Poll: Should I Take a Bonus? and How Much?

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  1. #31
    Junior Member BinaryScamSniffer's Avatar
    As for this year, the news about CySEC banning bonuses shattered the numerous binary options scam schemes, being quite shocking for most of the traders as well. Citing the forthwith declaration of Cyprus Securities and Exchange Commission “Cyprus Investment Firms must avoid the practice of offering bonuses that are designed to incentivise retail clients to trade in complex speculative products as it is unlikely that a firm offering such bonuses could demonstrate that it is acting honestly, fairly and professionally and in the best interests of its retail clients.” The decision was undoubtedly a step forward against scams in binary options as they were frequently using bonuses as a bait to deceive the inexperienced traders. Being offered a high revenue for no apparent reason is too attractive for a rookie and he might even feel like a lottery winner, but a scrupulous analysis of the terms and conditions brings to light the actual reason why a broker would commit such `acts of kindness`. An example of a common scheme is freezing the account once the trader accepted a bonus. In this case, it can only be recovered when the minimum number of positions traded is met. Now presumably you are not entirely satisfied with all the other features and with this particular broker overall. Notwithstanding, you cannot withdraw your funds and quit the collaboration until you have traded sufficient positions. As a consequence more and more novices become their loyal clients out of legacy. Speaking of the shadiest ones, there is not even such a minimum and the funds are just lost irreversibly.
    However, despite the fact that it is legally prohibited, some brokerage firms still offer bonuses. Numerous cases have been reported when brokers had double regulation and could hide the accounts offering bonuses. They would audit them at an offshore regulatory body, while still conducting a few demonstrative accounts for CySEC.
    To summarize, bonuses, in the best case, lead to an unwanted commitment, whilst the worst scenario is having your entire account frozen forever. These tempting gifts add extra terms and conditions, making trading less lucrative and withdrawals problematic. My advice is to avoid any further collaboration with brokers that provide such services.

  2. #32
    Legendry Member milos's Avatar
    I was traded by many brokers. They are mostly recommended by bots. I am trading and using by bonus offering. It is included trading volume. I got bonus. In some cases there was problem to withdraw the funds. I was waited form a month.

    In the last few months I noticed that there were a lot of changing brokers policy like fees in case inactive account.It includes also affiliate programs.One of the main reason could be skrill payment service who is caused by problems to withdraw the money from the broker account.It can doubt or put account in investigation process...or doubts in gambling or betting.

  3. #33
    Moderator Kolyo's Avatar
    I admire the CySEC decision to ban bonuses! After all such schemes only force newbie traders to accept the bonus, start to over-trade willing to achieve the bonus turnover (between 30 and 50 times the initial deposit, sometimes even more) and eventually give up all their trading capital in the hands of their broker.

    Even in cases the trader find out that the scheme is not good for him, he is forced to continue trade because he will not be able to withdraw his own money according to terms and conditions of the promotion, which is ridiculous. Even if there is not such a rule in the terms of the broker the trader still prefer keep trading because he see more money in his account and know that after even partial withdrawal it will lose this additional "free" money (actually Fake money!). So in brief it is great that reputable and regulated brokers will be forced to remove bonus promotions. The same line is going right now with Forex brokers as well.

    In general the bonus is good think but only in the hands of experienced trader knowing what he is doing. In hands of less experienced traders it is a dangerous instrument that help him lose more quickly!
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

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