One of the main marketing tools binary options brokers use to get people to sign up and deposit money is through bonuses. Bonuses are a great way to get people to choose your broker instead of competitors, considering that bonuses are essentially free money. At the first sight this seems to be an excellent deal. But are bonuses really something you should be considering? The biggest issue with bonuses is the fact that they always come with wagering or trading volume requirements.
A trading requirement can look like this: What does this mean? Now, this sum seems to be very high but remember that trading volume means money invested in total. Nevertheless, the existence of trading volume requirements can cause a lot of problems for beginners or for traders who only deposit the minimum allowed amount. This is because for these types of traders reading the trading volume requirements still represents a difficulty.
Trading volume requirements inadvertently trap beginners and minimum deposit traders in and result in them not being able to withdraw their deposits in case they change their minds and want to cash out. There is a very good reason why these volume requirements exist. They exist in order to prevent bonus fraud. Bonus fraud is when someone makes a deposit, receives the bonus, and then requests a withdrawal. So, while the existence of these bonus withdrawal limitations make perfect sense, they still cause a lot of problems for certain types of traders by preventing them to withdraw their deposits whenever they want.
In other words, in your case accepting the bonus is actually a bad thing rather than something that benefits you. There are two ways of how not to accept a bonus. First, you do not have to request it in he first place. Most brokers only give out bonuses when you specifically ask them to do so. Sometimes an account manager will offer you a bonus in order to get you to lock your deposit in. Make it politely clear that you are not interested in the bonus.
No matter what you are being offered, you should refuse it. Second, if the bonus is automatically added into your account, then contact an account manager and get them to remove it. The account manager might attempt to convince you to keep the bonus but you should politely refuse. Binary options brokers that are regulated by CySEC Cyprus Securities and Exchange Commission are bound by law not to lock your deposits in in case you have accepted a bonus.
If you accept a bonus, then the trading volume requirements can only be valid on the bonus money itself. You will be permitted to withdraw your deposit at any moment, provided you have enough money in your account that was generated from profits you earned.
This almost makes the bonus to be attractive for beginners as well. Likewise, you will be able to withdraw your deposit at any time. So, it makes lot of sense to trade at regulated brokers.
Keep in mind that unregulated brokers do not have to follow this rule and instead they will lock your deposit in as well. If, however, you are an experienced trader then getting a bonus is a bargain. You will almost always be able to match the trading volume requirements, and accepting the bonus essentially means for you the doubling of the funds that you can use for trading purposes.
In this article you can learn when it makes sense to accept a deposit bonus from a binary options broker. Bonuses are not always as great as they seem. In this page I will show you how to find the best binary options bonuses and how to profit form them the most.
Not all bonuses are made the same, and to properly profit from them you will have to understand how they work. In this - I think very important - article I will discuss the issue of binary options bonuses. While these bonuses seem very attractive at first, the question remains whether or not these are actually worthwhile for the average trader. Why bonuses can sometimes do more harm than good.
Why do bonus volume requirements exist? What is there to do if you are a minimum deposit trader or a beginner? According to CySEC regulations bonuses are being treated the following way: Imagine the following scenario: Who should accept bonuses? Are Binary Bonuses Worthwhile? Be the First to Comment! Notify of new replies to this comment.More...