It has been the practice of many Binary Options brokers to give customers a bonus and then prevent withdrawal of deposits until a certain trading volume has been met. Often times this stipulation is hidden in the terms and conditions and traders are surprised to find out that they cannot withdraw their funds until they traded the prerequisite volume. This has been one of the major scam complaints regarding Binary Options brokers.
In the past we have warned potential Binary Options customers to be fully informed of all bonus terms and conditions before accepting ac bonus and to be particularly wary of brokers that will attach such withdrawal conditions to deposits.
The CySEC statement reiterates that CIF’s must act in a fair, honest and professional manner towards clients and the these bonus schemes do not adhere to these standards. Firms must be sure to clearly describe the terms and conditions of bonuses and advertise such benefits in a clear way with not misleading information. They also must be able to clearly distinguish between customer deposits and bonus funds.
Although brokers may not tie withdrawal of account deposits to any trading volume requirements the withdrawal of the bonus itself can be tied to a trading multiple. In any case it is important to have clear understanding of the bonus terms before excepting the offer whether it be from a CySEC regulated firm or any other firm.
Please Contact Us if you have experience with any Binary Options firm that refuses to grant withdrawal of your deposit due to a bonus you may or may not have agreed to.
Awesome article! I could keep an on eye on your blog.
This is good news. My first experience with real money trading resulted in a loss because of the bonus I unwisely accepted. I even reached the required volume, but I had lost the whole stake, so there was nothing to withdraw. I thought they were a scam. Should I name and shame them now?