The binary options trading is on everyone’s lips. Whether on the Internet or on TV – the advertising promises high profits, which can also be achieved immediately by beginners. But is that at all serious or a fraud? This question has now gone to the bottom, starting with how serious the broker is.
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Since 2012, the number of brokers offering binary options at made my day has almost doubled. They shoot right from the ground and every trader wonders who can now be trusted. Basically there is, of course, no guarantee I read more here that a broker is reputable. Since there are now more than 100 brokers, the risk is correspondingly high that also black sheep mix. However, there are some characteristics that can point to a trustworthy broker. These include:
Regulation and deposit guarantee
A reliable broker is regulated and has a recognized deposit guarantee. However, it is not easy for traders to distinguish between normal and very good regulation.
One of the most reliable and well-known regulatory authorities is the British FCA (Financial Conduct Authority) as well as CySEC (Cyprus Securities and Exchange Comission) in Cyprus or Germany-based BaFin (Federal Financial Supervisory Authority)
In updated blog post person addition, the broker’s deposit guarantee is of great importance, because if this insolvency is registered and no deposit insurance can be provided, the damaged customers are not hedged and thus lose their capital. The website of the respective broker should absolutely be checked. If this is not shown transparently, customer support can also be contacted in order to get more information about deposit insurance.
Transparent cost and charge structure
Serious providers have nothing to hide. That is why they inform their traders about all costs and fees. The for more information prerequisites and payment terms are also clearly displayed and clearly defined in new customer or promotional bonuses.
A trustworthy broker offers traders a variety of this this hyperlink ways to contact them, such as a service phone number, an email address, or a live chat. Some brokers even offer customer support in German, which is an indication that the broker has focused on the market in Germany.
Can online brokers cheat?
In order to be able to answer this question, the first thing to start is how brokers earn their money. Like other brokers, they also earn their money with the “spread” between the purchase and sale price of an can try this web-site underlying. In doing so, the courses are indicated accordingly, which are very small (often only one cent). Traders are not concerned with this, since it does not play a role in the profit and loss calculation. Even if a few brokerage fees are calculated, this is irrelevant to the broker’s profit if many transactions are made on the trading platform. The issuer also earns the spread and shares the profit with the broker. The ratio in which the profit is distributed is not known.
If a trader my click site loses an option, this money does not go to the broker or the issuer. Rather, the broker “hedged”. This means that at the same time the trader buys a call option, the broker’s computer program acquires straight from the source into a put option to the same extent. As a result, profits and losses stand out, and only the profit from the spread remains for the broker.
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That the broker can make any manipulations in his favor is virtually impossible. Fraudulent brokers are an absolute exception, since brokers already earn very good money because of the trading principle of digital options. No broker