How money is supposed to be made trading with binary options?
There is no doubt that binary options have become one of the hottest investments available online. Brokers have popped up indozens over the past three years and financial websites are covered with advertisements promoting 75% profits which can be gained in just a few minutes with this exciting new way of trading. Known as ‘all-or-nothing’ or digital options, binary options allow traders to purchase options in stocks, currencies, indices and commodities amongst other markets. They expire, after a predetermined amount of time, either in or out of a predetermined value of money. Typically, this can range from 75-85% for regular binary options, with losses starting from 85% of the investment.Successful traders have both started out with binary options or migrated to binary options platforms from forex or stock trading. They make money through a simple process of correctly predicting if an underlying asset will close higher or lower to win a predetermined amount of money. This is then happily withdrawn from the trading platform to their bank account or e-wallet. Whilst getting their hands on winnings is the single most important feature for most binary options traders, it is true to say that there is a fair amount of scepticism surrounding just how forthcoming binary options brokers are in actually providing these pay outs. Many traders have experienced problems with this and several brokers have become notorious in making it very difficult for traders to take funds out of their accounts once deposits have been placed in these.
How safe are binary options deposits?
Binary options deposits can be made in a number of ways with most brokers offering e-wallets, credit card funding and direct bank transfer. For new traders, many broker encourage a first deposit as soon as possible in order to enable them to begin trading with binary options. Of course, these traders will want to know that their deposits are safe and, more importantly, that they will still command control over these deposits once they have handed these over to the broker. This is where research and the advice of experienced traders will provide the primary source of information. By far the most important element to consider are the basics of whether a broker is legally registered and also if they provide the minimum security features when making the initial payment. As always, never provide your financial details directly to any third parties representing the broker and steer well clear of those with poor withdrawal histories as this may indicate a lack of cash funds behind the broker.
Why do people experience withdrawal problems with binary options accounts?
To be fair to many binary options brokers, there is always a ‘clearance period’ between executing a withdrawal request and receiving the funds through any of the payment methods. Many complaints actually occur within this period only to result in the payment being made within the next few days but give the impression of an unreliable broker to those who see the post. However, there is a difference between being able to withdraw and never receiving the payment and we will address some of the problems that have been experienced trading binary options with other brokers.One of the most common reasons for some brokers refusing to allow a withdrawal from a client is the inclusion of a bonus in the account. This is a cash payment, often up to 100%, which is made by the broker in to the account of a new client. Whilst the trader may go on to trade successfully, the terms and conditions stipulate that a certain number of trades up to a certain value must be executed before the withdrawal request is made.Another difficulty with binary options, experienced by new traders especially, is that a minimum withdrawal amount is often required. Since financial transactions cost brokers money, many seem quick to accept deposits but slow to reverse the pay-outs. A consistent complaint regarding the banc de binary withdrawal process points to this even though they have a fairly low withdrawal minimum of 100 USD. The main concern for many disgruntled clients is the withdrawal connected to the bonus which requires a large number of trades in order to be eligible for release. Complaints have also been centred on the provision of a ‘free’ demo trading account which requires a deposit. However, if the client wishes to redeem their deposit without real-money trading it will be subject to a 7% handling fee.
After reading this is it safe to trade with binary options brokers?
Many new traders are rightfully worried about both the safety of their deposits and also whether they will be able to redeem their funds when they want. Since there is a vast amount of information relating to scams brokers and customer complaints, it is understandable that many may not want to risk transferring their funds to an unknown and unreliable broker. However, for every bad experience it is reassuring to know that there are many positive binary options trading experiences and many thousands of traders who do not experience problems in withdrawing their funds or fear for the safety of their deposits. These traders have likely made a number of decisions which has enabled them to source a reliable broker and deposit with the peace of mind that they will be able to redeem this and any winnings whenever they choose.
- Check the terms and conditions of the broker to make sure that you are fully aware of the facts. Most reputable brokers will have this available on their website and it should clearly stipulate the withdrawal procedures and the minimum withdrawal amount. Bank of Trade provide this clearly to all clients and ensure that everything which may have caused problems with other brokers is clearly explained to all new traders.
- Think about whether accepting a sign-up bonus is really going to worth it. Whilst 100% bonus sounds amazing to many new traders making smaller starting deposits, it is worth remembering that these often require a minimum trade-through in order to stop people simply signing up and withdrawing the ‘free’ cash. Many new traders fail to read the small print regarding this and end up in a situation where they are unable to retrieve funds from their account until they comply with this agreement.
- Thoroughly research your chosen broker and contact its technical support if necessary to discuss the withdrawal options available. Make sure that you understand any restrictions which may apply as well as noting any difficulties that other traders have experienced in trading forums before committing the deposit.
- Certify the broker’s credentials. Bank of Trade provides full and transparent information of its credentials as a reputable broker with the required cash reserves to cover all winnings, however some brokers do not. Make sure the location and reputation is agreeable and also be especially cautious when providing any requested personal information such as I.D and bank details. A good broker will never compromise the security of your depositing method and those that request inordinate details are likely to be involved in a scam process. Whilst many brokers will require documented I.D, always make sure to eliminate your full banking details when transferring documents via email and be especially cautious with some forms of money transfer such as Western Union.
- Finally, check that you understand the charges that a broker levies on withdrawals. It may be that this has a monthly maximum limit, or each withdrawal has a processing fee.
There are some binary options brokers who give the industry a bad reputation when it comes to the withholding of withdrawals. Many of these will instantly divert unsuspecting new traders to the small print of their terms and conditions in order to justify non-payment. Others will point to the conditions attached to accepting a sign-up bonus whilst others may simply be a downright scam.Binary options trader, however, can protect themselves from these problems by conducting thorough research on potential problems which may be associated with binary options withdrawals. The most simple of all is to review the experiences of other with a straightforward Google search or close investigation of a broker’s terms and conditions in relation to withdrawing both the initial deposit and winnings. Bearing in mind, however, that all financial transactions will experience a clearance delay, this prior research will help avoid the difficulties experienced by a minority of binary options traders.When searching for a broker who will not cause problems for clients wishing to withdraw the reputation, location and financial standards need to be taken into account. Several high-profile complaints, including banc de binary withdrawal procedure, have made new traders wary of a binary options scam. However, more customer-orientated brokers such as Bank of Trade have established a solid reputation as providing an excellent overall withdrawal procedure and consistently provide their clients with a reliable depositing and withdrawal experience.