The idea of binary options has been around for a long time. It is a relatively simple concept to understand, making it extremely appealing to beginners and experts alike. However, just because it is simple to understand does not mean it is simple to understand. Because of that, there have been many services that have arisen that manage binary options for traders.
The idea of utilizing a managed account service is one that appeals to many binary options traders. The benefits of having a professional market expert to manage a trading account are quite clear and should need a little explaining. Little to no effort is required and the profit potential can be great. On the downside, it can be extremely tough to select the best broker and best account manager. A wrong decision can easily lead to heavy losses. It is this challenge that causes far too many traders to fall short, not having their hopes and expectations met. Fortunately, there are ways to avoid the pitfalls that are associated with making these selections.
Expectations?
Prior to making any selection, it is important to understand what to expect from a service that is involved in managed options trading. At a base level, a managed account is one that is funded by the trader but traded by someone else. In exchange for this service, the account manager will receive some type of compensation. This could be a flat fee that is paid periodically, a portion of the profits earned, or maybe even both. Often, the trader will have some say or control over the process. For example, it may be possible to select a low-risk approach in order to safeguard your account funds or a high-risk approach if the goal is fast profits with an acceptance of riskier trades.
What to Look for to Find the Best Service?
Even when an individual or team is trading on the behalf of a trader, there should be total transparency with regards to each trade that is taken. All results should be accessible at all times. When searching for a binary options account manager, it is wise to ask plenty of questions about transparency and accountability. While there is always risk in trading, the risk of hiring an account management firm can be reduced by asking plenty of questions upfront and understanding exactly what to expect. Furthermore, take the time to read and understand all of the terms and conditions before getting started.
Do your Research
With regards to both binary options brokers and account managers, research is key. The internet is an excellent tool for this, but do keep in mind that not every testimonial is going to be honest or indicative of actual results. Ideally, there will be plenty of good reports and a few complaints (no service is ever perfect). In addition to searching on Google, consider using social media to scout out brokers and account management options. On social media, traders are allowed to post their honest opinions about such services. While some filtering could take place, there are trading groups and other gathering places where this cannot take place.
Test the Performance
Once a selection has been made, testing is recommended. This can be done using a smaller deposit and low-risk management request. This approach will not provide huge profits, but it will let you know what to expect. After a level of security and trust is in place, a larger deposit and looser reigns on the account manager can be considered. Many binary options brokers offer free demo accounts, but demo management services are typically not available. To put it simply, any chance to test a broker or system before making a deposit should be taken advantage of and requested.
Conclusion
In summary, it is quite normal for those who trade binary options to want to generate massive profits with minimal effort. Some choose to trade on their own while also using management services to boost their earnings. Others exclusively use management services to provide them with earnings. The key to any type of success is in the selection process. Research is vitally important, as is account monitoring and continuous evaluation. This holds true even when partnering with the best binary options broker and best trading account management services in the world.
Never put in more money than you have to lose, and even though someone else will be managing your money, you should keep an extremely close eye on how that money is being managed.
