Do you know the segregated bank accounts evoked by binary options brokers on their websites? This is a great marketing tool that usually allows them to convince investors to practice trading through their platforms. Below, we will explain what the segregated bank accounts are, what they are used for and what their advantages are.
Many brokers maintain the funds of their clients on segregated bank accounts and you may be wondering what it is all about? In fact, segregated bank accounts mean that brokers that offer their services are regulated; they are transparent about their activities and they deposit their traders’ funds on “secure” bank accounts. These bank accounts are opened at recognized banking institutions and consolidate the client capital of a broker. The particularity of these so-called “segregated” bank accounts is that they are completely separate from the bank accounts of the company to which the binary options broker belongs. By separating traders’ money from the company’s funds, the broker does not put all its eggs in one basket and it is able to carry out the cash withdrawals of its traders regardless of the company’s financial situation.
Binary options scams are unfortunately common in the binary options industry; such scams are alike and are often committed by unauthorized, non-regulated or banned binary options brokers, which have no license or authorization that allow them to offer their services to traders. Traders who get scammed by these kinds of binary options brokers simply get their money stolen. Once the money is deposited in a trading account of one of these brokers, it is impossible for the trader to get his money back. Unfortunately, since the brokers that scam are not regulated by financial regulators, traders who have lost their money are not covered by any authority and find themselves helpless, unable to recuperate their funds. Therefore, one must be especially careful in choosing a binary options broker to avoid any risk of scam.
In order to avoid being scammed, it is strongly advised to open a trading account with a regulated binary options broker, whose parent company has the necessary authorizations required to legally enable it to offer binary options trading to traders. Regulated binary options are brokers that comply with the local financial regulations and the financial laws of financial regulators. This means that binary options brokers have segregated bank accounts that ensure traders that they can recover their money, regardless of the unforeseen situation that could occur with a broker. Note also that the regulators that have awarded their licenses to brokers and made them regulated have compensation funds that allow to the traders of authorized brokers to be financially covered in case they encounter difficulties to withdraw their money for example.
As we have mentioned in the previous paragraph, to avoid getting scammed when you get into binary options trading, it is important to choose a regulated binary options broker, simply because these brokers are among the best binary options brokers in the trading industry. There are many authorized and regulated binary options brokers but the 24Option and TopOption brokers are two of the most serious as witnessed by the number of licenses they each have, consisting of more than a dozen licenses each. Financial regulators such as the AMF (France), the BaFin (Germany), the CySEC (Cyprus), the CNMV (Spain), the CONSOB (Italy) or the FCA (UK), are recognized financial regulators that have issued their licenses to these binary options brokers.
In addition to choosing a licensed and serious broker with which you can practice binary options trading, when you become a client with a binary options broker listed on our website and you proceed to opening an account via one of our links, you become a client of one of our partners. This usually entitles you to a negotiated bonus on deposit. For example, opening a 24Option account or a TopOption account entitles you to a negotiated exclusive bonus on deposit equivalent to 100% of your deposit, while these brokers do not normally provide this kind of bonus to their new clients. The BonusBinaryOptions.net guarantee is also an advantage that you receive by joining one of the partner brokers in our website.