When a trader first starts researching the binary options broker they are interested in using, they do a Google search for “xyz broker review”. Depending on how long the broker has been in business, they are going to find accusations of withdrawal problems.
The question traders have with these message board posts is, Are they accurate? Are they true? You can read on Scam Broker about the types of fraud that exists with binary option brokers.
There are two reasons traders complain about a broker when trying to withdraw profits. One has to do with the withdrawal procedure, and the other has to do with bonus money.
The withdrawal procedure is something traders do not consider when opening an account. All brokers have the same requirements, and those requirements are documentation to prove that you are who you say you are, and that your address is correct. The broker has to also address anti money laundering laws. These are requirements demanded of the brokers by EU Member Financial Regulator CySEC and other financial regulators.
Here is a sample of documentation the CySEC regulated broker 24Option.com requires.
- Proof of Identification – Passport / Drivers License / National ID
- Proof of Residence – Recent utility bill dated within the last six months, current local authority tax bill, bank or credit card statement.
- Credit / Debit Card -If you wish to fund your account with your credit/debit card, please scan the front and back sides of your card. For your security please black out the middle 8 numbers that appear on the front (and back if necessary) and the CVV (security code) on the back.
- SWIFT Confirmation – If you wire transfer funds to your account, please upload the SWIFT confirmation from your bank.
- Other – Other documents which are requested by our compliance department.
So next time you hear someone complaining that a binary options broker requires them to prove their identity before they withdraw their money, think twice who is the one trying to commit fraud.
The bonus money is a major problem with binary option brokers. Many traders see 50% bonus or 100% bonus and think they can deposit $1,000 and then withdraw $1,500 and get $500 for nothing. As we all know, there is no free lunch in this world. And no broker is giving you 50% for nothing. CySEC in Europe banned the use of bonuses from brokers in 2017.
If we take a look at the bonus policy of a scam broker, you will see how traders can get confused.
The bonus amount cannot be withdrawn until the minimum trading volume requirement, equivalent to 40 times the value of your bonus amount, has been met. For example, if you received a bonus of $500 you must generate total volume of $20,000 before being eligible to withdraw your bonus.
Most traders do not read the terms of the bonus which varies by broker. In general, bonus trading volume is anywhere from 10 times to 50 times, which in essence makes bonus money more headache than it’s worth.
The Solution to Withdrawal Problems is to go with a reputable broker.
Click here to see an updated list of the Best Binary Option Brokers.