Binary Options withdrawal scam is one of the major Binary Options scam allegations. To be sure there are brokers that are not reputable and have held onto customer deposits. It is important to do as much due diligence as possible when selecting a broker. Read broker reviews and search the internet to check for trader feedback on particular brokers. There is tremendous competition in the industry so you can be confident that non reputable brokers will become public and won't remain in business for long.
Having said all this it is important to understand how the withdrawal process works and terms and conditions regarding withdrawals when bonuses are involved.
Withdrawing Funds and Anti – Money Laundering Laws
There are those who claim that one Binary Options scam is identity theft. Brokers request some personal information for identification before they will send a profit withdrawal. There are laws in effect with regards to international money transfers. As a rule brokers will not transfer money without receiving personal identification information from the recipient.
As an example 24option requires photo ID, proof of address and copy of credit card used to fund the account in order to make a withdrawal. They state that this information is required to comply with anti – money laundering policies.
Generally identification will be limited to these 3 pieces of information. It is important to check before you deposit what the ID requirements are. Certain brokers, such as TradeRush will require the information before you deposit. Many brokers do not clearly state this information. Often times you must look at the terms and conditions to determine the withdrawal requirements.
It is crucial to clarify this information with the broker before you make your initial deposit. The information required should be limited to photo ID and proof of address (such as utility bill) as well as copy of credit card used to fund the account. If more information such as Social Security # is requested that should raise a red flag.
Binary Options Withdrawal With a Credit Card
Its real easy to fund a Binary Options account with a credit card, but when it comes to withdrawing to a credit card it's not so simple. Most brokers can credit your card back for the original deposit account. This is a simple reversal of the original charge. The profits however, cannot be credited to your credit card. Credit cards don't work that way. You can make payments (and of course reverse those pavements) with a credit card, but you can't receive profit with a standard credit card. It is for this reason that brokers will refund your deposit amount to your credit card, but will only wire profits to your bank account.
In the next article I will be discussing Binary Options withdrawal scam claims as they relate to Binary Options Bonuses.