Surely many are tempted by the opportunity to instantly double their deposit with a broker. Almost every binary options broker considers it necessary to announce on the main page a bonus of up to 100% on your deposit. But the terms and conditions of these bonuses are often written in very small print, and traders often do not understand what they are getting into when receiving such a bonus.
Let's look at what the welcome bonus from a binary options broker promises and how it is calculated.
The thing is that most often, having received a bonus, you undertake not to withdraw your funds until you complete a certain trading volume. Usually it is equal to a deposit x20, that is, if you opened an account for $1000 and received a 100% bonus, you will have to make transactions for $20,000. Not everyone, even a professional trader, is able to complete such a volume in a more or less short time. Therefore, for beginners, such a bonus will be more destructive than useful.
How are bonuses with simple processing calculated?
Recently, many young brokers, trying to attract as many traders as possible, use a slightly different bonus system. So, having opened an account with $1000 and received a 100% bonus, you will be able to withdraw your money after making transactions in a volume that exceeds your bonus five times. But at the same time, you can withdraw the bonus itself only after the same twenty-fold volume, that is, having opened an account for $1000 and received another $1000 as a bonus, you will have to make transactions for $5000, then you will be able to withdraw all the money that will be more than your bonus .
Example of calculating a deposit of $1000+$1000 bonus:
1 trade $1000=win
2nd trade $1000=win
3rd deal $1000=win
4 trade $1000=lost
5 trade $1000=lost
The trading volume is $5000, with an average trade ratio of 1.8, your balance will be $3000*1.8-$2000=$3400, subtracting the $1000 bonus from here, you can withdraw $2400 to your bank account.
Before receiving any bonus from a broker, be sure to check the conditions for receiving it. Do not trust only a telephone conversation or correspondence with your personal manager; be sure to ask him to show you the rules for withdrawing a bonus on the website.
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