Free Money to Trade Binary Options, Take it or Leave it?
Free Money to Trade Binary Options…?!?
What, what? Where? I want some! It would be great to get some free money to trade Binary Options so I don’t risk my own money. But wait, if I ask a friend of mine to just give me money to trade, will he do it? Hmm, it depends, but he has to be a very close friend for me to say “Dude, give me 200 bucks as a gift” and for him to simply reply “Ok, take it” and hand me the money with no strings attached. So then I wonder: if a friend wouldn’t do it, why would a complete stranger do it? What’s the catch?
How does it Work? Myth or Fact?
There are some websites which offer you money to trade but there are always some strings attached. Yes, there are, even if the Live Chat representative tells you there aren’t. So please don’t believe that you will get Free money, just like that, easy, quick, no hassle and no strings attached. There are two ways to get this no-deposit trading bonus: either the broker will offer it or a third party website which is affiliated to a certain broker or brokers. But although you will find some websites that offer this kind of free money, you have to understand that there will be some complementary conditions which are usually well hidden.
After all, even the biggest companies in the world don’t give you Free money and there’s always a fine print. Sure, you might get some iPhone earphones if you buy the iPhone itself, but I don’t think you can go into an Apple store and say “Give me some iPhone earphones” and actually get them for free. So strings are always attached if you want free money to trade: some websites may require you to deposit if you want to withdraw the profits made by using the no-deposit bonus or they will require you to trade a certain volume or will introduce a time period during which you cannot withdraw. Anyway, some limitation will apply and you have to be aware of them. Once you know what you are getting into, it will be easier for you to decide if you want to accept that “gift” or not but always ask yourselves what does the website that offers the gift has to gain. The first and most important question you have to ask is “Why?” If we assume there are no “free gifts” in this industry, then we must also assume there is something to gain for the website/broker that offers it.
If you get your free money and you are okay with the conditions but they have something to gain from the whole thing, then there’s no harm done. Everyone wins. But what if those 10, 20 or 100 bucks you receive are used just to lure you into opening an account with a scam broker? If that happens, chances are they will use all kinds of tactics to make you deposit and never allow you to withdraw. So make sure you know the reason behind the free money you are receiving and if you have the slightest doubt, walk away.
There’s another peril you might encounter along the way and it has a psychological nature. Let’s assume that everything is legit about the free gift and you have your hundred green ones to trade with. Will you be able to trade it the same as if it was your hard earned money? Chances are you will think about it more as a demo account, virtual money than real cash. I know, a disciplined trader will recognize the opportunity he was given and will trade very responsibly, but even such a trader can fall into the trap of thinking “Ah, it’s free money anyway so let’s trade big and win big”. One or two bad trades will destroy your “free gift” account and you will be left wondering how that happened.
Remember – No Free Gifts!
Someone is always making money out of this free gift business. If they wouldn’t make a profit they wouldn’t do it. It’s as simple as that. But as long as they make money without scamming other people, it’s a win – win situation. However, the traders who accept these free gifts will have to pay it back one way or another but if they understand the implications and accept the terms of the agreement, it’s all good. One important thing should be remembered from this article: never choose your broker because you received some free gift. Choose your broker because it’s safe, reliable and offers you a professional trading environment.