Trading in online binary options is an activity that is attracting a growing number of enthusiasts who then register on specialized sites to do so. More precisely, they join the platform of an online broker.After registration, they can fund their account and start trading. Many traders have questions about the security of their online accounts. We then hear a lot about the segregation of accounts that would allow us to benefit from an optimized security compared to the money used and earned with an online broker. What is it really like?
Segregation of accounts: a guarantee of reliability for an online broker
First of all, it should be stressed that the practice of segregation of accounts by an online broker is a guarantee that the latter is reliable. Moreover, brokers approved and recommended by regulatory bodies all use this system. And this is an essential criterion for obtaining approval from an institution such as CySEC or the AMF (Autorité des marchés financiers), but what is it really about? Behind an expression that seems rather technical and barbaric is a definition that is rather easy to understand. Account segregation simply means the separation of the broker’s accounts from those of its clients. In practice, the broker then has two accounts. On the one hand, there is the one where one’s own finances pass through. On the other hand, there is the one dedicated to storing its customers’ money.This means that the money of the operator and that of the traders are quite distinct and separate. There is therefore no risk (less risk?) that the broker may take money from his clients. For example, OptionWeb, one of the major brokers on binary options, sets up segregated accounts. As you can see, all binary option brokers on this site have adopted this system.
When CySEC makes its commitmentsThe
principle of segregation of accounts is particularly important to the Cypriot regulator CySEC, a body that issues a licence allowing the broker to offer its services in Europe (and in particular in France). CySEC thus ensures that the broker sets up a system for segregating accounts. Even better, the organization is fully committed to a maximum amount of 20,000 euros per client.