You can have some extra cash for trading binary options from the binary options bonuses. You can have binary options bonuses sometimes after deposit and sometimes without a deposit. It depends on the policy of the broker what you are using. In most of the cases, brokers give a deposit bonus after you deposit for the 1st time. It’s called the deposit bonus.
It is true that the binary options broker always trying to attract the traders. Offering the bonus is one of the great ways for them to attract traders. Binary options bonuses can have different forms like the deposit bonuses and risk-free trades. There are many complex bonus packages too and in that cases, the brokers provide high-tech gadgets and training to aid the traders. You should remember that brokers know how to attract the customers.
In this article, I am Gary Wilson from Legit Binary Options Review trying to discuss the binary options bonuses and the major possible facts of bonuses considering your greater benefits. Sometimes bonuses become the cause of frustration for the traders.
Why this is happening and how can you avoid thus situation? Well explore with me, I think you will find the answers to your questions regarding binary options bonuses as well as types of bonuses and the perfect time to accept a bonus.
What are Binary Options Bonuses?
Binary options bonuses are the offers given by the brokers aimed to attract the traders by additionally funding traders accounts or to companionate traders for wrong trades. Generally, the brokers give the bonuses in the form of a welcome bonus, sign up bonus and deposit bonus. Welcome bonus and sign up bonus is working as the incentive for the traders.
You will find the below variety of binary options bonuses forms:
No deposit bonus
Hardware or prizes and
Keep in mind that binary options bonuses do always have terms and conditions. In the case of binary options bonuses, these terms and conditions are the most important facts for the traders. Because a small no strings bonus can be more effective for the traders than a large bonus and it entirely depends on the terms and conditions of the bonuses.
Example of Welcome Bonus
The welcome bonus is the most common form of binary options bonuses which is also known as the sign-up bonus or deposit bonus. After opening an account, traders first deposit in the broker platform triggers a bonus amount. This calculated on the deposit percentage. Let’s see a 50% deposit or welcome bonus deal below:
Suppose you are the trader and deposit an amount of $400 for the first time
In this case (50% bonus) you will trigger a $200 bonus amount and it would be added to your main account balance
Some brokers offer 100% welcome or deposit bonus. Then after first deposit, your account balance will be double.
What are Risk-Free Trades?
Risk-free trades is another form of binary options bonus. The main attraction of this bonus is that this bonus form has lesser restrictions than the other forms. This is a unique opportunity to place trades with lowers risk because if you did a wrong trade by this bonus amount, your account balance will not face any cut. But if your trade did well, your account gains extra cash.
The number of risk-free trades varies on the brokers, usually, they offer up to 5 risk-free trades for the traders. All the binary options brokers who are giving risk-free trades operates them in the same way. However, the broker with more trades has more conditions than the others.
Let see an example, for the good trade the broker pays in cash and it is available for the withdrawal immediately. In the case of more risk-free trades offered brokers a good trade can be turned over multiple times before the withdrawals.
This is why for comparing the bonuses, terms and conditions are so important. At the later part of this post, you will find more details about risk-free trades and I will discuss their risk-free trades are not totally risk-free.
What is No Deposit Bonus?
No deposit bonus is a form of binary options bonus where trades do not have to deposit to achieve this bonus. This bonus completely goes with its name. Frankly, for the traders, this is an amazing offer. But as always terms and conditions are the most important facts here too and these will be the key to your success.
In the case, if no deposit bonus a very high turnover is needed to make a withdrawal and to fulfill this requirement usually brokers give the traders a very short period of time.
If you carefully explore the terms and conditions, it will be clear to you that a real trading account with no deposit bonus is like a demo account. The reason of that, you will not able to withdraw the funds until you meet the criteria of the broker though the funds are likely to be withdrawn.
No deposit bonus is a rare type of binary options bonus. This bonus offer does not work well for all the traders or brokers. Many brokers switch their no deposit bonus to the risk-free trades which allows the traders to use a real live account with much lesser risk. Now a day’s brokers prefer risk-free trades over the no deposit bonus.
Best Times for Claiming Bonuses
After the first deposit claiming the bonus is not always beneficial for the traders. It is wise to open an account with the lowest deposit amount and turn down the bonus offers in some brokers. Trade for a time of period and then call the broker to negotiate about bonuses regarding a big deposit amount.
If you decide to invest a huge amount, then this can be fruitful for you. If your second deposit amount is bigger then you will have better and affordable terms for the bonus offers.
