Binary Options Bonuses are NOT LEGIT
Just recently the ESMA (European Securities and Markets Authority) published an update to their Q&A section regarding The Use of Trading Benefits When Offering CFDs or Other Speculative Products (such as binary options) under MiFID law. You can read our post about the update here: ESMA (European Securities and Markets Authority) – No More Binary Options Bonuses – (MiFID) Retail Investors Q&A Update
Binary Options Bonuses are Now Seen as Bad / Poor Practice Towards Traders
- Binary options bonuses can be a way for brokers to “lure in” unexperienced traders that are not aware of the high risks
- Binary options bonuses can turn a non risk taking trader into a gambler that takes big risks because it changes their psychology
- Binary options bonuses are unfair towards traders in the way that they make it hard for a trader to withdraw their money
- Binary options bonuses are unfair towards traders in the way that the broker uses “virtual” money that is not differentiated from the traders real deposit within the platform
We can go on and on about why binary options bonuses are a bad practice that many binary options brokers (if not all of them) have been using for over a decade in order to get more inexperienced traders to sign up, deposit and loose their money into the system, making the binary options trading arenas even more high risk then they already are. Anything that has a negative impact on trader behavior and psychology, anything that will make them more like a gambler and less like a trader – is a big no no in speculative trading.
Binary Options Bonuses are Officially Seen as Poor Practice Towards Traders
The new updates by the ESMA (European Securities and Markets Authority) state that EU binary options brokers engaging in practice of giving bonuses to traders are using “bad practice” and thus hurting their traders, making their traders much more likely to LOOSE their initial deposit with the act of giving them a bonus. These statements are facts that have been updated into the ESMA Q&A section regarding The Use of Trading Benefits When Offering CFDs or Other Speculative Products (such as binary options) and ultimately this means that binary options bonuses are deemed to be NOT LEGIT.