The problem with non regulated Binary Options brokers is anyone can start their own Binary Options business for under $20,000, even as low as $12,000.
So you get unexperienced people out there (with money) who start their own Binary Options business.
But they may not always have enough money to pay people their withdrawl requests or winnings.
So they use various tricks and offer bonuses, with fine print, that requires traders to spend X amount of money on placing trades…the whole purpose is to keep them in their system so their chances of losing increases, and then the Binary Options broker accumulates money as their clients lose trades. (If they get clients that are winning too often, that is not suppose to happen, they need to do quick thinking to get them to start losing trades).
They make money when you lose.
So say half their clients lose and half win on the same trade.
The broker will pay the winners from the money of the losers, and then keep the remaining for themselves.
But a problem arises when too many of their clients win trades, and the losers are minimal.
Then they not only pay the winners all the money from the losers, but will need to get into their own money and pay them some of that too.
So what happens when the broker does not have enough money to pay everyone their winnings or withdrawl requests?
Then they get desparate and start playing games, and changing rules etc.
They can get away with all of this if they are not regulated.
On top of this they are probably spending money for their lifestyle, and at the same time are not getting enough clients losing, so their income is limited.
Then when you request a withdrawl the reason in some cases it may take a month is because the Binary Options broker doesn’t have enough money to pay you so they are waiting for their clients to lose more and more so they can use that money to send you your withdrawl request.
Whether all this is 100% accurate or not I don’t know.
I first heard some of this info in this video:
Binary Options Dirty Little Secret - YouTube
I am not saying these things are true of every Binary Options broker, but just use caution.