Recently I came across the following story of a trader, a little fascinated by binary options:
- “After reading a lot of books and testing the strategy on a demo account, I think you can start real trading. Deposited 1 000 USD and then the offer came from the broker to take advantage of the bonuses. Of course, I was pleased to see the amount in the account in 2 times more, that to me has played a cruel joke. I started to open positions and lose them one by one. It seemed to me that I can, and will have luck, so I deposited thousand by thousand. I used 200-300 dollars to support the trade, because I actively used the bonuses. And when I decided to withdraw money, realizing that the trade didn’t work out, it turned out that all my money was burned, leaving only the bonuses that cannot be withdrawn. The result is: 15 thousand dollars of bonuses and lost 10 thousand dollars of the deposit”.
The story is sad, but instructive. The trader has managed to make three errors in the at a time:
- it is impossible to trade from the entire deposit (and so it was conducted, if 30% of the deposit was not enough for the trader). Maximum lot size — no more than 10%;
- do not succumb to the desire to win! Made loss, stop, analyze the strategy, change it, try another asset. In this case, emotion and excitement were stronger;
- bonuses in binary options is a kind of a loan on certain conditions, but not the gift. The trader did not read the terms and conditions of the bonus program and was left with nothing.
And if about the first two rules was already written a lot, then about the bonuses we should dicuss more detailed.
Bonuses in binary options
First time opening a trading account and adding a deposit at the broker, you can immediately obtain bonuses to your account, tempting, right? This can be a fixed amount, can be a percentage of the deposit — in any case, he will make anything to tempt you with bonus program and took advantage of his offer.
About the bonus types in binary options trading you can read here in this article, I will focus on the myths that are somehow very relevant for novice traders.
“I took a bonus of $ 200. To withdraw profit, I have to have balance 200*15=3000 dollars.”
No, in this case it is a wrong understanding of bonus programs. Yes, 15-times multiplication takes place (each broker ratio may be different, the “15” is taken conventionally). To withdraw profits, it is important to have a balance of this size, and to conduct transactions for a total amount of 3000 dollars, profitable or unprofitable. In other words, your personal deposit you withdraw without problems, but if the trade is conducted on the bonus of $ 200, you have earned $ 500 and you think that you will be able to withdraw honestly earned $ 300.e. — alas.
“If I can’t win back the bonus, I will have to bring it back from my own deposit”
The bonus is given by the broker free of charge (in case of loss). If you lose the bonus, reimbursement to the broker is not necessary. The complexity is in the other, that burns first – the deposit or bonus? For example, there is a deposit of $ 100 and a bonus of $ 20, the balance is $ 80 sitting in it the bonus in $ 20.? I’m afraid that you will be able to withdraw only 60 dollars. Check whether there is a division on the main and bonus accounts and the use of bonuses, in order not to get into a situation written in the beginning of the article.
“If I was not able to win back the bonus, I will need to play at the next replenishment”
No. You had an account with a deposit of $ 100, the broker gave $ 20 bonuses. You lost all $ 120. During the next replenishment of the deposit you don’t need to return any bonuses to the broker.
“After the bonus in binary options trading iw won back, I can take it to me”
Alas, the bonus is not a gift, as it is commonly thought, the bonus is a loan. And you need to return it. Back to the first paragraph. Assume all trades are profitable, you have earned 2500 dollars (with turnover of 3000). Your net profit 2500-200=2300 dollars.
“After refillment I saw that the trading account is increased by the amount of bonuses”
Yeah, a cool trick from the broker — deliberately impose far not the best from a psychological point of view of the service. It’s like a Bank credit – you make a card and a as a gift , the bank sets a credit limit. Maybe you will need to use it. However, the loan can be waived. From bonuses too. Saw that a bonus in binary options is already on your account, contact your broker before the first transaction to write off bonuses.
And the last tempting offer from brokers – no deposit bonus! Open a trading account and… you have $ 100 on your account! You think that you earned $ 150 and may withdraw them giving $ 100 to the broker? In addition to the mandatory refill, there can be other pitfalls. Do not risk a minimum by your time!
Summary. In conclusion, a few tips:
- take the time to use the bonus program, even if the broker says that the bonuses in binary options only available the first deposit. First, there are the bonuses for the successful trades, and secondly, bonuses for a large amount of deposit. Thirdly, they still have to work;
- carefully read the conditions of bonuses! The number of transactions, minimum volume, conditions of withdrawal if the bonus is not processed etc.;
- take advantage of intangible benefits: a break-even deal (compensation for loss on the transaction), free trading signals, free training, etc. That is – use everything that you will not have to return.
And, of course, rely on your own strength, choosing a reliable broker. By the way, the more the broker has bonus programs, the greater the likelihood that the broker is trying to confuse the trader. Trusted brokers bribe the trader by fast execution of orders (Forex), easy money withdrawal and selection of tools.