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Binary Options Bonus
The Binary Options bonus has been offered by a large number of brokers in the past and is often seen in two lights. It is either viewed as a nice chunk of free money that the trader can make use of or it is viewed as a way for the broker to tie the trader down and restrict withdrawals.
This also usually comes down to the knowledge that the trader has of the bonus being offered. Traders who take the time to read the Terms & Conditions and understand what they are accepting tend not to get caught up.
At the trading club, we know the ins and outs of broker bonus offers and have had to help a number of members who have been caught up in bonus disputes. Our overview below contains most of the information that we were able to gather on binary options bonuses.
What is a Binary Options Bonus?
A Binary Options trading bonus is generally an offer from the broker to give you free money to trade with. This can vary according to a number of factors including the size, form and terms. The bonus is usually added to your trading account after a deposit and is sometimes seen as a nice buffer for the trader.
These bonuses are of course something that the brokers often compete on as they try to earn more clients. Indeed, it can be quite an effective way to get a new client over a competitor when your deposit bonus is larger than theirs.
However, Binary Option Bonuses have taken a lot of criticism in recent months due to the factors that the client sometimes does not know. These include restrictions on trading volume, withdrawals and payment forms.
Indeed, this has raised the suspicion of a number of regulators as well as they have taken a deeper dive into the operations of some brokers and how they manipulate the bonus system. Like so much else in the industry, if the broker is dishonest and unregulated then the client is susceptible. Yet, when used responsibly by clients, a binary broker bonus can be advantageous.
Types of Binary Option Bonuses
Just because something is not necessarily termed a bonus, this does not mean that it is not a bonus in substance. If the broker is going to give a new client something for free when they open an account with that broker then this is indeed a binary options bonus.
Some of these bonuses are more attractive for the client than others. Of course, what is really important before accepting any broker bonus is to make certain that you understand what the bonus entails.
Indeed, some brokers may offer a no strings attached bonus but these are usually few and far between. This is mainly because dishonest traders may use it as an opportunity to cash out free offers immediately.
% of Deposit or “Deposit Match”
This is the traditional binary option bonus and is usually given as some free money to trade with according to some percentage of the deposit. This bonus is applied to the account after the trader has deposited his initial investment.
For example, assume that the broker has a policy of a 50% welcome bonus to the client. In this event, if the client was to deposit $250 with the broker, they would be entitle to request the 50% bonus is applied to their account. This would mean that they have an additional $125 which they are now entitle to trade with.
Perfect for beginners!
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Good choice for experienced traders!
If the deposit was a 100% bonus then the trader would have got another $250 to trade with which would have meant $500 starting capital.
Risk Free Trades
As the name may suggest, a risk free trade allows the trader the opportunity to trade for a number of free trades on the broker. If the client loses the trade, then they have not lost any money. If the client wins the trade then they are entitle to the winnings. One can think of this in the same light as one would a free bet in sports betting.
This form of bonus is sometimes quite preferable for the trader. This is because the terms attached to the bonus are usually way less restrictive than deposit match types.
The number of risk free trades offered by the broker will vary but is usually between 2-5 risk free trades. Obviously, however many risk free trades that the trader is given increases the restrictiveness of the terms that are attached to these trades. The more risk free trades that the broker offers you the more likely it is that they will request some turnover requirement.
Binary Options no Deposit Bonus
Unlike the other two bonuses above, the binary options no deposit bonus will be given to the client without any funds having being deposited. Obviously, for a number of traders this may be an attractive option as there may truly be no risk involved in taking it. This may indeed be true but like all the other bonuses, there are usually conditions attached.
These terms and conditions will limit any withdrawals until a large amount of turnover volume has been met. They will usually also require these terms to be met within a relatively short period of time before any withdrawal can be processed.
Binary Option no deposit bonuses are also usually quite small and most are capped at $100. This means that it is unlikely that the trader will be making a large amount of money and being able to withdraw that easily in the near term. These are also quite rare these days as traders find it hard to distinguish between a live account with a no deposit bonus and a demo account.
Bonus Terms and Conditions
As mentioned, where the bonus usually loses some of its allure is when you are made aware of the terms and conditions that are attached to them. As with most things in life, reading the fine print can be one of the most effective ways to avoid being tripped up.
