One common promotion in the marketplace causing headaches for day traders is binary options bonus scams. The typical offer requires a new client to deposit a specific amount of cash in a new account with a broker whereupon the broker provides trading cash bonuses based upon the deposit. Many traders are taken aback when the scam is revealed in the fine print of the offer. Here we will take a look at the types of binary options bonus scams that are out there and how to avoid the headaches associated with them.
New Account Incentives as Old as Banking Itself
Before we go off crying foul about monetary incentives for new accounts we have to be honest and say that too-good-to-be-true offers are as old as banking and money itself. How many of us have heard the old story about the couple who opened a checking account at their local bank with the promise of a free toaster only to have the new account representative tell them the toasters won’t be available until next month – or some other excuse to avoid handing them out. The unwary and reassured new customer signs over their money to the bank and no toaster is ever delivered and when they ask the customer service representative about it they act as if they have never heard of such a thing. So long as banks and financial firms are hungry for new business you can be sure they will cook up some scheme to catch the curious and unwary.
The Typical Binary Options Bonus Scams Setup
These days the scheme goes something like this: a new client is offered a percentage amount of bonus cash for opening an account and depositing a pre-set amount of funds. Sounds simple right? The new client thinks they can make a few trades with the bonus money without the worry of losing their seed capital. If they lose the extra money on their first few trades they expect to be able to withdraw their initial capital, close the account, and be none the worse off, right? Wrong. Turns out there is a considerable amount of fine print when it comes to binary options bonus cash offers. Panicked and shell-shocked new clients feel cheated and angry because the broker will not let them withdraw their initial deposit after those initial losses.
Who is right in this situation?
How do these companies stay in business if everyone is being cheated this way?
It Pays to Read the Fine Print When It Comes to Binary Trading Incentives
There are numerous stories (particularly in the early days – 2008 – of binary options trading ) where clients claimed of being cheated, customer deposits were being frozen or withheld due to misunderstandings about the terms of incentive offers. The fairly rich cash awards of those times seemed too-good-to-be-true – and to a certain extent they were. These days the awards are considerably less generous and restrictions much tighter on how the award money can be used and what volume is required to free up the funds for withdrawal. A long-time trader today would recognize what many called binary options bonus scams yesterday comparatively speaking would be some of the better / less restricted offers on the market today. Still – some good incentives remain for the savvy banking shopper.