“Get a 50% bonus on your first deposit!” Offers like this are common on offshore trading platforms, including binary options brokers. They sound like free money, but bonuses usually come with conditions that can make withdrawing harder.
What a bonus is
A deposit bonus adds extra funds to your account based on how much you deposit. Deposit $100 with a 50% bonus and you may see $150 in your balance.
The catch: turnover
Most bonuses require you to trade a certain volume before you can withdraw. For example, a turnover requirement of 40× on a $50 bonus means you must place $2,000 in trades first. Because every trade carries the platform’s built-in cost, high turnover tends to reduce your balance before you can cash out.
Other conditions to look for
- whether the bonus locks your own deposit until turnover is met;
- whether profits made with bonus funds can be withdrawn;
- time limits for meeting the requirement;
- what happens to the bonus if you request an early withdrawal.
A simple rule
If you cannot explain the bonus terms in one sentence, decline the bonus. Many experienced traders refuse bonuses entirely to keep withdrawals simple.
Platform example
Pocket Option, for instance, offers promotional codes and deposit bonuses with turnover conditions set out in its terms. An honest Pocket Option review can help you understand how these work in practice and how they affect withdrawals.
The bottom line
A bonus is a marketing tool, not a gift. Read the terms, calculate the turnover and remember that the simplest account is often the easiest to withdraw from.