Wednesday, August 1, 2012
Sometimes pulling your money out of your binary broker account can be a challenge. I often get questions on the best way to do this.
Probably the best way is to deal with NADEX and don't work with any binary brokers. NADEX is regulated, and you can get your funds fairly quickly as you can with any type of regulated trading account. (Of course even regulated trading accounts can at times leave you high and dry - at least for awhile. Just ask those who had accounts with MF Global, and more recently PFG Best.)
The problem though is that most of us traders like the variety of choices we have with unregulated options. We like to choose our own strike price instead of having to pick between 3 or 4 strike prices chosen for us in advance of our trades! If NADEX ever offered all the frills that unregulated options offer, my guess is that most unregulated binary options companies would be out of business within a year!
However, there does not seem to be much chance of that happening. So, what can we do as traders? One step you can take with your binary account is not taking all of your money out at once. We have noticed that you get the most problems with binary brokers when you are attempting to close your account with them. They really don't like to lose customers (does any business?), and seem to hang on and try all types of stalling strategies to get you to change your mind.
So, instead of pulling all your money out, just make a partial withdraw and then do a few more trades before you pull more money out of your account.
Personally, I don't ever close a trading account (of any kind) once I have it open. With regulated accounts, it is such a hassle to set them up. With binary accounts, I don't want to tip them off that I might be taking my business elsewhere. I must have 5 different binary accounts other than the one I actively trade that have a few hundred each in them.
One other thing you should be concerned with is bonus money. If a broker offers you bonus money, and you are looking to make withdraws rater quickly, you had better read the fine print. Most of them have stipulations on making ANY withdraws once you have accepted a bonus. They are not in the business of giving away money so that you can quickly turn around and withdraw it. These binary brokers would go out of business quickly if they allowed that.
Normally, when you accept bonus money you have to trade your entire account balance 20 times or more before you can withdraw ANY money out of your account. So yes, it locks in the money you deposited with the broker for quite a while.
On our team we teach folks how to make spread trades that can turn your account balance over a number of times without having to do a lot of trades. Even so, most of us refuse the bonus, so that we can make partial withdrawls as soon as possible.
One last thing, there is some safety in numbers. If you are part of a group, they don't want to lose all of your business. If you are a lone account, they may not treat you as well.
For my complete course on binary option trading see:
Hundreds Daily With Binary Options