Plenty of options brokers are serving customers on the Internet now. Not all of them are licensed and you must avoid those that are not at any cost. Among the licensed ones, only a small group of them do their business transparently.
One we discovered is Binomo. Why do I tell that? A team of options traders and me introduce some tests to determine some methods applied by ‘legit’ options brokers to steal money from their clients. One broker coped with the test. So, what instruments do these brokers apply? Keep reading.
- 1 #1 Using Prices to Direct Trade Results to their Advantage
- 2 #2 Use the Expiring Time of the Trade to their Advantage
- 3 #3 Hunting for Great Investments Put on Single Trades
- 4 #4 Server Disconnections a Moment Before Trade Expiring Time
- 5 #5 Withdrawals Oddly Disappear
- 6 Options Broker that is Worth your Trust
#1 Using Prices to Direct Trade Results to their Advantage
Each trader has their favourite asset and trading manner. These have been effective on several platforms. Nevertheless, the broker has the technology that you are applying to trade. As a result, they are able to change prices as they wish.
So, in case you have numerous winning trades, the broker may determine to apply false prices to ensure you that your trades begin to lose. This cunning usually includes changing the prices suddenly by only one tick just before the expiring of the trade. To discover this cunning, you need to use an alternative platform like MT4 and monitor it simultaneously with your broker’s platform matching the price changes in real time.
#2 Use the Expiring Time of the Trade to their Advantage
Options always have an expiring time set in advance. Therefore, when joining in a trade, it is critical to pay attention to the timer. Does the order get implemented at definitely the time you make it start?
Does the timer work correctly? And eventually, does it expire at the specified time? Some brokers will exploit the timers to work faster or slower to make sure that your trade finishes up with a loss bringing money to them.
#3 Hunting for Great Investments Put on Single Trades
Brokers realize that insignificant winnings create your belief. They bait you to deposit bigger sums in the further trades. But as soon as you deposit a bigger sum, the trades generally go differently.
This is a strategy applied to guarantee that you stay on their platform for trading. They will tempt you with minor wins to make you believe that you are earning money via trading options. When only you deposit a bigger sum on a single trade, their next step will be to take your money to refund your wins and a lion’s share of your account balance.
Such brokers are sure that greater part of traders who lost money in such a manner will probably return with a new deposit making attempts to win back their money. And this is the beginning of a new cycle.
#4 Server Disconnections a Moment Before Trade Expiring Time
This is a standard method used by dishonest brokers to steal from their clients. As soon as you have put your order, you will follow with delight how the price goes as you need. But when the trade expiring time comes, the broker’s server disconnects. This might be an error in the web connection on your side. Yet, this does not signify that you failed with your trading.
Keep in mind that the markets move constantly. When the connection is restored (generally, it may take not more than a few seconds), you will see that you lost.
#5 Withdrawals Oddly Disappear
Plenty of options brokers will have a certain timeline, during which withdrawals must be fulfilled and sent to client’s accounts. In case this timeline ends, it is anticipated that you are to demand explanations.
The customer support service should assist you to return the money lost. Dishonest brokers generally disappoint their clients with the help of intractable support tickets until the time when the client gives in. Considering this, every time you fulfill a withdrawal, ensure that the receipt about the transaction has been formed.
Furthermore, ensure that the broker you are cooperating with has a technology to let you monitor the withdrawal process.
Options Broker that is Worth your Trust
Starting from 2014, Binomo has provided options traders with a great service on the basis of absolute transparency of operation. I have been a trader on this platform for more than a year at the moment, and after applying these tests to check whether brokers steal from me, I discovered that they operate transparently. Create a Binomo practice account now and begin to trade. Check everything with tests on your own.
May the force be with you!
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