Profiting too much

Will a binary options broker (not regulated) cancel or freeze your account if you profit too much?
If so, what can be done about this?

If it is WAY too much in WAY too short of a time, they may check it to see if it is some sort of glitch or you are somehow cheating the system. If that is your problem though, too much profit at once, then more the power to you.

Some people already feel Forex trading is a sham,but binary options brokers are really taking it over the top. So far, haven’t come across a legitimate one. I guess the only way to trade binary options is to psych the broker out. In other words, give the broker nothing to worry about.

With forex, brokers will send consistently profitable clients’ trades upstream or hedge against it to offset the risk of paying them. brokers will take the other side of the trade against unprofitable clients as it is almost always a sure win in the long run.

same with binary options, but brokers always take the other side of your trade. now if you are consistently profitable, the broker loses money. i’m not saying not to be profitable, but your best bet is to trade erratically. throw in volumes that don’t make sense and make it look like you’re gambling. of course, you’ll have to make sure that you’re winning more than you lose. at the end of the day, the broker may just feel you are lucky and won’t have any real reason to ditch you as a client.

I can’t see virtually any fault, fraud or improper usefrom the client side which could result in blocking account. Based on my trading experience with optiontrade broker (of course regulated) you need to be genie to invent some fraud and moreover implement it. You are betting, not trading, thus tricks from spot trading will not work there. However, we are talking about unregulated brokers which are a Jack of all trades ;). Inflicting ban on your account because of the accelerated antarctic ice breakup is something common for them :slight_smile:

I did not know that Binary Option brokers are regulated. This type of trade is close to gambling. If you profit too much in a casino, the owners will throw you out and never let you in.

They’re not. This is why binary options brokers are mushrooming. Pretty much no regulation because regulatory bodies haven’t caught on. I think FX is probably going to see some earlier crack downs on leverage and what not.

Another way to trade binary options is not through a binary options broker, but actually through an online casino or gambling site. These sites are starting to offer financial betting. They are safer in the sense that gambling activities are regulated so there is some sort of regulatory oversight.

Yes they can and there is nothing for you to do about it.
So my advise for new traders who want to try binary options is to go with regulated and proven binary brokers.

I have never heard of this case so I think no, and I really don’t know how a binary option broker work in market, maybe winning of trader doesn’t affect the broker capital so they don’t need to block it to reduce their losses. Anyway, Binary Option is new and we should wait in the a near future. Just keep your trading and stay safe.

When traders win, it affects the brokers directly. There’s no interbank liquidity or any further market for the broker to pass trades forward. They carry on the risks themselves.