If you are already a binary options trader, a new and rising financial tool among most traders, you probably know what we are talking about.
If you are a novice trader or you have just approached the world of binary options, then we strongly advise you to read the whole article carefully.
The most important decision that every person who approaches binary options must take at the beginning of his career as a trader is definitely that relating to the choice of the broker.
The Internet is now full, if not saturated, of binary options broker sites: google are “binary options brokers” to believe and see for themselves. Thousands and thousands of results, broker brokers. This excessive crowding of brokers is mainly due to the fact, in no small measure, that the binary options trading business is highly lucrative.
How do binary options brokers gain? A legitimate question that many traders ask themselves and to which we will try to answer.
Always new companies decide to throw themselves headlong into this new financial instruments industry. Positive for a future trader is definitely the choice: you will be 100% sure to find the right broker for your needs. The other side of the coin, on the other hand, is that sometimes among the many brokers available they hide some frauds or even illegal ones.
But above all, it has come to create a situation where brokers always find themselves competing with one another. And the problem for the trader in this case is that sometimes some brokers can resort to “unethical” methods to convince a new trader to make a payment on their platform, instead of choosing another rival.
1) Your account manager will guide you step by step in every single operation you do
Many brokers often and willingly promise to combine an account manager with the newly registered trader; account manager who will guide the trader step by step in their daily operations.
Unfortunately, in most cases, it’s a half-truth: it’s true that the best binary options brokers nowadays offer an account manager to every single registered customer; but it is also true that the account manager can not completely follow a single client, day after day, operation after operation.
Of course, the account manager will most likely turn to you via email almost every day the most important economic news as well as signals for trading the platform (if this offer is included in your account); maybe you could even suggest some “safe” operation from time to time. But we’re sorry to disappoint you, the account manager will not call you every single day to advise you exactly what to do and when to do it. Even if, sometimes it is possible to obtain a service of this kind (on payment, of course).
2) You will have at your service an account manager even if you have made a minimum deposit
Another myth to dispel: you will not have an account manager in case of minimum deposit. In this case we intend to have an account manager who follows you and only you. It is practically impossible.
The account manager, after all, is a human being: not a robot. For the broker who hired it, the account manager has a monthly fee. So forget about now you can have one at your service without spending even an extra euro. An account manager is definitely an added value for every trader: usually it is an industry professional, with a vast knowledge of the world of online trading.
A professional who can offer you lessons face-to-face by video conference to teach you the best binary options strategies and how to best use indicators and oscillators of technical analysis, so as to be as profitable as possible. But it does not end there: often an account manager will give you advice on your trading strategy, analyzing your operations and where you can improve your operations, thus increasing your profits.
Usually to get a service like this, of this level and quality, you will often have to pay a different amount compared to the minimum bonus (unless there are special offers in progress).
3) Yes, we make money only if you make money
Typical bar for commercial purposes only. Some banner ads often contain this phrase, which turns out to be only half true.
The purpose of this sentence is to make you believe that the broker has as only and only interest to make you earn and earn; because if you earn, the broker gains. And it’s true. But the opposite is also true. The broker, for about 90% of profits, gains from the volume of transactions carried out by its customers (regardless of the result of their operations).
So it’s a half-truth: the Broker is concerned that the trading volume of its customers increases with the passage of time. Here is explained why they offer educational services or even account managers to their customers. If a trader earns profits, it means that he will have more money on his account. And then it will carry out transactions with larger sums of money; all this brings us back to the trading volume: it will increase, as will the profits of the broker itself.
4) Regular profits are insured
Beat that should be followed by a cough. We are faced with another half-truth. Yes, it’s true: if a trader uses the right strategies, bases his decisions on his knowledge of the market (which he can always expand and improve through study and application) and does not let himself be taken by emotion, he can really earn a monthly recurring figure.
Indeed, theoretically in the world of possibilities and probabilities it is also possible for a trader to become a millionaire in not even one month of operations. The fact is that, if there is the possibility, it is not said that it comes true. To become profitable long-term traders, it takes time, constancy and study.
For this reason regular profits are not insured: it will be up to you and your ability to make such a sentence become a certainty. The important thing is to always use your head and not be in a hurry: the two golden rules to get any result you want.
5) Withdrawal of any sum (good or bad) guaranteed in 24h
We will play repetitive, but it is another half-truth. In this case, different factors come into play …
- Terms / conditions of your broker;
- Cash flow and withdrawal requests it receives;
- Sum of money you want to withdraw.
In fact, if you request the withdrawal of, for example, 2000 dollar surely you will have to wait more than 24h. First of all it is good to know that the first time you make a withdrawal, you must send your identity documents (via email of course: just scan and attach them).
Then the higher the sum, the more likely it will have to wait.
Finally, it also depends on the broker’s cash flow: you may have made a simple request for a withdrawal of 100 dollar, but if another trader has requested to withdraw 10000 dollars, the broker will certainly take more time than normal. Usually waiting times vary from a minimum of one day up to a maximum of one week, at least for the most reliable brokers.
As you well understood, it is not always gold that glitters. The fact is that in a market as competitive as that of binary options, it may happen that some brokers decide to focus on aggressive marketing strategies that may prove misleading for future customers. After all, what is said, as examined, is true: partly, but true. A bit like in advertising: we always aim to show the best aspects of a product and to underline its strengths, versioning on the negative or less happy ones.