This is a question some traders will be asking themselves in light of the upcoming changes in financial regulations in the Forex and binary options markets. Under the new regulations, bonuses previously offered by the brokers will no longer be allowed, leaving traders to work with whatever they have. To begin with, let’s admit we love free things, and some of the bonuses offered by brokers were pretty tempting.
However, I doubt any trader is going to suddenly switch to casino bonuses because there will be no trading benefits anymore. Keep in mind, these are my thoughts and I can’t speak for every trader in the world. For those who are curious, though, I’ll tell you why it won’t happen:
The Forex market is still less risky than gambling in a casino
Differences between gambling and trading make the latter less risky to your capital, bonus or no. For example, most forms gambling are based on pure chance, like roulette. You can never know if the ball will settle on green or red, just like a coin toss.
On the other hand, you can make nearly accurate predictions about Forex market movements if you do extensive research and analysis. Even without any bonuses, your money is still safer in the hands of a broker than a casino.
No one is actively pursuing your money… if you have the right broker
The best brokers only make money from the spreads in your trades, as is the case for ECN brokers. These brokers have no interest in your money whether you are winning or losing. Besides, the markets are too liquid for any one person to actively shift the markets against you.
As for casinos, your money is the only thing keeping them in business, so you know they will try their best to take it off you. This is why they are always restricting any edge you may have over them, like card counting. In short, they are vultures who will try their best to stiff you.
Just to reiterate, make sure you work with an ECN broker because others are just like the casinos.
Leverage is still there, even though it’s less than before
The amount of leverage is also going to be cut down to 50:1, but that is still 50 times higher than the casino’s zero-leverage policy. There isn’t a single casino that will offer you leverage, no matter how small, which leaves you with only what you got in hand.
Statistics published by the Wall Street Journal in 2016 showed that about 11% of online gamblers won. The rest just contributed to the casinos’ revenue. In Forex trading, the most encouraging statistics tell that between 10% and 20% of traders win. Less conservative statistics tell that less than 10% of all traders win. It shows that in both endeavours, many of the traders are losing, and by about the same percentage. In light of this, some traders could choose to switch to casinos because, after all, the odds of winning are almost the same.