Like any financial institution, whether it a commercial or investment bank, pawnshop or organization that provides an opportunity to earn money in the Internet, the binary options broker requires verification process of the client and his trader’s account. It is worth to remind that exactly the same process you should pass with FOREX brokers (sometimes with even more strict rules), bookmakers and online poker websites.
Verification is a procedure that proofs the identity of the client, that open an account with a broker. It usually consists of several steps, and begins at the time when a trader decides to withdraw profit or own money from his/here personal trading account. Recently, we meet with other scenarios – it is required to pass verification immediately after the deposit and before committing the first trade, or sometimes even earlier – when the deposit in more than US $ 1,000. These requirements are from regulators and licensed brokers should strictly follow them. Usually, the process is very simple – account manager (personal manager or analyst) call you and asking you to provide (through e-mail) a few documents confirming your identity.
Binary options brokers have a list of requested documents. It is almost identical for all brokers and the difference is only in minor details.
This list includes:
- A document that confirms the identity of the client.
This can be a scanned copy or photo from passport or a driver’s license, (you can make it with phone), or ID card (for countries where it is considered as a legal document confirming the identity).
- A document that contains customer residence address.
Often it is can be found disgruntled remarks about binary options brokers because of it. It is considered that in accordance with this requirement it is necessary to send a official document copy confirming the residence address. In fact, there is enough with document showing your payment for any service, such as monthly payment for the Internet, invoice from the mobile operator or lease agreement payments. Note that this document should have your name and your address (residence). And be careful – indicate your name as written in your passport and in your trading account registration. Often there were cases when the client hasn’t indicated his data correctly, and as the “Name, Last Name” wrote something like “John Doe.” And when this “John” receive money, their withdrawal could be a little more complicated… If you have any questions or misunderstandings, you can always ask your broker, call or write to broker chat, so to deal with any non-standard situation.
- Deposit method confirmation. For example, you placed money to your account with payment from VISA card or MASTERCARD. You will need to send a copy of the both sides of card. You are closing part of the card number (usually the first 12 digits), as well as a secret code CVV / CVC. The data that you send can’t be used for unauthorized transactions.
If you deposit funds with the electronic purse NETELLER, QIWI, Yandex or Webmoney, then you can be requested to provide a screenshot from the personal account, where executed operation is visible. A screenshot can be done easily – you should go to your account, press the PrtSc key on your keyboard and make a “photo” of the browser window. Insert this image into any graphic or text editor, save it and send.
As you can see, the process of verification is very simple. This is not just a whim of the broker; it is done for preventing of frauds and money laundering (the so-called procedures of AML and KYC). Broker also should know that the money will be transferred to the person who earned it and no claims will arise. As mentioned above – many binary options brokers are regulated by the supervisory authorities, which put forward stringent requirements to comply with all the rules of financial institutions. Those brokers who do not yet have a license, and/or are in the process of obtaining it, is usually trying to follow these procedures and maintain business with the so-called “best practices”. If the broker does not remind you to do the verification, you should be alerted with it. Whether you can trust this broker?