Should You Trust Your Broker’s Account Manager?
Personal account managers are used as a way of attracting new binary options traders but are they working for you or the broker? Should you be listening to what they have to say?
What is an Account Manager?
Personal account managers are used by the brokers as a way to attract and retain their traders. The benefit of a personal rep, someone who is there to take care of your account needs, answer your questions and help you get started is unquestionable. What is questionable is the lengths to which some account managers and brokers will go to get you to deposit more, and lose more.
I think it’s understood that their main goal is to convince you to buy whatever product the broker is selling, be it CFDs, FX, Crypto or even binaries. That’s OK as long as you know that and you don’t believe they will make you a rich guy. They can tell us all about trading and why this broker is the best but should they really be offering us tips, advice and signals? The manager works for the broker, the broker makes money when you lose so there is a clear conflict of interest in a manager helping you to win. The casinos don’t let the dealers help the players do they? You can’t ask him if you should hit, or split or double down can you? Then why is it OK for your manager to tell you what to trade?
To truly understand why and when an account manager is a good or bad thing you have to understand what an account manager is there for. The manager is there to help you and monitor your account, not to trade for you. The manger should be there as a liaison between you and your platform. He or she should help you get signed up, they should help you with your documentation and identification, they should explain the bonus terms and conditions, make sure that you understand what assets and types of trading they offer, how different types of orders work and other similar stuff. They are not there to pressure you into making deposits, they should not be offering to trade your account, they should not be offering trading tips or suggesting you use a managed trading account. If they are doing any of that, there is something very wrong and you should rethink whether or not you have chosen a good broker.
Account Managers Are A Good Thing, Right?
Account managers can be a good thing for both the broker and the trader, don’t get me wrong. The broker needs them to help retain clients and get them to trade. The clients need them to answer questions, give help and provide support. An account manager that operates within some boundaries brings advantages to both parties, making sure clients are comfortable with trading real money, which means they will keep using the broker. The manager should show you the ropes, and maybe give new traders a little push if they need it, but the line is crossed when they start to give out trading tips and to pressure the client into doing something he doesn’t want.
Before taking any tips, regardless of the source, you have to ask yourself, is this person qualified? It takes a certified investment adviser to provide trading or investment advice, which is not the same thing as being regulated as a broker. Without such certification, it is illegal for brokers and account managers to give advice, provide tips or signals and especially to trade your account.
Why Are Account Managers So Annoying?
The problem is that there are no set standards among binary options brokers. The very term is confusing. A manager, by definition, should be able to “manage” your account or have some active role in your trading decisions. A change in status to account representative or liaison would be better. Along with that, regulation should include no tips or advice, the manager should be there for informational purposes only. You can ask them questions, use them for a reference and for educational purposes. They should be able to help you with account verification, making deposits and withdrawals but not to give you tips. If they want to tell you how to trade they should get licensed to be an adviser and look for a new job.
Account Managers, The Bottom Line
Account managers are a good thing but it depends on the broker and the manager you get. To be honest, I don’t know how far I would trust any trading website if there wasn’t someone I could talk to but like everything else in life, don’t believe everything they say just because they appear to be in a position of authority. The internet is full of scams, not just in the trading industry, so blindly trusting what some web page or so-called account manager says is not recommended in any situation.
The way your account manager treats you is a great way to know if the broker is legit or not. A bad broker will use the manager to take advantage of you, get you to trade more, lose your money on the tips he gives you and then ask for more deposits. A good broker will use the manager to help you trade by giving you tools and information and providing some support but they will not give you tips, advice or trade your account for you. Education or accepting a little nudge in the right direction is one thing, accepting an account manager’s tips or letting them trade your account is a whole different ball game. The bottom line, you should be able to trust your manager for help without fear of pushy sales gimmicks or suggestions of larger deposits. If you can’t then I suggest you find a new broker.