Why you need to watch out for BONUS TRAPS in BInary Options!

AnnaLeeAnnaLee Posts: 28
edited January 2016 in Beginners Questions
I had a conversation with a friend the other day that interested me. He’s a rational trader who started trading binary options in August. It turned out he claimed 100% bonus on the $10,000 deposit and completed the required turnover within 2 weeks with the help of return cash from turnover. I am not a big fan of the bonus structure, but his success do give me some inspirations. If you are aware, deposit bonuses are a common feature of binary options brokers today. The brokers use them as an attraction to get new trader to open and fund accounts and they work. Who wouldn’t want some free money but the question is, how can you make it your own? There are several reasons why you need deposit bonus and how can you employ it to process the withdrawal.

Trade Minimums- Every bonus comes with a trade minimum. Trade minimum is the dollar amount you must reach before the bonus money can be withdrawn from your account. It usually comes with a time limit. Adding bonus can provide sufficient positions for traders to reach the trade minimum. On average the bonus will be between 50% and 100% of the deposit, while trading minimum will be between 50-90 times the bonus. Some brokers offer as low as 40 times and some as high as 100 times the bonus. This means an account with a deposit bonus of $1000 will have to make trades totaling $40,000 before the bonus is yours. Traders needs to specify the bonus and trade minimum before step into any trading. Some bonuses may be bigger than another and the trade minimum varies. Pick the broker with more bonus and lower trade minimum can help you optimize your trading.

Sufficient Positions – Bonuses make withdrawing money from your account difficult. Some brokers, the shadier one, will not let you withdraw any money until you meet the minimum trade limit. Other brokers allow you to withdrawal money with bonus deducted from your account. I do not want to imply that any of you are not able to turn $1,000 into $40,000 but I would like you to consider how can you boost your positions and meet the minimum. My friend told me that to make full use of the offer is a short cut. Except from the $10,000 bonus he got from deposit, he receive another $2000 cashback from the completed trades from his broker. By enlarging your positions you are increasing your chance of reaching the trade minimums.

 Hedging Strategy- A benefit of binary options different from other trading is that there are only two options, call or put. When you are uncertain about the market movement, hedging strategy should push you higher at turnover. Take for example, you invest $500 buying call options on gold, when the price goes unfavorably, another $500 or more put options on gold can be purchased to hedge your risk. You may earn or lose a small amount of money, but it ends up completing a considerable trading volume. More trading strategies are up there for you to discover and boost your trading power.

 Bonuses are often applied to your account after you contact their customer service and apply for it. In order to opt out you, the trader, are responsible for contacting their account representatives to specify the terms and conditions. Be sure to manage your trading power based on the terms and conditions before accepting them.
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Comments

  • lotzofbotzlotzofbotz Posts: 1,552 ✭✭✭
    Most bonuses are a TRAP and if they are not segregated = having no effect on our withdrawing your deposit then they are predatory in nature. Again the real damage of a bonus to a newbie trader that does not know what he is doing is it promotes over trading/over leverage/focus on money instead good trades on and on. They are primarily designed for the mentally handicapped not real traders.
  • dear123dear123 Posts: 83
    Bonuses can be tricky, they could only be used if the proper terms and conditions are known otherwise it will be difficult to return.
  • AnnaLeeAnnaLee Posts: 28
    Newbie traders are not capable enough to manage the bonus as it comes with considerable turnover required, and most brokers hide the terms and conditions for withdrawal. While there are some brokers that provide cashback from turnover that having no effect on your withdrawal.
  • lotzofbotzlotzofbotz Posts: 1,552 ✭✭✭
    Well the company you work for FX77 for example is not one of them you guys apply the same method of TRAPPING a customers funds with bonus turnover of over 45-47% ? So wtf is the point of your post Annabobanafefifofoanna Anna!? Its retarded if you are going to post at least post where it makes some sense maybe?
    Fx77 Bonus Trap.png
    399 x 155 - 27K
  • AnnaLeeAnnaLee Posts: 28

    Well the company you work for FX77 for example is not one of them you guys apply the same method of TRAPPING a customers funds with bonus turnover of over 45-47% ? So wtf is the point of your post Annabobanafefifofoanna Anna!? Its retarded if you are going to post at least post where it makes some sense maybe?

