StockPair does not offer a deposit bonus. Compared to other broker, which sometimes offer a deposit bonus of up to 60 percent, this might make some traders shy away from opening an account with StockPair.
To help you make an informed decision, there are a few thing you need to know about a deposit bonus:
Of course we understand that getting a bonus on your first deposit with your new broker sounds exiting. Ask yourself, however, how much of a difference this bonus makes in reality.
A bonus is always linked to requirements. You cannot simply withdraw the extra money from your account, you have to invest at least a few times. That means, even if you planned to take the extra money and run, things are not that easy.
Things get even more complicated if you plan to start a long lasting trading career with this broker. If you invest in 5 trades per day, a low average for most binary option traders, you would invest in about 100 trades per month. Now let us assume that you win 70 percent of your trades. In that case you would win about 70 trades per months. When you invest with a trader that pays you a 2 percent higher payout on average, this would result in a 4 times higher bankroll (1.02 times 70 equals 4).
Now consider the fact that StockPair pays you a cash back of up to 3 percent for every trade (which amounts to a factor of 19.22, or 1,922 percent, over 100 trades), and you know how little other brokers’ deposit bonus of 60 or 100 percent is worth
In short: While a 60 percent deposit bonus sounds like a lot of money, it is nothing compared to other values. Even a 100 percent payout would not make a difference if you invested for at least one month for a broker. Never choose a broker because of the deposit it is offering you, and never discard a broker because of the deposit bonus he is not offering you.
As with most other advertising elements, a deposit bonus is meant to trick you into doing something you do not want to do.
It is a well-known psychological fact that people are more careless with money they did not have to earn but received easily. Binary option brokers that give you a deposit bonus hope that this effect will cause you to gamble your bonus away without sticking to your trading strategy, and that this careless attitude will cause you to lose the rest of your money, too.