We have to mention that binary options bonus has been notoriously abused by some non-regulated brokers by imposing unreasonably high turnover requirements. Please note, that under no circumstances a regulated binary broker can use bonus as an excuse to lock funds deposited by a trader on his trading account. At any time a bonus can be removed from a trading account at the discretion of a trader and balance withdrawn without any restrictions. Binary broker reserves the right to cancel profit generated with the help of binary bonus.
Many traders are hesitant to accept binary bonuses, because they do not want to have the commitment that comes with the bonus offer. Others find them rather useful instruments which give a number of trading advantages. Below we provide some recommendations to those traders who are not sure if they want to accept bonuses on their trading accounts or who already have had a negative experience trading with bonuses offered by some non-regulated brokers.
- Bonus terms and conditions should be clearly communicated to you by the broker’s sales manager. You should always be able to find detailed information on trading benefits in legal terms of service placed on the broker’s web-site.
- Do your research prior to opening a live trading account and accepting a bonus. In order to withdraw the profit generated with the help of a bonus, some brokers will ask you to meet certain volume turnover requirements. The volume requirements can vary from broker to broker, but most of them use similar formula: total amount of all trades you place on your account should be equal or above the value of your bonus multiplied by 20. If you have received a $100 binary options bonus, to withdraw your profits your bonus turnover should be 20 x $100 = $2000.
- Other brokers offer more favorable turnover requirements. The most generous offer we have managed to find is 5 times bonus value turnover requirement offered by PrimeTime Finance broker. And the best thing about that offer is that if you place a withdrawal request before meeting the requirement your bonus will be cancelled but not the profit! You can withdraw it at any time!
- Consider the amount of your deposit and binary options bonus percentage. If you deposit $500 and receive 50% binary options bonus on your deposit, there is no reason to worry about the trading volume you need to generate on your account before you can withdraw your profit. It is so insignificant that you should be able to meet withdrawal conditions in a matter of days or maximum several weeks trading on a regular basis. But if we are talking about larger deposits, for example $10 000 and above, you really need to evaluate your long term and short term trading objectives, as for instance a 100% bonus on a $10 000 deposit will require up to a $200 000 volume turnover and might not be suitable for all traders. A good thing about large bonuses is that you will have to compound a large trading volume and profit on your account before you will be able to make a withdrawal, thus you will be able to increase your investment amounts safely and without jeopardizing your risk management strategy.
- Some binary options brokers offer no deposit binary options bonus, which can be also subject to withdrawal conditions. Turnover requirements of such bonuses are normally very restrictive and hard to achieve. Remember there is no such thing a free lunch in business world. This type of bonus is usually offered for a limited time by new brokers in the course of their promotional campaign and should be perceived primarily as a form of demo account, which allows you to get a taste of binary trading and practice on a live account.
Binary options bonus is a trading instrument which can boost profitability when applied properly. Conditions of binary bonus should be diligently studied and fully understood by a trader. A trader need to be cautious and know how to use trading binary options bonus to his advantage within the boundaries defined by his risk management plan.
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I started trading and took the bonus at Banc de binary. It was my mistake. They do not let me take my money. Who can advise me what to do. Avoid this Broker