Binary options can trace their origin to the casino industry. Binary options started as a type of stock market game in online casinos where you were able to bet on whether a stock was about to increase or decrease in value. Binary options have developed a lot since then but you can still see traces of their roots in the casino industry.
One such trace is the fact that many binary options brokers used to offer bonuses. This is no longer allowed on many markets.
Binary option bonuses are still offered in some markets but are not allowed in Europe or the US. Below we are going to look at what you should think about before accepting a bonus if you live in a market that still allows bonuses.
DO Not chose a broker based on their bonus
You should never use the size of a bonus to decide which broker to trade with. A good broker makes it a lot easier to make money and your only goal should be to pick a good broker that gives you a fair chance to make money. Some brokers make it very hard to make money and it does not matter if you get a big bonus since you are likely to lose money while trading. You are not allowed to withdraw your money or your bonus until after you have met certain trading requirements. These requirements all but guarantee that you will lose money if you register with a bad broker.
Always choose a good broker like IQ option and if they offer a bonus then you might chose to accept it but you should never chose a broker because they offer a large bonus.
The trading requirement
All binary option bonuses are associated with trading requirements. You need to meet these trading requirement before you ca withdraw any money from your account. This usually attain to both the bonus and the money you deposited. This is to prevent bonus collecting. When someone register an account to get the bonus and then withdraws the money and move on to the next broker. The bonuses are meant to attract new traders, not to be free money for people who have no intention of becoming traders.
The trading requirement is often rather large. This helps make it unattractive for bonus collectors to try to manipulate the system. You will need to trade a lot to earn your bonus and be able to withdraw any money. You will not be able to trade enough to meet the requirements without losing money unless you are a skilled trader. A true customer.
You should always read the fine print and see how much you have to turn over to meet the trading requirement before you accept a bonus. It can often be better not no accept a bonus and be free to withdraw your money whenever you want.
If a bonus is deposited to your account that you do not want then it is very important that you contact the support department and get it removed before you start trading, It is too late to remove it once you made your first trade.
I generally recommend against accepting bonuses because they tend to lock your money in for too long.
Bonuses are sometimes used to scam people
Some dishonest brokers use bonuses to trick people out of their money. They give you large bonuses to get you to keep trading despite the fact that you are losing money. Bonus designed just for you. They often ask you to deposit large amounta of money to get the bonuses. All these bonuses are designed to make sure that you never leave the broker with any money and honest brokers will not try to lock you in this way.
The best brokers do not offer bonuses
Most (all) large reliable brokers have stopped offering bonuses on a global level in response to the regulation in Europe and the US. They want to operate in accordance with the rule and regulations on their most important markets and they understand that it is best to act according to best practice on a global level.
They understand and often agree with why bonuses where banned. Removing the bonuses also helped reduce the number of disgruntled traders and allow the company to maintain a good reputation.