    why would you put a TRAP on all bonus? If it makes sense, all binary options brokers are scam. i post my thread here just provide an alternative for trader, what's wrong with the company i work for? it is the traders who decide whether to adopt a bonus or not, not you lotzofbotz!
  • BryanMacBryanMac Posts: 851 ✭✭✭
    You know i cant believe how these brokers have become so self entitled to scam people, that you would argue and post here. So basically your saying if people sign up with a 20x turn over fuck them they did it we got them. Nice just shows how self entitled you have all become. You all have lost all sense of what is right and wrong and are the reason binary options in the long run will fail.
    Bryan Mcafee
    Hit me up on skype at Brymcafee (McAllen TX)
    www.tradingaxis.com
  • AnnaLeeAnnaLee Posts: 28
    BryanMac said:

    You know i cant believe how these brokers have become so self entitled to scam people, that you would argue and post here. So basically your saying if people sign up with a 20x turn over fuck them they did it we got them. Nice just shows how self entitled you have all become. You all have lost all sense of what is right and wrong and are the reason binary options in the long run will fail.

    we can't never make a haste conclussion that binary options will fail in the long run. i don't know it either. binary options is one of the financial trading like stock or forex that carry significant risks. Be a smart and reasonable trader, that's the only thing i want to say.
  • dear123dear123 Posts: 83
    I guess bonus is not the only option to consider while choosing any broker imo.. one should consider other things too like regulations etc and so on.
  • JonHaltoJonHalto Posts: 27
    omg and smh...
  • lotzofbotzlotzofbotz Posts: 1,552 ✭✭✭
    lol this woman is funny... Yeah regulation is very important also not listening to brokers who are jokers and will make you broker...
  • LeelaLeela Posts: 6
    I registered with BigOption, I paid $250 but have not filled out the forms or given any further information on my personal details etc. I have told the broker who called me that I wish to stop the transaction and do not wish to proceed after reading the comments on binary options.
    My question to everyone out there willing to help is,
    Has anyone had BigOption remove money from their account without their consent? Your feedback would be greatly appreciated
    I need to know if I now have to cancel my account.
  • lotzofbotzlotzofbotz Posts: 1,552 ✭✭✭
    edited February 2016
    Good luck I would file a chargeback after you ask them to cancel the transaction. They will try to do whatever they can to keep your money... With them anything is possible...
  • LeelaLeela Posts: 6
    Thank you so much for your response Lotzofbotz, excuse my ignorance, but how do I claim a chargeback. I have contacted BigOption, they claim I did not make the payment to them, after they phone me to tell me they received the payment? I was told to contact the person I made payment to, I then contacted the only other person on the site which is Millionaire blueprint and they told me I need to contact the broker who is BigOption?
    I am so lost
  • OkaneOkane Posts: 995 admin
    Leela said:

    Thank you so much for your response Lotzofbotz, excuse my ignorance, but how do I claim a chargeback. I have contacted BigOption, they claim I did not make the payment to them, after they phone me to tell me they received the payment? I was told to contact the person I made payment to, I then contacted the only other person on the site which is Millionaire blueprint and they told me I need to contact the broker who is BigOption?
    I am so lost

    You could try winchargeback.com but read their terms. Also contact your bank first see if they can process a chargeback.
    Millionaire blueprint is a scam so your money is pretty much lost already and they are the last people willing to help you recover it.
  • JiglerJigler Posts: 34
    Bonuses in general is quite a risky topic and not only with this broker. You should take bonuses only when you're sure of your abilities.
  • bsbZenbsbZen Posts: 84
    Always be carefull with taking bonuses. Read the recommendations first about the bonus. Mostly they try to lure you with bonuses to try to lock your account.

    Greetings,

    BSB Zen

    blueskybinary.com
  • yasimyasim Posts: 4
    Be careful. You always must read about the terms and conditions about the bonuses.
  • sensafesensafe Posts: 1
    Well Think deep and understand the term is best option
  • mattmatt Posts: 6
    Very informative post that is whay I do not agree to take the bonusses.
  • RestrictoRestricto Posts: 11
    I've always said and always will that bonuses is a very slippery slope!
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