When trading Binary Options, security is always a big concern. This is especially true due to the fact that almost all online binary broker are headquartered outside of the U.S. Some may have U.S. call centers, but the financial records and trading activity is still reside internationally. If you are trading using the Binary-Option-Robot, then you must sign up for an account with one of their approved brokers, all of which are outside of the U.S. It is recommended that you sign up for the robot first, and then follow the steps for an approved brokers, as all options may or may not be available in your area.
When it comes to safety and security concerns, you must decide for yourself where to set your hard limits on how much personal information you are willing to share with an international broker. While the U.S. documentation regarding safety concerns when trading with binary options brokers does not recommend sharing information such as photocopies of photo I.D.s and credit cards, most brokers still require this information.
If you question them about this, the explanation you typically get is that these verification methods are necessary in order to verify your identity and prevent money laundering. However, what is to keep them from using your personal information to engage in money laundering themselves? In short, probably nothing. If you choose to engage in binary options trading with an international broker, please realize the risk. I am not advising you to imitate what I do on this blog. Rather I am sharing my experiences so you can benefit from shared knowledge and maybe even learn from my mistakes.
I would like to share with you a couple things that I have done in order to better protect myself with regards to the transference of money. While many sites promote using Netteller, I have read bad reviews of this service. At this point, I do not feel comfortable either recommending or using Netteller myself. I feel as though I have the most control over financial transactions using my own credit cards and bank accounts, instead of involving a third-party that may be less trustworthy than the international broker.
That said, you do not want to give out your main credit card information, nor do you want to issue the account number to your primary bank account. You need some buffers in place. I use a credit card that is designated for the purpose of funding binary brokers. I watch this credit card very closely online. Using a credit card offers some buyer protection and the ability to reverse the charges, which keeps those who accept credit cards more honest. That being said, the first card that I designated for this purpose was canceled due to suspicion of fraud randomly one day by my issuing bank. I have no way of knowing if the fraud suspicion was the direct result of misuse of my card information by my broker or not. It could have been an unrelated coincidence.
Using a separate bank account is just as important as using a designated credit card. When it comes time to collect your winnings, you will need to be able to do a wire transfer to receive funds. This part is a bit tricky. You don’t want to give our your bank account and routing number information only to find out month’s later that someone cleaned out your account. By using a separate account, you can use the designated account to receive the transfer, and then you can transfer these funds to a more secure account once the transaction is complete. The funds will only be temporarily available in the at-risk account. Depending on your bank’s policies, this will also reduce the risk of the company reclaiming those funds in the future. (I have heard horror stories of people receiving funds, only to have them taken away a week later. Language barriers make rectifying this situation difficult when the transaction is processed through an international institution.)
Other considerations for this account include making sure there is no other credit card or account associated that the bank can use for overdraft protection. It is better to pay an overdraft fee than to have the institution reverse the transaction and put you in debt for thousands of dollars you weren’t able to secure from them. Check with your banking institution to see how they handle any attempted reversal of wire transfers when the balance is below the amount requested.
The most secure solution that I came up with is a local product from my state’s credit union. They offer an account called CashPoints Global that is specifically designed to maximize fraud protection. I receive text notifications for all activity on this account. The most important feature is that money can be wired into the account, but it cannot be wired out of the account without my permission first. As this solution is specific to my local credit union, you may or may not have an option like this available. I would recommend talking to several banking institutions in your area to see what products are available. Who knows? You may find an even better solution in your own town.
Trade at your own risk,
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We are gearing up for our second phase of trading. We are excited about the Binary-Option-Robot’s new web-based platform. It is more user friendly and includes a handful of new features. Keep at watch for new trading videos as we begin Phase II of the Binary Robot Project!