Bonus for Forex and Binary Trading?

Bonuses for retail trading are more common than ever.

It is incredible the number of apparently good bonus offers that we find around the Web.

Online trading bonuses

Offering bonuses is a technique especially used for forex and binary options brokers.

We can see everywhere thinks like this: “100% deposit bonus”, or “a “$100 free bonus if you deposit $200”, or offers up to thousands of dollars.

I am not really against bonuses for trading, but we have to separate the wheat from the chaff. And, there is more chaff than wheat here.

This bonus mania is nothing more than an aggressive technique strategy to attract naïve traders.

The truth is that almost nobody will collect those bonuses eventually.

Trading bonus free?

The key of the matter is to read carefully the conditions attached to those “offers”. Most of them, not to say the 100%, have some conditions for the trader that will be very difficult to be met.

You will most certainly have to trade a minimum volume to get the bonus, normally in period of time. People who are attracted to these “offers” are candidates for day trading, so they see no problem with it.

They think they will “make it” and collect the bonus. That is how the trap is made: on one side there are the brokers offering this “easy” money.

On the other hand there are the traders willing to do frequent day trading, thinking that it is the way to become a professional trader.

The result is that after some months, the vast majority of traders will have lost most of their accounts, not to mention that they will not collect any bonus.

More moderate traders who trade less and more sensibly will not meet the conditions to get the bonus. That is why swing traders do not care about these bonuses.

It is not that the bonuses are illegal, or that no one gets them. In fact, there are traders who do it, but for one who does, there are one hundred that do not. And, from those one hundred, the majority will have lost their entire accounts.

Online trading account bonus

A very good business for these market maker brokers when they have people doing day trading believing they have an “edge”.

There was a time in the past when I would open an account, thinking about getting some bonus. But, it did not take me too long to realize that trading not frequently you cannot get those bonuses.

Brokers offer the bonus because they know, statistically that the great majority of guys will not “make it”.

Market makers have a lot of employees to maintain. They cannot give money for free and pay their expenses.

If you want to make money trading it will have to be doing something else than day trading and getting bonuses.

Beware of bonus in Binary Options and sports betting

It is very difficult to win in forex and CFDs, but it is a lot more to do it in binary options or sports betting. I would say, it is almost impossible. The reason is simple: The conditions to do medium-term trading in forex and CFDs are not too bad.

In binary options and sports betting (a sort of binary options trading), the conditions to do swing trading are horrendous.

Why would a make a bet with an 80 to 100 payout?

The same can be said of sports betting, where odds are like 85% if you win and 100% if you lose for an event with the same probability.

It is just ridiculous.

I think that the number of guys who get the bonuses in these assets is not more than 1% of bettors.

Consequently, I think that people should forget about trading bonuses and stop trying to open an account in a broker because of a bonus.

When you open an account in a broker you should look for other characteristics like spread, financing costs, reputation, et cetera.

It is not that we have to reject a broker because if offers a bonus, but we should not pay attention to the bonus.

We should think about protecting our own capital. And, the best way to do that, is to trade infrequently, cutting your losses and letting your profits run when you get a trend.

 

Thanks for reading and sharing.

Related Post