Without any doubt, all of us got used to the fact that broking companies offer various bonuses for new and existing clients in order to stimulate the client base and boost their trading performance. At the same time, traders can get an excellent opportunity to use those bonuses as a certain safety cushion to offset the risks. Still, CySEC, Cyprus 's financial regulator decided to ban all Forex broking companies from offering bonuses. Why did the regulator decide to make such an unpopular decision? Let's find it out together with Masterforex-V Academy…
CySEC Assaults On Forex Bonuses
Not so long ago, CySEC decided to make broking companies registered in Cyprus revise and toughen their bonus programs. The unpopular decision that will seriously change the entire Forex industry resulted from changes in the EU's economic policy. In particular, regulators intensified control over various financial institutions, including broking companies.
The bonus assault concerns both Forex brokers and binary option brokers. One of the key points of the new legislation is that brokers will get the right to distribute bonuses only when the client get an option of withdrawing funds freely at any moment.
Moreover, the regulator bans such bonuses that promote the idea of generating certain trading volume prior to getting the bonus.
If a broker wants to continue its bonus programs, the company will be obliged to provide detailed description explaining all the terms and conditions of obtaining the bonus. Even advertising materials now must include detailed explanations.
Masterforex-V Academy on Changes
Masterforex-V Academy has been an expert in Forex trading for years. It has its won project called Masterforex-V Expo, that monitors multiple broking companies by combining them into ratings in many nominations, including brokers offering their bonus programs. Apparently, bonuses may vary from broker to broker. They cannot be treated equally. While some brokers offer simple rebates, others may offer 100% or even 200% deposit bonuses (mostly on shady conditions).
The reason for most of those bonuses (not all of them) is to attract amateurs and gamblers seduced by freebies and to eventually make them trade big and lose big just to try to get the desired bonus. More often than not, brokers give traders only a couple of weeks or months to generate the required trading volume to be eligible for the bonus.
Anyway, the companies will have to obey to the changes in the legislation. Still, this will help to improve the industry and the quality of bonuses offered by brokers. Everyone will win in this situation, except fake brokers willing to deprive traders of their money. So, trader shouldn't definitely be disappointed since reliable brokers will continue offering their bonuses while fakes will disappear. By the way, if you are interested in bonus programs offered by various brokers, you are free to visit Masterforex-V Expo to the according rating. Good luck!
