Saturday, February 1st, 2014 by Michael Freeman
In a recent update CySEC , the regulatory body that oversees Binary Options and Forex brokers, announced that all CIF licensed brokers will be held accountable for and prevented from offering ‘Cash Bonus’ incentives that requires traders to generate a high volume of trades, often equivalent to 40 multiplied by the deposit amount, before qualifying for a withdrawal. Bonuses will remain available for new traders and brokers will be permitted to continue with the incentive offers, only if the bonus does not restrict withdrawals and traders have access to their funds at anytime with no restrictions and hidden terms.
After receiving numerous complaints, CySEC took a step in an attempt to prevent the misuse of marketing and aggressive client acquisition tactics to attract new traders under unfair conditions and restrictions. This should come as good news for the Binary Options and Forex industry as well as for new traders who are not familiar with these restrictions and could potentially signup for more than they bargained for! Bonuses will still be available but with the new ban on unfair terms and conditions, traders can expect smaller bonuses and less attractive incentive offers due to this recent CySEC adjustment. This recent outline will definitely reshape the marketing and advertising decisions of brokers in 2014 since now the question is no longer “which broker can offer the biggest bonus? and instead, brokers will need to find other ways to attract new traders by maintaining good business practices that will include real comparative advantages while refraining from potentially, misleading cash offers!
It’s important to note that not all brokers are CySEC regulated and CIF license holders, therefore this recent announcement should not be taken as a general rule for all binary options brokers as many brokers do not report to or held accountable for their actions by the CySEC regulatory body.
Some traders might view this update as bad news because the bonuses are not necessarily bad. In many cases traders are fully aware of the bonus restrictions and are willing to accept the terms knowing that in return for free cash, they are willing to commit to a ‘volume of trades’ requirement and many experienced traders have been taking advantage of the lucrative new account offers with plans to trade over more than a few days. If you are a new traders and in the experimental stage, you should avoid any bonus offer that restricts your ability to withdraw your funds. Checkout the 15 Tips for Binary Options video for more online trading tips.