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If you’re looking to work with a new binary options broker, it’s essential to ask many questions no matter if you’re a professional or novice trader. If you have a bulletproof technical strategy in place, but invest your money with a questionable broker, then you will have drastically reduced your chances at success. A broker that is not willing to answer your questions or provides roundabout answers is a clear red sign and you should avoid them at all costs.

Asking an array of questions is a wise approach and will help you to avoid predicaments from the get-go. You can also safeguard yourself against fraud by conducting thorough research on your broker of choice and supplementing your findings with questions. It may be time-consuming and tedious, but will pay off over the long run because you will be cushioned against unexpected losses resulting from unreliable brokers. You can never ask too many questions, especially when personal funds are involved. If a business interaction doesn’t feel right, your instincts are your best guides and it’s a clear sign to take the next exit.

When joining a new platform, it’s important to ask questions about the product itself, the people who sell the product and those that give advice about the product. If you’re not communicating via email, make sure to write down all the responses you receive, so you always have a reference point should anything take a turn for the negative. Always aim to be the smart trader that wants to know the risks and rewards associated with trading. Below are some key questions you should ask before signing any contracts with a broker or binary options platform:

  • How will this investment make me money?
  • Does this investment project match my investment goals?
  • Why is this investment suitable for me?
  • What are the total fees to purchase and maintain this investment?
  • What are the specific risks associated with this investment? What is the maximum I could lose?
  • How long has your company been in business? Is your management board experienced?
  • Where can I get more information about this investment product?
  • Are you registered with a binary options regulatory body?
  • What is your investment philosophy?
  • Describe your typical client
  • How do you get paid? Do you receive commissions?
  • What are the fees for withdrawals and/or deposits?
  • Are there any additional account fees you charge?
  • What payment methods do you accept?
  • What are the terms and conditions for accepting bonuses?

If you encounter any problems along the way, make sure to refer back to the answers you wrote down from your first conversation. Try speaking with your introducing broker to sort out any misunderstandings and if he/she cannot help, you then take your complaint to the branch manager. Beyond this, you can direct your inquiries to the firm’s compliance department or your country’s securities regulatory body.