If this process does not suit you then you can research around the internet for better bonus offers and make sure it will work for you. You also have to make sure that you can fulfill the broker’s bonus conditions easily without changing your trading tactics. Turnover requirements are important and pay good attention to them, and also pay attention to the time limits in which time limits you have to meet their conditions.
Bonuses Terms and Conditions
You should well aware about some certain issues when comparing bonus offers. Normally in the bonus terms and conditions, you will find all the vital issues about binary options bonuses and you should check those in first priority. Below I am pointing out few key points of bonus terms and conditions which you must check for every bonus offer.
Restrictions on withdrawal – Most of the bonus offer have this issue. As the example, within a certain time period, you have to meet the turnover requirements. More restrictions are applied in the case of bigger deposit amount. The $100 bonus amount have to be turned over more than 20 times before withdrawal, if you invest $3000, it’s worth lots of trading.
A check is your deposit locked? – Some forms of bonus lock the initial deposit amount of the traders. So you can not withdrawal anything before you meet their turnover requirements. But thankfully this types of bonuses are rare in the binary options bonuses. If you find this type of bonus terms and conditions, you should avoid it immediately.
How you get your bonus? – It is better to have a bonus fund which is separate from your main deposit balance. So check how you get your bonus amount.
How you get paid from good Risk-free trades? – Check if your earning added into your account as cash or added with the bonus amount which has their terms and conditions for the traders.
Find Out the Best Offers
By checking the terms and conditions of the binary options brokers you have to find out the best offers for you. After that, you can compare all the offers and can select which offer suits you most. In maximum cases, a large bonus amount requires a large deposit amount with more restrictive terms and conditions.
It can be worthless for you if their turnover requirements make you do over trade. I suggest you go for the small bonus amount for a small deposit amount with fewer restrictions and that can be a good boost for your trading balance. When it comes to the binary options bonuses, biggest is not always the best for the traders.
Highly reputed and regulated binary options brokers tries to make the bonus terms and conditions comfortable for the traders. You can cancel bonus deals anytime in some brokers even though you take part some of the ways. If any broker pushes their bonus offers on you, mark them in a red flag and do not engage with them. The bonus offers down if it is not comfortable for you.
Reasons You May Not Want the Deposit Bonus
In the today binary options, market deposit bonus is a very common offering of the brokers. They use this offer to attract the traders towards their trading platform. It’s our nature, we love to have free money. But the question is it actually free for traders? I discuss some reason below that why the bonus amounts are not actually free what they seem and why you may not want them?
● Traders Minimum Issue – With a minimum trade every bonus offer comes to the traders. Some like that, you are away from just a dollar to gain a bonus or you must reach a dollar amount to withdraw your bonus amount from your trading account. Keep in mind that the minimum is based on your main deposit amount and then what about the bonus?
Well if you deposit an amount of $2000 and get a bonus offer of 50%, your minimum will be counted on $3000. So you can see that the trading minimum will be 20-30 times more from your main account balance. Considering the total account balance we have seen low trading minimum like 15 times and high trading minimum between 40 to 50 times.
This means that an account with the value of $3000 have to trade $45000 if you want to withdraw bonus funds. Do not damage your account for the bonus amounts. Trade with a small percentage of your account. Yes, you can trade bigger trades to clear the minimum quickly but that also has the risk of bigger capital damage.
● Time Limits Issue – Some deposit bonuses have a specific time limit but not all. Usually, the time limits are 30, 60 or 90 days. Between this time limit, you have to fulfill the trade minimum if you want to make a withdrawal. I am not saying that you have not the ability to make a $3000 account into a $45000 account but you should consider the time limit for that.
Over trading is not a good idea and I am sure you do not like to cross your budget amount for trading. The time limit is another issue that’s why you may not like to have deposit bonuses. Regular trading is better and has low risk than the larger amounts trades.
● Withdrawal Issue – It is difficult to withdraw money what you make from the bonus amounts. Some binary options brokers have shadier policies which will not let you withdraw your money unless you meet the turnover requirements and minimum trade limits of them. So you see in that types of brokers you can not make a withdrawal of your money smoothly which you earned as the profit based on the bonus amounts.
In the other hand, some broker has withdrawal requirements for the bonus and profits from the bonuses. You can withdraw only after fulfilling their withdrawal requirements. If you have an account of $3000 and you traded up to $10000 or $15000 then you might want to withdraw some profits out from your account.
● Free Sign Up Bonus Issue – In these days it is very common for the brokers to give away a $20 or $50 sign up bonus to the traders. Many binary options brokers give away that type of bonus as a gift to the customers after opening an account and it doesn’t require any deposit amount.
Without free sign up bonus, every bonus offer requires deposit amounts. Depositing money is the only way if you want to get a bonus though you also have met their bonus turnover requirements.
Based on the sign-up bonus you can get an extra deposit bonus but there the requirements for the bonus could be very very high. In this case, check the terms and conditions of your broker first. Brokers are using the bonus offers as the incentives to attract traders and of course, there are reasons for that.
The brokers know that before clearing the bonus requirements traders often lose all the deposited money. For that reason, the minimum requirements are very high and the time periods are very short.
Sometimes traders get emotional, they don’t judge and do over trade to fulfill the bonus requirements. This is the riskier part of your trading. You may lose more and more if you can’t control your emotional behavior.
I am saying again you must have to understand the broker’s bonus terms and conditions very well before accepting any kind of bonuses. The quality of all broker are not same and concerning their service and quality, every broker has different bonus terms and conditions if they provide any bonuses.
Sometimes bonuses are applied automatically to the traders account by the brokers. You can decline these type of bonus if you want. In order to decline this type of bonuses, you have contact with your account manager. Some binary options brokers offer time to time bonus and accepting them is entirely up to you but don’t forget to read their terms and conditions.
“Risk-Free” bonuses risk factors
The maximum binary options trader is unaware of the risks of the risk-free bonuses. You should feel lucky to be here today to know about this fact. Aren’t you? I am kidding. By the by, yes risk-free trades or bonuses have some absolute advantages if the trade does not go wrong.
But the fact is in this equation there are also some downsides and you should think about them twice before accepting this type of bonus. Below you will find the risk factor discussion about few types of risk-free trades because they are not totally risk-free what they advertised.
The No Deposit Bonus Offer or Free $50 Offering
In order to get start binary options trading, some binary options broker offers free $50 to the traders. This sounds amazing and traders can use this amount for the purpose of test trading like demo account but in real cash. You can make 1 or 2 trade by this amount of cash.
Some broker makes it more appealing by giving the opportunity to withdraw $50 after fulfilling the trading minimum requirements. It is common and usual that bonuses come with terms and conditions. But you should be aware of “tie-ins” because if you want to withdraw minimum deposit is one requirement and for the no deposit bonus this is true. Only after making the deposit you can withdraw for sure. Keep in mind that the deposit amount is far more than the bonus amount.
Risk-Free Trading or Free Demo Accounts
You can have a free demo account with only your email address in maximum regulated binary options broker. Don’t worry about the demo, it’s fine, they allowed you to check their trading platform in exchange for your email address and it’s a free service for the traders.
But it is not okay if they promote their demo account as to get it you have to make a deposit. That’s switch type of activity and secure for you. Because demo account is totally free for use to the traders, you don’t need to deposit real cash to use the demo account. So the brokers who advertise like if you deposit the demo account is free, just leave this type of broker without looking back.
The worst thing is that the brokers who are doing this type of promotion will not give you a real free demo account. They may give you a demo bonus based on your deposit and of course, unlike other bonuses, this bonus has also the trading minimums and withdrawal requirements.
Cash rebate sounds pretty good, aren’t they? Generally, this program requires a trading volume with the certain balance maintenance and minimum deposit amount. But you need to know something else about that program. You can get your cash back in some rebate program only if you lose.
You can get some of your loss of a specific month if you are a real loser. You will get nothing if you are a true winner. So you see if you are not a winner you have to make more deposit to maintain the requirements of your balance. Some rebate program does not want any minimum balance and in this case, to get it you have to lose all your cash.
More often as the bonus funds the rebates are paid and they have their own terms and conditions. This type of bonus is not so attractive to me. The decision is yours.
Out and Out Risk-Free Trade
Out and out risk-free trade is the worse offer of risk-free trading. Some binary options broker gives you the opportunity to risk-free trade for your first three trades. With a certain minimum deposit amount, this will come and this is an automatic bonus given by the brokers.
If the automatic bonus is not available there, then your losing cash turns into the bonus amount. There will be no ups and downs on your balance, you will not get any cash to lose any cash after making a risk free trade, and did you trade really? With the terms and conditions, your real cash turns into the bonus. And like all the other bonus offers for the hard terms, it is risky for the traders.