Thursday, 3 December 2015

Should You Trust Binary Option Brokers Account Manager?

Personal account managers are used as a way of attracting new binary options traders but are they working for you or the broker? Should you be listening to what they have to say?

Personal account managers are used by the brokers as a way to attract and retain binary options traders. The benefit of a personal rep, someone who is there to take care of your account needs, answer your questions and help you get started is unquestionable. What is questionable is the lengths to which some account managers will go. I think it’s understood that they are there to sell you binary options and that’s OK. They can tell us all about trading and why this broker is the best but should they really be offering us tips, advice and signals. The manager works for the broker, the broker makes money when you lose so there is a clear conflict of interest in a manager helping you to win. The casinos don’t let the dealers help the players do they? You can’t ask him if you should hit, or split or double down can you? Then why is it OK for your manager to tell you what to trade?

Account Managers Are A Good Thing, Right?

Account managers can be a good thing for both the broker and the trader, don’t get wrong. The broker needs them to help retain clients and get them to trade. The clients need them to answer questions, give help and provide support. In the end the job is the same for both, making sure clients are comfortable with trading and trading real money. The manager should show you the ropes, and to give new traders a little push if they need it, but the line is crossed when they start to give out tips. Before taking any tips, regardless of the source, you have to ask yourself, is this person qualified? It takes a certified investment adviser to provide trading or investment advice, not at all the same as being regulated as a broker. Without such certification it is illegal for brokers and account managers to give advice, provide tips or signals and especially to trade your account.

Why Are Account Managers So Annoying?

The problem is that there are no set standards among binary options brokers. The very term is confusing. A manager, by definition, should be able to “manage” your account or have some active role in your decisions. Some brokers use that to their advantage. A change in status to account representative or liaison would be better. Along with that, regulation should include no tips or advice, the manager should be there for informational purposes only. You can ask them questions, use them for a reference or for educational purposes. They should be able to help you with account verification, making deposits and withdrawals but not to give you tips.

Account Managers, The Bottom Line

Account managers are a good thing, it just depends on the broker. To be honest, I don’t know how far I would trust any trading website if there wasn’t someone I could talk to. The internet is full of scams, not just in binary options, so just trusting some web page is not recommended in any situation. The way your account manager treats is another good way to know if the broker is legit or not. A bad broker will use the manager to take advantage of you, get you to trade more, lose your money on the tips he gives you and then ask for more deposits. A good broker will use the manager to help you trade by giving you tools and information or providing some support but they will not give you tips, advice or trade your account for you. Education or accepting a little nudge in the right direction is one thing, accepting an account managers tips or letting them trade your account is a whole different ball game. The bottom line, you should trust your manager for help, but not for your tips.