You want to start trading with binary options or FX, so you have to create an account with a broker. So you think it is a good idea to look for a special deal, like a bonus or another kind of financial incentive like a risk free trade. At the end of the day, starting with a financial safety net gives you an advantage, right? What sounds like a great strategy will most likely turns against you. Here is why.
Why bonuses are potentially bad when opening a binary trading account
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While it may sound wise to seek a bonus when opening a binary options trading account as it increases the money available at your disposal to trade, it may also lock up your money by preventing you to withdraw before you reach a certain turnover. It can sometimes take a few months, or even more depending on your trading habits, before you can withdraw your money. Most of the time you completely dry up your funds before being allowed to withdraw anything. The bonus therefore becomes a burden. To achieve the turnover you might take unnecessary risks… and therefore blow your account very quickly. You lose, the broker wins.
Risk free trade?
We can say the same about risk free trade. If a broker wants to propose you such offer, it is strongly advised to read carefully the terms and conditions before committing. Most of the times any financial incentives offered by a binary trading broker come with the heavy restrictions. It is very rare that your original deposit is not the blocked by availing those enticing propositions.
In general, you are strongly advised to deposit small amounts. Since binary options trading is a high risk and high reward system, you do not need to start with a fortune to make substantial money if you are good at it.
While it sounds attractive, avoid brokers that offers such deals, as it is most of the time a red flag. And if you still want to avail such propositions, read very carefully the terms to know in what you are stepping into.