New traders are often unsure whether they can trust a binary option broker to be legit business. With StockPair you would winder “Is StockPair legit?” – but with StockPair you do not need to worry. Here is why.
Why is StockPair legit
1) EU regulated broker
The sure sign of a legit binary options broker is that it accepts government regulation. StockPair has accepted government regulation by the European Union.
Among other ways of protecting the trader, this regulation guarantees that all accounts with a balance of less than €20,000 are completely protected. This means that you can always get the money you deposited with StockPair back, even if the broker should go bankrupt.
When you deposit money with a non-regulated broker, your money is not protected. When the broker goes bankrupt, your money is lost. With StockPair, this cannot happen. Your investment will be deposited in an Investor Compensation Fund (ICF) that will cover your investment up to an amount of €20,000.
For accounts with a balance of more than €20,000, the ICF only protects the first €20,000 of your money. If you have a very large account, you might want to think about getting an insurance for the rest of your money that is left unprotected.
2) No fees
Another strong indication of a trustworthy broker is that it is not employing any fees for binary option trading. By their nature, binary options are a direct contract between the broker and the trader, which makes fees unnecessary and taking a fees a sure sign of a broker trying to get the better of you.
StockPair does not employ and fees for binary option trading. You can invest in any option for free, there is no annual fee for your account, etc. The only fee is applied to withdrawals for silver accounts. Therefore, we recommend you get a gold account as quickly as possible.
Some brokers try to employ a backhanded fee by providing the trader with a worse asset price than the real market price.
In regular trading, where the broker acts as a mediator between traders, discounted prices are common practice. Since binary options are a direct contract between broker and trader, however, there is no need for such a policy.
StockPair always provides its customers with the real, up to the second market price. This is a huge advantage that will help you win a higher percentage of your trades than the manipulated prices of some competitors would allow.