs involved, most brokers tend to shy away from having their own proprietary platforms.

“What we can gather from this section of the review is that if the broker is willing to expend resources to develop its own platform, then you can infer that this broker is likely to be more professional and dedicated to its long term business objective. In other words, a broker with a proprietary trading platform is less likely to be a scam broker”

Trade Types

The section on the trade types will reveal how many types of options contracts the broker‘s trading platform is able to support. Different types of trading platforms will support different types of options contracts. Most trading platforms will be able to support at least 4 to 5 different types of options contracts. Currently, the trading platform that can support the most number of option contracts is the SpotOption powered trading platform. Depending on the configurations which the broker has requested from SpotOption, you may be able to choose up to 8 different types of option contracts namely:

  • Classic Call/Put Binaries
  • Derivatives Options
  • FX/CFD
  • Ladder options
  • Long Term Binaries
  • One Touch options
  • Pairs
  • Short Term Binaries

Account Types

Binary options brokers generally tend to offer their clients a choice of several types of trading accounts. These trading accounts differ in the minimum deposit requirements, the benefits that they offer and sometimes the percentage returns. The lower level trading accounts usually require a smaller amount of minimum initial deposit. However, they will have limited access to other benefits such as trading education, a dedicated account manager and lower bonuses as well. Free withdrawals are usually limited to once a month. Any subsequent withdrawals made during the same calendar month will usually incur a service fee.

For higher end trading accounts like the premium or VIP trading account, they usually get extra benefits such as unlimited free withdrawals as well as expedited withdrawals. The percentage returns on these accounts are usually higher by an additional 4% to 5%. The major drawbacks of these trading accounts are the fact that you are subjected to a higher minimum deposit requirement.

Deposits & Withdrawals

To make their clients trading experience as pleasant as possible, most binary options brokers offer a selection of fund transfer methods. These methods typically fall into 3 main categories:

  • Credit/Debit cards
  • eWallets
  • Bank Wire transfer

The most convenient and secured method of transferring funds will be by credit/debit cards. This is due to the fact credit payment providers require vendors to adopt a high level of security. It is also convenient due to the fact that your credit card is usually linked directly to your bank account. This means funds can be transferred almost immediately from your bank account to your credit card. This same goes for withdrawals made through credit cards.

Depending on the eWallet used, eWallets are usually the fastest and cheapest way to transfer funds online. However, it should be noted that some eWallets are not available for traders in certain countries to the local regulatory requirements.

“Bank wire transfers are the most expensive way of transferring funds to and from your trading account. It also takes the longest for the broker to receive the funds as they are processed through the banks first. This option is typically used only when the above mentioned methods are not available to traders”

Apart from evaluating the various methods provided by the broker, it is also important to note the conditions if any are attached to the deposit and withdrawal of funds. For example, some brokers may require that you withdraw a minimum amount. Hence be sure to read all the terms and conditions before agreeing to any of them.

Customer Support

The third most important aspect of a broker’s review after its regulatory status and trading platform is the customer support service. The binary options market trades on a 24 hours basis 7 days a week. What this means is that problems can crop up at any time and not just during office hours. With this in mind, you have to take note of the operation hours of the customer support service. You want to be able to get assistance whenever you need it and not just during office hours.

Furthermore, you want to ensure that you are able to reach the customer support service through several different methods and not just through methods that rely on the internet. Bear in mind that if for whatever reason you lose your internet connectivity, you still want to be able to get in touch with your broker. This is where you can really see the different between a good broker and a bad broker.

“A good broker will try its best to ensure that it is able to resolve any problem that you may encounter as quickly as possible. A bad broker on the other hand is one that tries to make itself as scarce as possible whenever there are issues. If a broker does not provide live chat and telephone support, then you should be wary of the broker in question. “

Binary Options Broker Scams

So far what we have discussed will help you differentiate between a good broker and a bad broker. But what about scam brokers? How can you tell if a broker is a legitimate broker or a scam broker? Well, there are a few telltale signs which you can look out for which can be an indication that the broker in question is mostly likely a scam broker. Binary options broker scams may be perpetuated by different parties but their techniques are all similar. For example, they tend to make promises which they can never keep. If a broker guarantees that you will make a profit by investing with them, then the broker is almost definitely a scam broker. This is because in financial trading, nobody can predict the results.

“Another scam which some brokers use is by withholding your money because you fail to satisfy the bonus withdrawal conditions. While it is your responsibility to read all the terms and conditions, it is still unethical for the broker to withhold your money because of the failure to fulfil the bonus withdrawal conditions. This is the main reason why regulatory agency such as CySEC has banned binary options brokers from offering trading bonuses with conditions attached.”

Finally, watch out for brokers that do not provide any information as to their corporate background or location. Such behaviours are not typical of a legitimate broker that wants to establish a long term business relationship with its clients. You have to remember that the broker at the other end of the internet connection is just a faceless entity. So if you would not randomly give your money to a stranger that you meet on the street, why should you do the same for a broker that is so secretive about its owner/s and location?

Conclusion

Being able to make a trade successfully is only part of the journey to being a successful binary options trader. You also have to ensure that you are getting the best terms and product from your broker. It is important that you evaluate a broker carefully before committing yourself. The best way of going about this and without having to risk your money is by studying the reviews of the broker in question.

In addition, by checking out the reviews of the binary options brokers that you are interested in, you will be able to save money, time and effort in your search for the best binary options brokers. Hence, we strongly encourage you to conduct your due diligence and read the reviews that we have compiled so you can make a better informed decision when selecting your binary options broker.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Good Choice for Beginners!
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  • Binomo
    Binomo

    2nd in our ranking!

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