Is Experiencing different profit rates for different people normal practice for a Broker?

kyangkyang Posts: 3
Recently I have been experiencing a lowered profit rate on all my assets. When I emailed my account manager, he mentioned that this was a region by region thing; depending on the risk of the region towards the broker, they will either lower or increase the profit rate based on this risk. So I went and asked on the public chat and found that people from my region (Country) were having higher profit rates than I was (40% for me and 89% for them to be exact).

So my question is: is it legal/normal for a broker to offer different profit rates on the same asset for different people?

P.S. In case anyone is wondering, this is a regulated broker.

Comments

  • OkaneOkane Posts: 996 admin
    kyang said:

    Recently I have been experiencing a lowered profit rate on all my assets. When I emailed my account manager, he mentioned that this was a region by region thing; depending on the risk of the region towards the broker, they will either lower or increase the profit rate based on this risk. So I went and asked on the public chat and found that people from my region (Country) were having higher profit rates than I was (40% for me and 89% for them to be exact).

    So my question is: is it legal/normal for a broker to offer different profit rates on the same asset for different people?

    P.S. In case anyone is wondering, this is a regulated broker.

    "Is it legal"
    Yeah, they are market makers and they can do whatever they like when it comes to many things but specially
    payouts or they can even remove assets for you if they wish.

    "Is it normal"
    The standard is usually lower payouts during low volatility market hours but
    40-50% lower payouts could be client specific. I have heard some brokers do this
    if a client is doing too good on one certain asset. Which broker is this?
  • kyangkyang Posts: 3
    Okane said:


    "Is it legal"
    Yeah, they are market makers and they can do whatever they like when it comes to many things but specially
    payouts or they can even remove assets for you if they wish.

    "Is it normal"
    The standard is usually lower payouts during low volatility market hours but
    40-50% lower payouts could be client specific. I have heard some brokers do this
    if a client is doing too good on one certain asset. Which broker is this?

    Thanks Okane for getting back to me so quick.

    The broker I'm trading with is IQOptions. They said, and I am paraphrasing my account manager, that the risk department assessed that I was too much of a risk to be offered the normal profit rates. Basically I have lowered rates on all assets.

  • OkaneOkane Posts: 996 admin
    kyang said:

    Okane said:


    "Is it legal"
    Yeah, they are market makers and they can do whatever they like when it comes to many things but specially
    payouts or they can even remove assets for you if they wish.

    "Is it normal"
    The standard is usually lower payouts during low volatility market hours but
    40-50% lower payouts could be client specific. I have heard some brokers do this
    if a client is doing too good on one certain asset. Which broker is this?

    Thanks Okane for getting back to me so quick.

    The broker I'm trading with is IQOptions. They said, and I am paraphrasing my account manager, that the risk department assessed that I was too much of a risk to be offered the normal profit rates. Basically I have lowered rates on all assets.

    Yeah you are not the first one to report this when it comes to IQOption.
  • kyangkyang Posts: 3
    Okane said:

    kyang said:

    Okane said:


    "Is it legal"
    Yeah, they are market makers and they can do whatever they like when it comes to many things but specially
    payouts or they can even remove assets for you if they wish.

    "Is it normal"
    The standard is usually lower payouts during low volatility market hours but
    40-50% lower payouts could be client specific. I have heard some brokers do this
    if a client is doing too good on one certain asset. Which broker is this?

    Thanks Okane for getting back to me so quick.

    The broker I'm trading with is IQOptions. They said, and I am paraphrasing my account manager, that the risk department assessed that I was too much of a risk to be offered the normal profit rates. Basically I have lowered rates on all assets.

    Yeah you are not the first one to report this when it comes to IQOption.
    So far no matter where I look I keep finding negative reviews about the more reputable brokers (i.e. 24Options, HighLow, etc.). Are there any brokers that actually don't do this selective profit rate thing to its clients? Or even just brokers that provide good service with good profit rates?
  • The_Geek_MHThe_Geek_MH Posts: 464 mod
    you're always going to find negative reviews. It's either sour grapes, or people who think binary is like investing, which it isn't. You're also going to always find a little "spread" between asset price and your buy in price, it's just how the system works. The best thing is to target signals that predict movement greater than a pip or two, solid moves for solid profits.
  • BertieKerter1BertieKerter1 Posts: 1
    I am also curious about that.
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