Know Your Customer policies (KYC procedures) follow financial regulation guidelines intended to prevent money laundering, identity theft, financial fraud, and the funding of drug trafficking and terrorism.
In the online trading industry, registered and regulated brokers are required to collect a minimum amount of information from their clients. Unfortunately, as levels of bribery, terrorism, fraud, hacking and corruption increase globally, regulatory bodies are continually having to work harder trying to prevent and/or prosecute such criminality. One of the ways to do this, is to implement more stringent and rigid prevention measures. If they want to remain legal and registered with the relevant authorities therefore, banks, financial institutions and all kinds of online financial and trading brokerages are therefore legally obligated to ensure that their clients meet the KYC procedures and documentary requirements.
In order to trade in binary options successfully, you need to partner with a trustworthy broker. You want the peace of mind that you can trust your broker and that the brokerage you sign up with, has your best interests at heart. Finally, you need to know that you will be able to withdraw your earnings at any time.
In a nutshell, before you will be able to withdraw any money from your online trading account, you will have to ensure that you have complied with these regulations, otherwise your broker has the right to withhold the money that you have both earned and paid to them in the form of a deposit.
This all sounds very scary and limiting to the uninitiated and raises questions like: ‘How do I find a registered, regulated broker who complies with these requirements?’, and ‘Will I get my money back?’.
Finding an established trading partner.
When looking for a registered and regulated brokerage with reliable KYC Procedures, have a close look at the company’s website. A registered, regulated company will not hide the fact that they are registered and regulated. You should be able to find all the pertinent registration information displayed on the website. I have done an exhaustive study of different binary options trading companies and have found that Stern Options is very serious about regulatory standards. They are registered and regulated by the EU financial regulatory bodies, and they follow the guidelines set by the UK’s Joint Anti-Money Laundering Steering Group in an effort to combat money laundering and terrorist financing.
Will you be able to withdraw your funds?
The first step is to ensure that you open an account with an established, registered and regulated company. I can’t stress this enough! In an online world where scams, front companies, and fraudulent activities are commonplace, it is easy to get conned into believing that you are signing up with a valid brokerage. If you open an account with a bona fide brokerage like Stern Options, and you submit all the relevant KYC documents to them, you will be able to withdraw your investments.
Following KYC Procedures correctly.
As part of the process to be able to start trading online, you need to submit the following documents:
• A completed and signed Declaration of Deposits (DOD). This is a receipt for your deposits and it will either be available on the company’s website or will be sent to you by email.
• A scan/photo of proof of address (a bank statement or utility bill that clearly states your current address).
• A scan/photo of your ID (driver’s license or passport).
• A scan/photo of any credit/debit cards you’ve used to fund your account.
• A voice signature (you must contact your assigned Account Manager to complete this step).
• A completed withdrawal form.
Collating, scanning and uploading these documents can be difficult for some people. The wonderful news is that the Stern Options’ customer support centre is open 24/7 and has friendly, efficient staff who are ready to help you with your KYC documentation.
Fortunately, you only need to submit these documents once; therefore, my advice is to get the documentation submitted as soon as you can, and then you can get on with your primary goal – to generate wealth.