If you want to inquire about binary options trading on the Internet, you will inevitably always come up with the question of whether binary options are a serious service on the part of the broker or the whole thing is a scam. One could of course assume that the brokers' offices in countries such as Cyprus or Malta would make the providers inaccessible to the customer in an emergency. However, one should also consider that these countries are within the EU and are also subject to the guidelines of the responsible supervisory authority. The broker's seat is often chosen based on tax advantages. In addition, the customer can quickly determine through prior research which broker is reputable and which one should be avoided.
If you no longer have to question the seriousness of a broker, further questions arise regarding the Fees, deposits, withdrawals and promoted bonuses. We therefore want to focus on these topics in this article in order to show interested traders some basic structures in the trading of binary options Fees. There is no transaction fee of the kind known from stock or currency trading. The so-called spread, the difference between buying and selling price, does not exist either. Fees can only be incurred if the broker offers the opportunity to sell the binary option early.
Since there are virtually no fees, trading in binary options appears attractive on the one hand, but on the other also like a gamble. The broker compensates the missing fees by adjusting the returns. The customer can get up to 80% of their stake in most cases, but loses 100% of their stake if they choose the wrong direction.
Additional fees may apply to inactive accounts. If the customer deposits money but does not trade for a longer period (usually 6 months), brokers usually charge an inactivity fee. Brokers do this differently. Some charge a certain percentage of the account balance, while others charge a lump sum per month. The inactivity fee is also subject to a minimum amount of between € 5-10 / $ / £.
Deposits and withdrawals
Deposits are usually free of charge, subject to certain restrictions for the Deposit types, minimum amounts for the deposit amount and any country specifications.
The binary options broker BDSWISS, for example, offers the following deposit options.
- Credit card
- Offline Bank Transfers
The minimum amount is set at € 100 / $ / £. Most deposit methods generally have a short period of time until they are available on the trading account. In some cases, however, the decision can take a few days as with a normal transfer.
With BDSWISS in particular, payments can be made using the methods listed above. The minimum withdrawal amount must also be € / $ / £ 100. However, the payouts are often tied to other conditions. And that applies to most brokers. Therefore, the customer should take a closer look at the payment conditions. For example, BDSWISS reserves before paying 5% of the payment amount, but at least € / $ / £ 25 if the customer had not brought the deposited amount to full use in trading.
Furthermore, these provisions are usually not completely open explained, but can only be found in the terms and conditions. If the terms and conditions are then only available in English, the customer should consider whether he would rather choose a broker who also leads the terms and conditions in German to rule out inconsistencies from the outset.
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Bonus -Conditions must be observed
Another not uncomplicated undertaking are the widely advertised bonuses. These bonuses are linked to conditions that the customer should definitely study. The general terms and conditions are recommended to him here.
• 50% discount on trades worth 1,000 € / $ / £ • Automatic upgrade to a silver account and 1% extra profit • Free eBook
If we look at the conditions in the terms and conditions, we find that the following conditions must be met:
- Minimum deposit of € / $ / £ 300.
- Is granted only once and is only available for a limited period of time.
- Bonuses can only be paid out if forty times the bonus amount was traded, 60 times over € 4,999 / $ / £ and 80 times over € 9,999 / $ / £.
What strikes us is that granting bonuses is actually not a big problem. Only the payment of bonuses granted is subject to tougher conditions. The broker wants to make sure that the bonus is only used once for trading.
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