CySec Will Put the End Upon Binary Options Trading Bonus?
A recent turn of events has shaken the Binary Options industry: the Cyprus Securities and Exchange Commission (CySEC) is working hard to change the way brokerages offer bonuses to their clients. Ever since it first appeared, the Binary Options Bonus has been surrounded by a lot of complaints and angry customers because brokers used it to tie our money to their platforms. In other words, once you accept a bonus, your own deposit cannot be withdrawn until a certain trading volume has been reached. CySEC considers this is not “fair and good practice towards clients” and has decided to put an end to it. As a result, all Cyprus Investment Firms must clearly separate the monetary benefits (Bonuses) and the funds of the client. In other words, CySEC is trying to build a better trading environment by allowing the clients to withdraw their own funds whenever they see fit. According to CySEC Circular No. CI144-2014-02, granting trading benefits (bonuses) “… is permitted provided that clients’ funds are free to withdraw at all times and whenever the client wishes”.
What Do ThatSucks.com (former BinaryOptionsThatSuck.com) Think Of It?
Finally a major regulatory body is stepping in and tries to make it safer for us to trade. Our stance on the matter was very clear since the beginning: traders’ deposited funds are their own and should be available for withdrawal at any time. We complained in our reviews numerous times about the fact that brokers use the Bonus to lure unsuspecting traders into depositing and to hold on to their funds afterwards. It is normal to apply restrictions regarding the withdrawal of the Bonus but not regarding traders’ money and this Circular sent by the CySEC reestablishes the natural order of things: my money is my money and I can do with it whatever I wish. On the other hand, the Bonus is the broker’s money and they can decide under which conditions they will give it to me (for example, if I reach a certain trading volume). Of course, the Circular only targets Cyprus Investment Firms which are regulated and this in one more reason to choose your broker wisely. Overall, we see this act of the CySEC as a great development which will most likely contribute to the rise of binary options as a major investment instrument and more importantly, will provide us with a safer trading environment.
Binary Options Trading Bonus? What are We Talking About?
Deposit bonus is a well known promotion in the gaming/gambling/trading world. Most brokers will offer first time bonus upon deposit of between 10-100% of the deposited amount. Traders use to bonus to leverage their account, and brokers use bonus as an advertizing tool. While taking a bonus may increase your starting capital big time, it has some strings attached (Learn more about binary options trading bonus). Many traders complain that did not know of trading bonus restrictions and are unable to withdraw their first deposit unless they trade in a volume of 10-40(!) times the amount of the bonus. CySec’s latest announcement may put an end to these Wild West bonus promotions. Meanwhile, it is recommended to read the broker’s terms and conditions before depositing and considering a smaller bonus. ThatSucks.com (former BinaryOptionsThatSuck.com) team will keep monitoring the following CySec announcements.