Binary options: Deposit protection for brokers

 

The Greek crisis, crashes on the stock market and other negative events are increasingly unsettling the industry. Many traders who speculate with binary options are also worried because the brokers are managing the trader's money the full details so on their trading accounts. A key role is played by the deposit guarantee, which is always dependent on the broker's office.

Table of Contents:

In the European Union, various EC directives form the basis for the legal regulation of deposit insurance. Here, certain minimum requirements are mentioned and have been get enquiry implemented accordingly in Germany with the help of the EAEG (Einlagensicherungs- und Anlegerentschädigungsgesetz). Accordingly, per person and per bank

and

protected.

When choosing the right broker, it is often found that they have their headquarters abroad, mainly in Cyprus. This is not surprising, because Cyprus is still a tax paradise for companies and offers the same deposit guarantee scheme as described above due to EU membership. An important prerequisite, however, is that the broker carries his accounts in Cyprus my company an or in an EU Member State. In addition, many brokers have already been subject to the regulatory process of the Financial Services Authority (CBC), which ensures the safeguarding of deposits on trading accounts, as these are managed on separate trustee accounts. Should the broker get financial problems or even register insolvency, no creditor has access to these fiduciary accounts.

As a matter of principle, when choosing the right broker, it is important to make sure which bank is used by the broker. If it is within the EU, the above-mentioned uniform made a post who rules apply, which can be enforced in the event of need.

In addition, many banks in different countries offer further hedges, such as the German Deposit Guarantee Fund of the banking associations, which protects the customer deposits even more. So it is worth taking a look at the homepage of the respective broker or a direct demand.

Great Britain dig this for

Our recommendation:

 

50 € bonus for your first trade! ► Now redeem BDSwiss Bonus

 

If a broker's account is located in the United Kingdom or is headquartered there, other rules apply. Although the UK is an EU member, the euro is not included in the Community currency. This is not a full report get disadvantage, however, since the UK-based banks offer a deposit guarantee per person up to a maximum of GBP 85,000 (GBP), which is approximately EUR 122,200. In this respect liability is also guaranteed.

Switzerland

Switzerland is not affiliated to either the EU Member State or to the Community grant Euro. However, the resident banks offer a deposit guarantee per person of CHF 100,000 (CHF), which corresponds to around EUR 95,830. So in Switzerland too, all banks have to stick to this deposit guarantee scheme.

In most cases, the credit to the broker's trading account enjoys legal protection through the deposit guarantee scheme up to extra resources person a certain maximum limit. These limits are normally sufficient for current trading. In principle, account should be taken of the fact that the balance on the trading account is moving in this area and have go to these guys the maximum limits are not exceeded.

Plan traders, on the other hand, speculate with higher sums, it may be useful to distribute the funds to several brokers because the above rules apply only per person and per bank

 

BDSwiss banner