Each one of the brokers in the market wants more and more traders to use their platform for binary options trading for which they try to entice them through binary options bonuses and promotion offers. These bonuses, if the trader is not careful, would prove more trouble than they are worth.
Some traders do not correctly understand these bonuses and others don’t really understand binary options and hence in both scenarios incur losses. It is a myth that higher bonuses would necessarily lead to higher profits.
In the beginning of your investment venture the bonus of say 40 to 50% being added to your initial investment say $100 would indeed be helpful. It is transferred into the trading account hence increasing the total trading money, additional $50 in this case adding up to $150.
Yes, it means that essentially you have more money to pursue trading with but there is more than meets the eye. Binary options bonuses are not given without being latched on to some restrictions. There are some terms and conditions that are attached to the availing of bonuses mostly affecting the withdrawal of the profits from the platform.
Let us understand the working of these bonuses. If say you deposit a hundred dollars and the brokerage provides you with a high bonus of 50% that makes your trade money equal to $150. Now to extract this sum out of the brokerage, a trade of about twenty times the investment made (which would include losing trades) is required to be made before the trader can take out his investment and bonus money.
Some brokerages deduct a portion of the money if a withdrawal is attempted before meeting this requirement although most brokers do not even allow withdrawals without meeting this condition. They are not scams or frauds, and are included in the terms and conditions agreement that the traders accept before using the broker’s platform to trade.
Thus, do go salivating for high bonuses and pick reasonable ones, that are not too high but still significant in terms of the deposit made. The bonuses do induce a sparkle in the trader’s eye and prove difficult to overlook but the trader must pay heed to making a strategy to meet the minimum demands of the broker in order to withdraw his profits.
The demands of about $1500 trade before withdrawal could be achieved in a month or two if the traders plays smartly and utilizes the profits made efficiently. Picking brokers that may provide low bonuses but lesser restriction on binary options trading is the way to go as it would ensure realistic chances of extracting the money from the platform.
No broker is in the market to make life easier for you if you are not willing to trade smartly and are instead being impulsive and picking up brokers that seem pleasing to the eyes from the outside and ask you to meet requirements that would be difficult to meet without losing a considerable amount of your investment.