Binary Options Bonus – How does it work?
Bonuses, sale-off and coupons are popular ways for a company to attract more clients, however, there’s usually some strings attached with bonuses that people often don’t really pay enough attention to, which, in some ways, cause bad impressions or complaints regarding to binary options broker; calling it binary options scam, traders start to disbelieve in brokers and lose faith in trading binary options in general. There are a lot of traders who think that the more the bonuses, the better it will be for his account without reading to the term and condition first. In this article, I’ll try to clear the confusion on how binary options bonus works.
Most brokers offer bonus in the range of 20% up to 100% the total amount of first time deposit. For example, you deposit $200, you’ll suppose to get $100 bonus, given that the broker offer 50% first time deposit bonus. One thing I notice is that most broker will deposit the bonus into your account right away when you make your initial deposit, however please take some time read on to see whether you are falling into those who are not very careful when it comes to free money.
In this article, I’ll take EZTrader as an example of how binary options bonus works. We could see that currently EZTrader offer %40 bonus for those who deposit $500 as their summer trading promotion. However, before taking any bonus, read their term and condition regarding to the bonus.
As you could see there’s certain restriction when it comes to trading with the bonus. They clearly state that in order to withdraw the bonus, one need to meet the turn-over requirement, which is 25 times of the bonus. It means that if you receive the bonus of $100, you would need to trade $2500 trading volume in order to qualify for bonus withdrawal, also that trading volume has to be reached in no longer than period of 90 days counting from the time of deposit.
If you want to withdraw the bonus account, all the bonus will be cancel and any profit generated from the account will be gone (given that you are profitable, if you are not profitable, then the balance will stay the same, only the bonus being canceled)
Apart from that, in order to withdraw the bonus, you need to provide them additional documents like Identify Card, scan of Credit Card, proof of address etc. Some people don’t like to reveal their identity, therefore they blame the brokers for doing bad business practices, blame them to not stand to their promises, but we could see that clearly they state the Term and Condition regarding to bonus in their website. It’s understandable for binary options broker to impose those restriction regarding to bonus since it’s basic guidelines for any financial brokers and to act against money-laundering activities.
My advice is that traders need to always read carefully the term and condition before trying any service or product. If there’s still confusion, it’s advisable to email, live chat or even call the representative of that broker, I believe that they would be very glad to help you out since you are a prospective client for them. If you are currently stick with a bonus, don’t be scared away after reading this articles, just trade normally and you could see yourself finished trading the minimum requirement and be eligible for withdrawal. For me, I never choose to accept any deposit bonus because it’s way too much hassle when I have to submit my personal information to the brokers. In addition, after 25 times volume of the bonus, if I find myself not profitable, then the bonus wouldn’t help too much either…
Remember that there’s no free lunch in the world, always read the term and condition clearly, email and call your account manager before accepting any deposit bonus.