These terms and conditions usually have a few restrictions in some form that they apply. As you can see, broker terms can be quite restrictive and it is a good idea to read them thoroughly before you decide to invest money and take the bonus. Below is a sample of some bonus terms from the T&Cs of a binary options broker. We have highlighted the important sections which give information on the bonuses.
These binary bonus conditions usually come in the form withdrawal restrictions and time limits. In the latter case, the broker requires the trader to meet the trading conditions within a certain time frame in order to even have the benefit of the bonus. In the former case, the funds cannot be withdrawn unless turnover conditions are met.
With this bonus restriction, clients are unable to withdraw the bonus or profits associated with it unless a certain minimum trading volume has been met. This is usually based on a volume requirement and is a multiple of either the bonus or the bonus plus the deposit.
In other words, if there was a 25 time turnover requirement on the bonus, you would have to trade 25 times the bonus in total volume before you could consider withdrawing. For example, if you deposited $250 and got a $250 bonus, you would need to hit trading volume of $6,250 before you were eligible to withdraw it. Of course if the terms stated that the turnover was on the initial deposit plus the bonus it would be based on the $500 which would mean a turnover of $12,500.
This trading volume number varies quite a bit and can be lenient with only 10x or something quite high being as much as 40 times. Although bonus terms may seem quite harsh at first, one needs to also consider that the trading volume includes winning and losing trades. Hence, if the trader is indeed doing well on the bonus money then this counts toward the turnover number.
Although less rare than trade volume restrictions, some brokers have time limits (or a combination of both). These usually require the trader to make a certain number of trades within a certain period of time. This could range from one month to three.
Although some traders may find that the time requirement is less stringent than the turnover one, this is sometimes misleading. This is because the time requirement forces the trader to place a certain amount of trades in a limited period of time. It forces them to change their trading strategy and this is not always the best outcome.
At least with the turnover requirement, the trader is not forced to complete these trades within a defined time period. The trader will only be trading in market conditions which they are certain will result in a more profitable outcome.
These are usually some of the most unreliable proposals that we have seen. It is usually also this type of restriction which trips up new traders and leaves them feeling scammed. With a deposit lockup, not only are you not allowed to withdraw the bonus and the winnings, but you are also not allowed to withdraw the initial deposit.
This means that until you have met your turnover requirement, you are not even allowed to withdraw the deposit. We have not found too many brokers who will do this but the less honest ones are sure to apply this type of bonus. This is because a deposit lockup bonus is for all intense and purposes, an opportunity for the broker to take the client’s initial deposit.
Why Are There Bonus Restrictions?
Bonus terms really are an unfortunate by-product of receiving so called “free money”. Although traders can view them as a way in which the broker can tie them down to some degree, one can understand a brokers need for some degree of restrictions. Without them, there is no way for the broker to stop traders who request a bonus and then immediately withdrawing.
However, it is no secret that very strict requirements are a way in which the broker is able to ensure that the client will never meet the requirement. The client will keep trading for as long as they can to meet the requirement. If the broker is indeed dishonest, they will adjust this risk such that the client will eventually lose their entire deposit. We have covered this and a number of other Binary Option Scams previously.
Binary Options Bonus Regulations
Even though a trader should take responsibility for their own decisions when it comes to accepting a broker bonus, the regulatory agencies are of the view that the more novice traders require some sort of protection from broker bonuses. It is for this reason that CySec decided in 2020 that they would like to eliminate broker bonus offerings for those that they regulate.
CySec is the Cyprus Securities and Exchange Commission which regulates a number of the Binary Options brokers who operate in Europe. We have covered CySec Binary Options regulation before but this was a relatively new directive which was aimed at curtailing the practice of unrealistic bonuses.
This was also done in a conjunction with a directive to limit leverage on CFD accounts to 50:1. Although this means that brokers who are regulated by CySec cannot legally offer these bonuses anymore, there are no such restrictions in place for those brokers who are regulated by other bodies or even those that are unregulated.
Should you Take a Broker Bonus?
This is usually quite a contentious point. Although “free” trading funds is always a good thing to consider, it should only be taken if the trader is 100% certain of the requirements involved and is also confident that they will meet those requirements.
The trader should not be blinded by the prospect of a giveaway and should make the decision based purely from an analytical perspective. Only traders who have traded before and know the volume that they can realistically trade together with the time in which this can be done should take a binary option bonus.
Moreover, if you are a trader that is considering taking a binary options broker bonus, you should discuss the terms of the bonus with the broker on email. You should confirm on the record with the broker that these are the terms to which you both agree. It would also be prudent to take a copy of the terms and conditions on the website and save it as part of your own due diligence.
Indeed, there are other options that you could consider should you really want to take advantage of broker giveaways. One of the most common that most traders take advantage of is no strings attached free demo accounts. These entitle the Binary Options trader to trade with the demo funds.
Unfortunately, demo funds and the profits associated with them cannot be withdrawn. However, this is a good opportunity for the trader to practice their trading skills before they actually consider investing any of funds with the broker.
Of course, the benefit of the demo account is that it is free. This means that the broker should not ask the trader to deposit any funds before they are given the benefit of using the demo account. If the broker asks you to do this then you should consider this a red flag .
Once you have honed your trading skills, you could consider moving onto a binary options no deposit bonus. This is a nice transition between the demo account and the live account. There will be considerably less pressure on the trader when they are trading on a broker bonus compared to trading funds actually invested.
#1 Complete Guide to Binary Options
As a newcomer to the online trading world, you will come across several types of trading. One of them is binary options. It is slightly different from the other types of trading because it requires you to predict and bet on price movements of assets.
You have to be careful while trading on binary options. You must do your market research and chalk out your own strategies. The profits do come, but not without risks.
If you have never traded in binary options before, the following guide will help you to get started.
What are Binary Options? Understanding the Basics
Binary options have several names. Some of them are Forex or digital options, all-or-nothing options, barrier options, fixed-return options, and two-way options.
Investopedia defines binary options as: “A type of option in which the payoff is structured to be either a fixed amount of compensation if the option expires in the money, or nothing at all if the option expires out of the money.”
The word “binary” indicates that traders must choose between the answers “yes” or “no” to the question of whether an asset’s price will be higher or lower than the established level at a given point of time.
Binary Trading – Is it a Sure Way to Make Money?
To put it very simple, binary trading is not a surefire way of making money. Some traders do make profits, but most of them just lose their investments.
But you can definitely make binary trading work for you if you understand exactly why traders lose their money. In the first place, they go in for low time-frame trading. They believe that strategies such as the 1 Minute, 5 Minutes, and 15 Minutes strategies really work.
The truth is that these strategies are associated with high risks although they promise huge profits.
Secondly, they sign up at binary brokers who operate without a valid license and require traders to make first deposits in the range of $100 to $250.
You can succeed with binary trading only if you follow these tips:
Register only at licensed and reputed online binary options brokers. Understand the basics of binary trading. Create proper trading strategies based on your experience, study, and research. Avoid treating binary trading as a form of gambling and making predictions at random.
Binary Trading vs. Forex
To properly understand binary trading, you must also understand how it differs from forex trading. We take a look at some of these differences below:
Duration of the Trade – You can exit a forex trade whenever you wish—at stop loss or take profit or depending on what you see in the financial news sites or charts. You cannot exit a binary options trade whenever you wish because you have to choose its expiry time when you purchase it. This could be anywhere from a minute to 60 minutes from the time of purchase. Of course, there are binary brokers who allow an early exit, but only if traders invest a higher amount. Risk vs. Reward – Forex traders who have chalked out a proper trading plan are fully in control of the associated risk and rewards. Binary traders can control their risks, but not their returns. Average binary trading comes with returns of 65% to 80%, indicating that the risk is definitely more than the reward. Cost of Trading – Forex trading is associated with spreads, commissions, and swap/rollovers. In case of binary trading, there are no spreads, commissions, or rollovers. Volatility – The forex market is full of surprise volatility caused by unexpected events, which can convert winning trades into losses. Such surprise volatility does not cause any harm to a binary trade as long as the trader makes a correct prediction. Making Errors – The possibilities of making a human error are higher in forex trading than in binary options trading, which is one of the chief reasons for the popularity of binary trading.
How to Trade Binary Options: Your Step-by-Step Guide
Here is your step-by-step guide to binary trading:
Step #1: Choose a Reliable Broker or Online Trading Platform
If you have already decided to trade in binary options, your first step is to choose a licensed, reputed, and reliable online trading platform or online broker.
Some of the highly recommended trading platforms are Olymp Trade, Binary.com and IQ Option. All of them allow new traders to open a demo account free of charge. Since they permit a minimum deposit in the range of $5 to $10, beginners can get started with minimum risks. In addition, they all have learning centers featuring video tutorials, webinars, eBooks, and one-to-one courses to educate beginners, intermediates, and experts in trading.
Step #2: Create a demo account
Create a demo account free of charge and test the online trading platform before you actually begin to trade for real.
Step #3: Get Educated
The top online trading platforms offer plenty of free resources to train, inform, and educate registered traders. These resources are in the form of webinars, eCourses, eBooks, video tutorials, high-quality articles, and so on.
Step #4: Practice Binary Trading
When you feel confident to buy trades, spend as little as possible. Avoid investing too much.
Step #5: Understand the Risks
Binary trading is fraught with risks. The leverage can work both for you and against you, so it is highly possible for you to lose all your money. Invest in binary trading only money that you can afford to lose.
Tips to Choose a Binary Options Broker or Platform
You have to compare a number of binary options brokers before actually signing up for the services of one. Irrespective of whether you are a seasoned trader or a beginner, you have to find a broker who can best meet your requirements. Since it is not easy to find a reliable online platform, you should spend a few days just to research a number of ratings and rankings.
Here are a few tips to help you choose the best binary options broker:
Deposit Bonus – Binary options platforms offering the biggest bonuses also offer low minimum deposits. However, you will also come across brokers who offer low minimum deposits, but no bonus. Asset Classes – Trading platforms offer different classes of assets. While some offer just two or three, others offer up to six or more. You have to choose an online trading platform that offers the largest number of assets. You can always increase your profits by investing in multiple assets. Trading Tools – Make a study of the trading tools at different binary companies. You will come across free signals, indicators, calculators, and automatic trading features. You have to select a broker who offers the tools you require for successful binary trading. Demo Accounts – A demo account enables you to practice trading without risking any real money. It helps you to learn and grow as a trader and gives you the confidence to start trading for real. However, you must choose an online broker who offers a demo account for life. There are some brokers that offer demo accounts only for a limited period of time. Easy to Use – Sign up at an online trading platform that is easy to use as it will save you a lot of time.
Free Binary Options Learning Resources & Video Guides
The best binary options brokers not only offer a trading platform, but also a library of free educational material. You can not only trade, but also learn. Or you can sign up to learn before you start trading.
For example, Binary.com is home to the Binary Academy where you can read high-quality articles from experts, check out educational videos, watch the Binary TV, read the latest news, register for webinars, get weekly trading signals, read eBooks, and obtain daily market reports.
IQ Option is home to a number of trading tutorials and market news, which can better equip beginners for trading. And Olymp Trade has an Education Center with webinars, strategies, and trend indicators.
If you are a beginner, you don’t have to waste money on “premium courses” or “secret strategies,” which cannot really help. The wiser option is to just sign up at trading platforms such as Binary.com, Olymp Trade, or IQ Option and check out the free educational material there.
Finding Binary Options Strategies that Work
Beginners to binary trading often search for binary options strategies that work. But the simple truth is binary trading has no formula for success. You just cannot win all the time. In fact, you have to be prepared to lose most of the time.
You will come across strategies such as the 1 Minute Strategy, but you will ultimately learn that they don’t really work. They just promise you huge returns but mention nothing about the risks involved.
If you want to become a successful binary options trader, you have to create a strategy that will work for you, and you can do this only through regular study, market research, and practice.
A Word on Automatic Trading or Binary Robots
As you dive deeper into the sea of binary options trading, you will come across the concept of using trading robots. The idea of using a robot to make money for you while you sit back and relax is alluring. But if such a thing was possible, all of us would have become rich.
To put it very simply, you can only trust a robot you have created on your own. You will find several robots that use a variety of algorithms to trade and earn profits semi automatically or automatically. But you will be taking two types of risks if you purchase such a robot. First, the robot may not turn out to be as good as it was described. Second, the seller of the robot may be an unreliable company.
If you are still determined to use a robot, you may consider the following pros and cons:
Robots work tirelessly and do not miss any opportunities. Robots do not trade emotionally. Robots are fast. You can use robots to find inexpensive or free signals.
Since you have to connect the robot to your account, there is the possibility of someone accessing your information. Since the robot is not human, it lacks your creative mind. It is guided entirely by a fixed set of parameters and cannot be trusted to make decisions in unusual situations.
Experts suggest not using a robot at all. Instead, they advise traders to create their own strategies based on their trading style and their study of the market.
Binary Trading FAQs
Q1: Is binary trading legal?
A: The legality of binary trading depends on your country of residence. Some countries have banned binary trading, but others have legalized them.
Q2: Is binary trading a scam?
A: No, it isn’t. However, it is a type of financial betting that carries a lot of risks.
Q3: Is binary trading is form of gambling?
A: Binary trades are structured to resemble gambling, but on a closer look, they are just a yes/no trade. One can safely say that binary trading is a form of financial betting.
Q4: How does a broker get blacklisted?
A: Brokers get blacklisted when they operate without a license, force traders to make a very high first deposit, use aggressive selling strategies, and persuade traders to invest more money than they can afford.
Q5: How much money can you make in binary trading?
A: It depends on a number of factors. To make a lot of money, you have to take a lot of risks. And if you take a lot of risks, you may lose a lot of money. You can make the most of binary trading by keeping your emotions in check, managing your risks well, and continuously educating yourself.
The above information should be enough to get you to start trading, but we suggest that you trade with caution. Binary trading is not for the faint of heart and you should never start trading till you are prepared to handle all the risks associated with it.
7 Binary Options
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With a binary options bonus, you can trade with extra money. Some brokers will give you a bonus without a deposit required first and you can start trading freely with it. But most give you a bonus as a percentage of your deposit added to your account (called a deposit match bonus). (And even those who offer it for free will still require you to make a deposit, among some other rules, before you can withdraw any money won).
Binary options brokers offer bonuses as an incentive to attract new people to trading on their platform (or entice old users who’ve drifted away to come back). These bonuses can come in several forms: from the deposit match bonus, or risk-free trades, to more complicated packages, technological gadgets, or extensive training help.
In this guide, we’ll list and compare bonuses and go over some of the most common types. You’ll get a better idea of the right time to take a bonus. We’ll also explore some key aspects to make sure that any bonus you want to take offers a real advantage to you.
Too often, however, bonus incentives in binary options turn into a headache and frustrate traders. So you’ll also discover some pitfalls to taking bonuses and why you might want to refrain instead.
Binary Option Bonus Types
When a trader decides to take a bonus on a binary options platform, they do so with the intention of using those additional funds to make more trades without parting with more of their money. Or they try to lessen their own personal losses should they suffer any.
Most brokers offer a welcome bonus (which they’ll sometimes call a sign-up offer) intended to persuade new traders to register with that particular brokerage company. In addition to deposit match, you’ll also see the following:
- No-Deposit Bonuses
- Risk-Free Trades
- Refer-a-Friend Bonuses
- Educational material or courses
Bonuses, particularly the monetary kind, always have certain terms and conditions you have to meet. In them, you’ll find the most important points for comparing bonuses. And these are where traders can often find themselves getting tripped up if they don’t read and fully understand the requirements.
Say for instance, that one broker offers a large bonus that really catches your eye. Another broker, however, offers you a smaller bonus that you might want to dismiss on sight. But the smaller bonus might come with no strings attached, whereas you’ll have to meet some very strict terms and conditions to get access to the larger bonus. So bigger isn’t always better in binary options bonus world.
You get rewarded this bonus when you recommend a friend who registers and makes a deposit with the broker site. Afterward, you either get a specific amount of money or a small percentage of whatever your friend deposited.
This type of bonus also comes with additional requirements or a higher turnover necessary to receive it. So before you accept it, make sure that you understand those terms clearly.
Deposit Match Welcome Bonuses
Brokers most commonly offer the deposit match as their welcome bonus. Let’s say you want to open an account as a new trader. Your first deposit triggers the release of the bonus offered as you request, which usually equals a percentage of the funds you deposit. Maybe the broker agrees to match 50% of your deposit. So if you funded $300 into the account, then the broker adds another $150. Now your total account equals $450.
No-Deposit Required Bonuses
This bonus clearly states what it’s all about. You get a bonus credited to your free account without needing to deposit any money. It sounds like a dream, right? With this type of bonus, you really need to read the terms and conditions because it can be a nightmare in disguise.
An account with a no-deposit bonus behaves essentially the same way as a free demo account, except you do get to make live trades with it. But you’re unlikely to meet the strict criteria necessary in order to withdraw funds used to win trades with that bonus money.
No-deposit bonuses typically require you to make a higher amount of trades (or a certain turnover threshold met) within a certain timeframe before you can withdraw any money…including any of your own funds deposited afterward! You can see high trade amount requirements like 200 trades needed. Or perhaps you’ll need to meet a high turnover rate, like trading 40 times the deposit bonus amount.
And a broker might also require you to deposit money before you can withdraw any winnings you’ve earned using the no-deposit bonus. Regardless, you could spend a long time trying to meet these demands and that’s assuming you don’t end up wiping out your account beforehand. In that situation, you’d have been better off not taking a bonus at all.
Despite seeming like the broker has an unfair advantage with this type of bonus offer, brokerage companies rarely offer no-deposit bonuses because they don’t actually work well for them either. So they’ve shifted away from this to offering risk-free trades instead.
Risk-free trades represent another and newer type of simple bonus that brokers offer. And what makes them intriguing to traders is their less-restrictive conditions.
With a risk-free trade, you have the opportunity to place up to a certain number of trades and not have money taken from your account due to the losing ones. If a risk-free trade you execute loses, then you lose nothing (as if you never made the trade to begin with). But if it wins, then the profit gets added to the funds in your account.
Typically, you’ll see offers of three or five risk-free trades. But the more trades you can take without risk, the more conditions you must meet. One risk-free trade may have a stipulation allowing a payout of cash available for immediate withdrawal. But numerous trade offers without risk can result in terms such as trading the winning amount a specific number of times before you can withdraw it.
Bonus Terms and Conditions
You’ll need to keep a look out for certain issues when doing your bonus comparison. You can find them somewhere within the broker website’s terms and condition. But we’ll list some of the ones to check for yourself when you read the small print.
- Restrictions on Withdrawals: Just about any bonus you take contains some withdrawal caveat. Turnover requirements are typically, and some come with a time limit restriction as well. More stringent terms come with larger sums of bonus money. For example, a $50 bonus offer may require you to trade $1,000 worth of money (equaling a 20x turnover rate).
- Deposit Lock-In: Some bonuses don’t allow you to withdraw any money until you meet all the terms. That includes your initial deposit as well as the bonus money. Of course, this puts you as a trader at a big disadvantage. While rarely offered anymore, some brokers still do. Avoid them at all costs!
- Bonus Payment Distribution: Some brokers combine the bonus with your deposit into one singular amount. Others, however, will separate bonus funds from your deposited money. The latter situation usually offers a better opportunity to meet all conditions and allow you to withdraw it.
- Risk-Free Winning Trade Payments: Do you receive any winnings from risk-free trades in the form of cash into your account? Or do these funds get added as bonus money instead (and usually with separate requirements necessary for access)?
Claiming Bonuses At the Right Time
If you think the right time to claim a bonus is always when making your first deposit, think again. With some brokers, you may want to reject any bonus offer and only deposit the minimum required to fund your account. This way, you can test out the platform with real trading. See how it goes before committing to their trading requirements for the long-term in an attempt to get everything the bonus has to offer.
Have you tried automated trading yet?
Many successful binary option traders use the best fully automated trading software in the market that got the astonishing average winning rate of 91% in our test – Option Robot. The award winning software allows you to trade more profitably with less work. The best thing about it is that it is now completely free for our readers, but probably not for very long time, so I recommend you to try it out today.
