We have written a guide explaining how to proceed before making your first deposit when trading binary options. There are loads of rules and regulations that the binary brokers have to oblige to be able to operate as a legal financial institution.
The risk of trading online is not as high as it used to be since most companies are now regulated and present in jurisdictions that comply with America’s laws under European Union’s supervision. If you deposit with a binary broker that you find on Fair Forex Brokers you are 99,99% sure of getting your money back. Nothing is ever 100% sure but it’s as good as it gets. Same would apply to your local bank.
If you have never traded before you will probably not be aware that is easier to deposit than it is to withdraw. The banks are allowed to process your deposit once you fill in a purchase order. The binary brokers do not process your deposits themselves. This is done via processors that operate with credit card companies and banks.
When you buy goods online you are able to use a stolen credit card if its not blocked. Same goes for trading options. However once that card is reported stolen the account and money will be frozen and given back to the card holder. When you deposit and later on request a withdrawal the brokers needs to be sure that the person that is receiving the cash is the same person who was liable for the deposit. In order to do so the brokers carry out a routine ID security check. To find out more please read the article about ID Verification.