Binary Options Bonuses
In recent days, there has been a lot of change within the world of binary options, especially as consumer protections have been entered into place in many countries to help alleviate concerns about the regulation of the market. Recently, there has been a movement to overturn the use of binary options bonuses and any other advertising activity that might entice traders to trade beyond their capacity.
When binary options were first introduced to the financial marketplace, binary options bonuses were a large part of a broker’s investor attraction strategy. In some cases, the terms that applied to the withdrawal of bonus funds were disguised, as there were no policies in place at the time to encourage consumer protections. In many ways, traders may still view a binary options bonus as a kind of free gift, but it is important to realize both the benefits and conditions applied to these kinds of funds.
How Do Binary Options Bonuses Work?
A binary options bonus is a select amount of funding that traders can use to keep their investments more liquid.
These binary options bonuses are usually offered by a binary options broker, not as a reward to trading, but rather to generate additional funds that can then be traded. In most cases, these bonus funds aren’t eligible for withdrawal until traders meet the minimum volume of binary options trades through the broker.
Oftentimes, these minimums for trades are maintained at a high level, up to twenty or thirty times the value of the bonus. This makes it tricky to be able to redeem bonus funds. In some cases, less trustworthy brokers use this method to keep funds locked in to brokerage accounts. These same brokers can sometimes operate outside of regulations, even applying bonuses to accounts without the express permission of their client.
Starting in the spring of 2015, however, all binary options brokers who are under appropriate regulatory control are required to explicitly state any conditions or restrictions that might apply to bonuses, in addition to maintaining written approval from the trader before the bonus is applied.
Nature of Binary Options Bonuses in Europe
Generally, most binary options brokers fall under the regulation of CySEC, especially within the European Union. However, some countries also employ their own restrictions on brokers who operate within their borders. For example, in France, the AMF maintains a high degree of restrictions on binary options brokers.
Because some brokers still operate in a roguish way, skirting regulations and using unsavory tactics to generate funds, there has been a recent push in many countries to completely ban the use of binary options bonuses. However, these moves only punish the regulated brokers, without stemming the problem at its source.
Looking Forward to the Future of Binary Options in Europe
If bonuses become banned across the European Union, it will likely be more difficult for regulated binary options brokers to seek out new clients. In many ways, this will push those brokers to find new and more creative ways to market their products to potential investors.
In some cases, brokers might adapt their operational style and open up new binary exchanges, in which a given trader is placing strategic calls against other traders in real time, which can minimize the potential controls of brokerage services.
Some brokers will likely splinter off into related companies that are not under the regulation of the same bodies. Bonuses might also be provided only to traders who operate within approved countries. Because this is a short-term solution to a long-term problem, this approach will not likely succeed.
Based on the new and future regulations that will begin to take hold in the European markets, binary options brokers will likely have to examine their existing strategies in order to survive and to continue to offer services to binary options traders around the world.
Binary Options Bonuses In Simple Words
If you are looking at creating a binary trading account - you will quickly become aware that there is an array of binary options bonus schemes available; every binary options broker attempts to entice you to use their service by offering you free cash. However, it is essential to consider what they are offering thoroughly to ensure you choose the right binary broker for your needs.
Many brokers will shout out about their offer to match your initial binary options deposit; if you deposit $2000 then they will credit your account with an additional $2000 giving you an impressive four thousand US dollars to start trading with. However, this is usually the case for the traders making large deposits; if you are simply depositing the minimum amount you are more likely to get between twenty and fifty percent. All binary options deposit bonuses are awarded as soon as your account has been credited with funds.
Getting Started With Binary Options Bonus
There is no doubt that a binary options bonus will swell the funds you have available to trade with. However, there are terms attached to it. It is generally accepted that you will need to trade between twenty and thirty times the value of the binary options bonus before you will be able to access any of your funds. This is a significant amount! For example, you deposit $250 and get a 50% bonus of $125. Multiply this figure by twenty and you get $2500; this is the amount you will need to trade before you can access your funds. Bonuses are generally awarded automatically, although it is possible to request one you cannot usually negotiate the terms of the bonus.
Things To Pay Attention Before Using Binary Options Bonus
It is advisable when looking at the binary options bonuses on offer to go with the one that most suits your intended trading style. You do not need to opt for the largest binary options bonus possible, there are other benefits tied to lower bonus accounts such as higher rates of return. You will be able to trade the required amount and regain your funds providing you approach your trading in a business like manner.