If the Sex Pistols labelled themselves “The Greatest Rock ‘N Roll Swindle” then Binary Options can surely be labelled “The Greatest Trading Swindle”.
100% Deposit Bonus! Make 80% in 5 minutes!
Above are two of the most common headlines you will see in relation to Binary Options trading – Both are part of the swindle!
In this article I will address the Deposit Bonus which is a reality and does indeed exist. Open an account with most Binary Options brokers and you will receive a Deposit Bonus which is, as mentioned, often 100%.
However, here is the swindle – Almost all Binary Options brokers insist that in order to withdraw your Deposit Bonus “the client must transact a turnover equivalent to 20 times the combined value of their initial deposit and the bonus amount”.
This means that if you deposit £1,000 and you get a £1,000 Deposit Bonus you must make bets (because betting (gambling) is what you are doing) totalling £40,000 (20 times £2,000 (your £1,000 deposit plus your £1,000 Deposit Bonus)).
So, let’s say you have an aggressive risk profile of 5% per trade. This works out at £100 per trade based on your £2,000 account. It means you must make 400 trades before you can even consider withdrawing ANY money from your account.
Now, let’s be a little bit more realistic because 5% risk per trade really is an aggressive risk profile. Let’s say you are more sensible and risk 2% per trade. You would then have to make a staggering 1,000 trades at £40 per trade before you can consider withdrawing ANY money from your account.
Fact – If you employ an aggressive risk profile of 5% per trade and you trade less than twice a day you cannot withdraw ANY money from your account for at least a year. Employ a sensible risk profile of 2% per trade and you cannot make a withdrawal for at least 2 years!
Binary Options brokers “bonuses” are a swindle and almost none of you will trade enough times or survive long enough (more on this in part 2) to ever make a withdrawal.
I intend to end each of my articles on this subject with an open offer – If you or anyone else has been profitably trading Binary Options for 12 months or more I will inform all of my members about you and your system/service. Here are my very conservation conditions:
- You must provide me with access to your Live account showing a profit (doesn’t matter how much) over a 12 month (or more) period and you must have traded at least once a week.
- You must continue to trade that Live account (at least once a week) for 3 months and still show a profit (doesn’t matter how much) at the end of that 3 month period.
- One final condition is that your risk per trade should be no more than 5% and your maximum drawdown should be no more than 50% – This is based on the fact I (and many others) consider 5% risk per trade to be more than aggressive and 50% drawdown to be less than acceptable.
[notify_box font_size=”15px” style=”green”]You CANNOT make a withdrawal from your Binary Options account (not even your initial deposit) if you have accepted a “bonus” unless you have “transacted a turnover equivalent to 20 times the combined value of your initial deposit and the bonus amount”.[/notify_box]
IMPORTANT – Jon’s book on this subject – Binary Options Trading – A Strategy Guaranteed To Beat The Brokers In 15 Minutes Flat – Is now available on Amazon HERE
More by Jon McFarlane…
