MUST READ - Binary Options Brokers Warnings
(+) You must always be careful when trading with binary options brokers, some of them that look to be legit and even are regulated have turned out to be nothing more than boiler rooms and bucket shops.
(+) When first dealing with ANY binary options broker first deposit a SMALL minimum deposit for trading.
(+) Never take ANY bonuses! After making profits from first trade ask for an immediate withdrawal.
(+) If you are called on the phone and asked to make any LARGER deposits ALWAYS say NO.
(+) After making a successful withdrawal of first profitable trade + deposit amount you can start to trust the broker.

Can A Binary Options Managed Account be Profitable?

A managed trading account, in binary options, is a special type of broker account that is overseen, traded, and managed by an experienced trader.

Typically, the benefits that come with using a managed account may include:

  • Having a trader with a proven track record place profitable trades.
  • Market insights offered by the account manager.
  • Daily analysis, signals, and potentially risk-free trades. (Risk-free trades are trades lost by the account manager but covered by the broker)
  • Account managers help maintain a win percentage above 75%.
  • A managers account is linked to the experienced traders account.
Binary Options Managed Account

Managed accounts are only offered by some European binary options brokers, but are usually reserved to clients in their highest-tier accounts, so only investors depositing tens of thousands of dollars are eligible for managed accounts in most cases.

Common Problems With Managed Accounts

The main problem associated with managed binary option accounts is that investors mistakenly believe their money is being managed similar to how a mutual fund is managed. Investors think of their account managers as Ivy League graduates, who have a license and experience in managing money.

The reality is that binary options account managers are probably just regular traders with a good track record. Does this mean managed accounts are not profitable? Not exactly, but there are a number of problems traders with managed accounts should take note of.

  1. Regulated mutual funds do not trade options off of their client's funds.
  2. Even hedge funds are only allowed to trade options for their high net-worth clients.
  3. Who is the actual person managing the account and taking trades with your money?
    A senior analyst you met with once on Skype? Or someone with verified credentials?
  4. Managed accounts are offered by OTC brokers. OTC brokers make more money when their clients lose trades.
One of the main complaints against managed binary option accounts is a recurring scenario in which investors are offered a no-risk trial period with an account manager. During this time, the manager makes excellent decisions and produces profitable trades that result in a ROI. But, after the investor decides to go all-in with their account manager, they slowly, but surely, lose most of what's in their account.

This type of client swindling has given managed binary option accounts a bad reputation in the industry.

Conclusion

If you truly want to turn a managed trading account into a profitable experience, consider the following tips:

  • Look up user reviews from other investors. Has this broker been accused in the past of pulling shady tactics with their managed accounts?
  • Read the fine print! Before depositing any money into a managed account, carefully read the terms and conditions to make sure there's no loopholes that allow them to get with away with any nefarious activities.
  • Ask your account manager for credentials! This should include their past market experiences, where they attended university, and/or a verified track record from a third-party service.
If you want to choose a binary options broker and start trading we invite you to read our reviews and to learn more about the following individual brokers: