What are binary options bonuses?
My guess is that you have stumbled across multiple brokers offering attractive incentives to entice you to trade on their platform. Bonuses in the binary options are free money dished to traders by brokerage outfits. Well, everyone likes free money, right? Well, if your answer is yes, I am going to stop you in your tracks. Do you know there are different types of binary options bonuses? There are several types of bonuses with each type having its own terms and conditions. So, just a friendly advice; before you go accepting bonus offers from a broker you found on the web, take time and ask yourself; what’s the catch? No one gives money just like that, even proverbial Santa Clause gives gifts to well-behaved children (or so I was told many many years ago).There is always a catch whenever free money is involved.
Types of binary options bonuses
- First Deposit Bonus (Welcome Bonus)
- Deposit bonus
- No-deposit bonus
- Pending Bonus
- Limited-Time Bonuses
- Special bonuses
- Refer-a-friend Bonus
- Competition bonuses
- VIP Bonuses
If you are not new to binary options, you have probably noticed that there are different types of bonuses. Some of the bonuses offered by binary options brokers are discussed below.
First Deposit Bonus (Welcome Bonus)
The welcome bonus is the most common bonus among binary options brokers. As the name suggests, this type of bonus is offered to new traders on sign up. Well, the welcome bonus is ideal for traders who need that financial push in their initial trading endeavors. The welcome bonus is usually a percentage of your first deposit and ranges between 30% and 100%.For instance, for a broker offering 50% welcome bonus and you deposit funds amounting to 500 dollars, your trading account will reflect a cool 750 dollars(500 + 250(bonus)).A 100% welcome bonus will, in this case, translate to a total of $1000 in your trading account. Well, I guess what you are thinking of this juncture and no, you can’t just sign up and withdraw the bonus. If withdrawing the bonus was even a remote possibility, wouldn’t we all be signing up with brokers and getting free money? Welcome bonuses have wagering requirements that have to be satisfied before a broker can facilitate a withdrawal.
The deposit bonus is the most common type of bonus offered by almost all brokers. It’s actually straightforward and simple to understand. It goes without saying that you have to make a deposit to be eligible for a deposit bonus. Like most bonuses offered by binary options brokers, deposit bonuses come with a trading volume requirement and if you are not keen, it can complicate your withdrawals later. Mostly, deposit bonuses have to be traded 30x the bonus before they are eligible for withdrawal. If let’s say you deposit with a broker and in the process, you accept a 50% bonus which is added to the deposited funds. Later on, you may decide binary options trading is not for you but unfortunately, there is no way you can complete the withdrawal successfully. Even your money is tied up with the broker! It is always imperative to read broker’s terms and conditions before accepting a bonus. Unless you read the fine print of terms and conditions before accepting a bonus, there is a good chance that you will be inconvenienced when trying to withdraw your winnings. Actually, some scam brokers can use deposit bonuses with literary unachievable trading volume requirements to complicate the withdrawal process or to make withdrawals impossible altogether. Deposit bonus can be as high as 100% but most of the time, it may be capped at a given amount. For instance, a broker may offer a 100% deposit bonus but up to let’s say 1000 USD/UER. In such a case, even if you deposit $10k, you will only get a 1k bonus.
No-deposit bonuses are very rare in the binary options community and out of 10 brokers, you can find out that only one broker offers a non-deposit bonus. As the name suggests, a deposit is not a primary requirement to be eligible for this type of binary option bonuses. In most cases, to receive this type of bonus, you may be required to only submit initial registration details and your are good to go. Well, this is not usually the case with some brokers. Other brokers may require you to provide your credit card details to prove that you are serious about using their trading platform. This type of bonus has tons of string attached. For example, the trading volume requirement is usually higher compared to deposit bonuses. Still on the downside of no deposit bonuses, a broker may require the trader to make at least one deposit to be able to withdraw the non-deposit bonus (not free money anymore!). No-deposit bonuses are usually small, ranging between $20 and $100 depending on a specific broker. But hey, if you are looking forward to testing the trading platform, a no-deposit bonus will allow you to do just that without risking your money.
You have probably never heard of this one in the binary options circles .Pending bonus is more of a deposit bonus but with a twist. Similar to the first deposit bonus, it is usually a percentage of the deposited funds. However, in this case, you don’t receive the bonus instantly in your trading account. You only receive the bonus after stipulated trading volume is reached. Brokers offering this type of bonus have a bonus progress bar which you can use to determine how much trading volume is required to receive the bonus. Once the progress bar is “full”, the bonus is released and it’s immediately available for trading. In most cases, pending bonuses can be instantly withdrawn as they have less or no trading volume requirements.
Have you ever stumbled across a broker advertising a lucrative bonus but after a few weeks it’s gone? Well, a binary options broker may offer a bonus but for only a limited period of time after which the bonus is no longer available. Limited-time bonuses are all round and can be in form of deposit or no-deposit bonuses. Limited-time bonuses are hugely dependent on the broker and so is the wagering requirement. In a nutshell, limited-time bonuses are deposit bonuses with expiry duration. Limited-time bonuses are used by brokers to attract new traders and they also have wagering requirements.
A binary option bonus does not necessarily have to be free money. Some brokers offer special bonuses which are either supposed to improve your bottom-line or reduce the trading risks. For instance, a broker may offer first-time traders several risk free trades. Meaning, even if a trade ends “out of the money”, the trader does not stand to lose the invested capital. Instead, the investment is refunded in full. Risk free trades are extremely rare and they are offered by a limited number of brokers. Another special bonus common with binary options brokers is the “double your profits” promotions, albeit rare. With the bonus, the broker doubles profits made by a trader for a number of trades. Obviously, you will have to keep winning trades to get a sizable “double your profits” bonus.
The name speaks for itself here. You are paid to refer your friends to the broker’s trading platform via a unique link. This bonus can either be a one-time payment or it can be perpetual as long as the “referred” trader continues to use the platform. This type of bonus does not have a trading volume requirement and you can decide whether to withdraw or trade the bonus.
This one is self explanatory. You are eligible for a bonus after winning a completion. However, with some brokers, you can be eligible for a bonus just by the virtue of entering a competition. Competition bonuses are subject to change depending on competition rules from one broker to another.
In a bid to expand their clients’ base, binary options brokers may offer different bonuses levels for different account holders. A VIP trader is usually defined by the amount of the deposited funds. Regular traders like me and you can’t receive a VIP bonus unless the amount of the deposited funds is above a given threshold. VIP bonus can be as high as 10K depending on a broker. Like other bonuses, VIP bonuses also have trading volume requirements and this type of binary options bonuses is therefore ideal for institutional investors.
Final Word abut Binary Options Bonuses
Although the thought of getting free money is always welcome, there is more to binary options bonuses than meets the eye. Before accepting a bonus, it is always of vital importance to read the accompanying terms and conditions carefully. Read our reviews on binary options brokers to know different types of bonuses and promotions offered by specific brokers. If you can’t find your broker on our list, worry not, it will be available soon.