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  1. #1
    Rookie Member

    Can binary brokers ever ban you if you trade too successfully??? !!!

    As a newbie to the world of binary options trading I've been watching many you tube video's lately on the subject as well as reading through the various posts on this forum. I recently watched a beginning series linked from this site about how most binary options brokers operate. How I understand it is that if you win a trade the profit comes directly out of the brokers pocket, likewise if you lose a trade then the broker pockets your money you placed on the trade.

    My question is this...
    If, like many of the experienced traders here you are regularly bringing in a steady profit with a trading success rate of say 75% or above does anyone ever get kicked/banned by the brokers? After all if you are making a steady profit then the broker is making a steady loss on you. Or, do brokers let this go to avoid bad publicity and seeing as they are making bigger profits elsewhere on other users who aren't trading as successfully?

  2. #2
    Solid Member Daniel Rea's Avatar
    That would be a great problem to have my friend

  3. #3
    Specialist Member Million Dollar Baby's Avatar
    That is not the case always.
    BO brokers also earn through commissions. In that case whether you loose or win, they will be earning their commission.
    Now the brokers that earn money through traders, are highly unlikely to face a loss. It is because
    1- Whatever money comes into your pocket is taken from someone who lost that trade.
    2- If we assume that a broker has clients where half of them win and the other half looses, broker will still get the money because winners wont get 100% (usually the highest payout is about 80% to 85%).

    when it comes to small traders, usually the loosing percentage is higher which is why brokers tend to advertise and target beginners by giving high bonuses, "personal money manager" (LOLz) and similar incentives.

    So overall model is more likely to stay profitable where profit can fluctuate. There is no need to scam/close account of a trader if he wins. So reliable brokers wont do it.. But unknown brokers, dreaming of becoming rich quickly, may do so and that is why there are a lot of brokers with scam history.

  4. #4
    Legendry Member Michael Hodges's Avatar
    it's more likely the broker would do something to prevent large losses like limiting trade sizes and etc... they can't lose $10000 if you can't trade $10,000

  5. #5
    Rookie Member
    Yes they can ban you without a doubt and will if they are undercapitalized .Scam people out of their funds because their business model sucks then yes you are absolutely correct.. That is why you will see the vast majority of complaints on some of them. Even a regulated broker comes into this category quite often.
    Can anyone out there advice me on this new binary options concept. Looks very interesting. They are not a broker but an a binary exchange company. You trade among other traders and giving a high payout without any liabilities on their side.Please advice me after going through their website. binarytradexchange.com/referralregister?r=chXvPfuqTPI6bo034wlD

  6. #6
    Veteran Member Dan21's Avatar
    It is more likely they try to attract you with a huge bonus so you can't withdrawl for a very long time (if ever). This is why a newbie should stay away from bonuses. Most scam brokers tend to stop answering your calls or mails and you can't get what you won (and your initial capital).

  7. #7
    Veteran Member Dan21's Avatar
    Quote Originally Posted by steven71234 View Post
    Yes they can ban you without a doubt and will if they are undercapitalized .Scam people out of their funds because their business model sucks then yes you are absolutely correct.. That is why you will see the vast majority of complaints on some of them. Even a regulated broker comes into this category quite often.
    Can anyone out there advice me on this new binary options concept. Looks very interesting. They are not a broker but an a binary exchange company. You trade among other traders and giving a high payout without any liabilities on their side.Please advice me after going through their website. binarytradexchange.com/referralregister?r=chXvPfuqTPI6bo034wlD
    That’s why it is much better to trade with well capitalized and well recognized broker. If you start making big profits they will not ban you. Maybe some dirty tricks to prevent you making more money but no way to take your money won!

  8. #8
    Rookie Member dante66's Avatar
    I bet most traders wish they had that problem of being banned by a broker for being too successful.

  9. #9
    Veteran Member Dan21's Avatar
    Quote Originally Posted by dante66 View Post
    I bet most traders wish they had that problem of being banned by a broker for being too successful.
    True story.

  10. #10
    Rookie Member davidblack's Avatar
    If your broker is not regulated then you can be scammed and they can ban you.

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