Work in the financial markets is risky in general. But traders manage to reimburse the trading risks by the thorough analysis of the market’s dynamics and the qualitative management of a capital. But it is much worse, if the so-called non-trading risks appear. It occurs when the tested binary options’ brokers become unavailable for some reason and it becomes necessary to trade on the unknown platform. This factor can’t be reimbursed. We’ll explain what it means:
- Forced connection breakage between the trading platform and the server by the options’ broker during the conclusion of a deal. It is done to block implementation of a contract with a higher profitability;
- Unilateral adjustment of the underlying asset’s price, regardless of the existing market’s prices. It provides a possibility to manage prices by the time of expiration, attaining the negative result of a deal;
- Arrears or complete rejection to pay legal profit to a client using evasions, for example, block of a trading account, or suspicion of fraud.
Security methods for client
It is natural that the licensed brokers don’t have all these awful things mentioned above. For this reason, matter of the company’s reliability is very important. In the opposite case, a broker that is willing to commit a fraud can not only steal the trader’s time, but also buries the results of a profitable work. But how this reliability can be checked? Trusting virtual ratings or group reviews is unconstructive. Both of them can be faked successfully.
The only guarantee against a fraud for a client can be the binary options regulation. Certification of a broker is not easy itself. To be certified, brokerage houses need to shift their activity in the legal field. In addition, certification conditions include insurance of all traders’ deposits.
Therefore, control over the broker’s activity with the special body gives a broker the certain reliability warrant that extends its force on the clients who trade binary options on the broker’s platform. It is some sort of the quality assurance. It has resulted in the growth of a number of the certified companies.
Analysis of market’s regulators
As we have mentioned earlier, binary options require not only a trade itself, but also the thorough analysis of all the consequential details. In particular, the licensing matter. Brokers realize that the regulated binary options’ brokers stir more interest because traders are attracted to the company that respects their rights. For this reason, brokers strive to get such license at all costs, aiming to raise trust.
- For example, they often display licenses that are issued for a usage of the trading platform and not for a conduction of the broker’s activity on their websites;
- Or instead of license they show the company’s admittance to work without having any obligations;
- By the way, it is very easy to check the authenticity of a license by its published number on the regulator’s website.
In other words, we recommend studying all regulatory documents on the broker’s website before agreeing with to the terms of work. This is because this matter influences your profit directly.