Other recommended auto trading robots:
Then, after some time has passed, contact your broker and try to negotiate a more favorable bonus offer in exchange for making a larger deposit. The larger this deposit, the more open the broker will be to negotiating and therefore, the better the terms of fulfillment for you.
But perhaps you don’t want to go through all that hassle. If so, just stick to carefully researching the requirements necessary for any bonus offered. Ensure that you can comfortably fulfill them in line with your trading habits. Especially pay attention to turnover conditions and time restrictions for limits that need to be met.
Rejecting the Bonus Offer
Brokers like to persuade new traders to sign up and fund accounts with their company through the use of bonuses. And everyone wants free money, right? But with binary options, the money may not always come free.
So don’t feel obligated to take one just because they offer it to you. You can have several reasons for rejecting it. Below are just some of the reasons why that so-called free money may actually come with a price.
1) You’ll often come across broker websites offering $50, $100, even $200 for free when registering an account with them. Despite the promise of no payment needed, they still may force you to deposit money anyway to get access to the bonus money. And you’ll have to meet other requirements as well.
They may throw in an additional bonus too when you make that deposit, increasing the number or severity of conditions you must meet to withdraw the bonus(es). So make sure you understand what’s required of you before signing up. Contact the site for clarification if you need it.
2) Bonuses often increase the difficulty of withdrawing funds from your account. Shadier brokers will prevent you from taking out any money unless you meet their minimum trade limit. That includes not just the bonus or any deposit you’ve made but also any profits from winning trades using the bonus money.
And if you make a request to withdraw prior to meeting all their bonus terms, you might forfeit the bonus and any profits made with it. In fact, some sites state upfront that they won’t even give you the bonus money, just any profits made from trading with it after you meet all requirements.
3) Trade minimums for bonus access come with the territory but some are really high. It represents a certain dollar amount you must trade with before you can withdraw the bonus. Brokers use a formula to come up with this number. They usually base it on the amount of your initial deposit plus any bonus you’ve accepted. Therefore, if you deposited $400 and accepted a $100 bonus then $500 determines the minimum trade amount you’ll need to reach.
This minimum usually sits somewhere between 20 and 30 times the entire account value after the initial deposit. Some brokers, however, have it as low as 10 and as high as 40 or 50 times that. Meaning that an account with $500 must trade between $5,000 and $25,000 to access the bonus amount. And if you trade 1% of your account per trade, like most experts advise, then it could take you as many as 5,000 trades to qualify.
You can choose to trade bigger than 1% of your account, of course. But trading too big a percentage can lose you a ton of your money quickly.
Also, be careful when making your initial deposit. Brokers often apply them to accounts automatically when funded. So if you don’t want that, you’ll need to contact your account representative at the broker site and make another arrangement before giving them money.
4) Time Limits Necessary
Some deposit bonuses come with a time limit attached to them (usually 30-90 days). So you’ll have to reach the trade minimum necessary before time runs out in order to withdraw the bonus money. Imagine trying to trade thousands of times, up to thousands of dollars in a mere 90 days. You can easily feel forced into trading over your budget or breaking the rules of your trading system.
Of course, it could also inspire you to shoot for the moon, trading more aggressively (with larger amounts of money or more often) and putting greater risk on your account.
Looking for the Best Binary Options Bonus Offer
Finding the binary options platform with the best bonus offer for you comes down to researching each broker’s terms and conditions. And only you can determine if an offer suits you and your trading system.
A large bonus, while enticing, could end up being a waste of time and a source of frustration if you can’t meet their terms without risking your account. A small bonus with few or no requirements, however, can add a nice boost to your account without the headaches.
Any worthy broker will easily allow you to say no to a bonus. Some of them will even let you cancel the bonus while still in the process of meeting the requirements if you want. See any broker who attempts to force you into taking a bonus as a red flag. If it doesn’t suit your tastes, don’t take it.
Some binary options brokers like to offer bonuses to traders who’ve already deposited and traded with them as a reward. But those come with their own terms and conditions too.
These sites also continue incentivizing with bonuses upon sign-up or initial deposit because they know that your average trader will likely lose their money and quit before they can fulfill the terms. High minimum trade requirements and short time limits especially guarantee this. But each broker has different bonus rules so you should do your due diligence and read over them carefully.
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