What are Binary Options Bonuses?
Bonuses are incentives offered by brokers in order to convince traders to register a real money account. Bonuses are basically “free” money offers that brokers give traders in exchange for either signing up or making a real money deposit. Binary options bonuses are a great opportunity for traders to boost their bankroll.
In the old days of Forex trading, promotions were virtually unknown. The concept of online trading bonuses was introduced to the business by start-up binary options brokers that didn’t have the large marketing resources of old-school Forex trading brokers.
These options brokers recognized that the most effective tool to convince traders to register and make a deposit is to give bonus money offers. This is how binary options promotions and bonuses were created. Nowadays, almost every options trading broker offers bonuses to its clients. (Source: Binary Options Blacklist)
How can brokers afford to give away “free” money?
Many traders find it hard to believe that some brokers are willing to give bonus money to their clients, however, the idea behind offering bonuses is completely rational. Brokers look at binary options bonuses as a form of marketing investment. Giving out these bonuses encourages traders to register and later on make a real money deposit.
A trader who registered and made a real money deposit because of a bonus offer might have otherwise never registered at the broker that offered the respective promotional offer. So, even if the broker was forced to give bonus money to that trader, in the long run the investment will return since that trader is highly likely to become a loyal long term customer.
Now, you need to keep in mind that by “free money” I do not mean money that can be withdraw right away and cashed in by traders. Bonuses are given for trading purposes (i.e. you can trade with it at the broker) but you cannot immediately withdraw this money before completing certain bonus clearing requirements (more about this below).
Are Binary Options Bonuses Really Free?
The bonuses offered by brokers are, indeed, technically free, however, most commonly they are tied to a real money deposit. What this means is that, in order to receive the promotional offer, traders will be required to make a real money deposit first. This might sound strange at first, but it makes perfect sense.
From a broker’s perspective, the whole point of giving out bonus cash deals is to gain new real money traders. If brokers didn’t tie their promotions to a real money deposit, then traders would just register, take the bonus, generate some profits with the bonus money and then cash all the money out and move on to the next broker with a bonus deal.
If the above scenario would be possible, then binary trading brokers would go bankrupt and the whole business would cease to exist. So, the fact that binary options bonuses are only awarded in connection with a real money deposit is perfectly normal and makes a lot of sense.
Can bonuses be withdrawn immediately?
Another thing about the bonuses offered by options trading brokers is the fact that traders cannot withdraw them immediately. Just think for a minute—if bonuses could be withdrawn immediately, then everyone would just register at a broker, claim the bonus, cash it out immediately and disappear right after.
Traders can only cash out bonuses in cases where certain so-called trading requirements have been met. Such requirements will require traders to trade certain volumes of assets in order to be able to withdraw the bonus. For example, if a bonus requires traders to trade 10x the bonus amount, then they will have to trade at least $1,000 if they received a $100 bonus.
However, remember that this is only valid on the bonus. This means that traders will, of course, be able to withdraw the actual profits they generate without any conditions attached. The trade volume requirements are only in place in order to prevent people from abusing the bonus by withdrawing it immediately and taking off never to come back and conduct any real trading activity.
Types of Options Trading Bonuses
There are many types of binary options bonuses. Traders are advised to know about each type of them in order to be able to recognize the best offers provided by options trading brokers. Below you’ll find a list of bonuses that are being offered by brokers.
The binary options first deposit bonus
This is the most common type of promotion provided by brokers. Such bonus cash deals are directly tied with traders’ first deposits. In plain language, traders will receive additional money for as a bonus if they make a real money deposit at the broker that offers such deals.
The most common type of first deposit bonus is the so-called binary options match bonus. This is the most advantageous binary options bonus type offered in the business. This is because the bonus money offered by the broker is directly proportional with the deposited amount.
For example, a broker might offer a 100% match on the trader’s first deposit. This means that, if the trader deposits, say, $500, then another $500 will be added into his or her account. However, like I said, initially the bonus money can only be used for trading (but with real money profits) purposes.
Sometimes there’s also a cap attached to such bonuses. Brokers obviously can’t offer unlimited amounts of bonus money, so, in most cases, there is an upper limit for how much bonus money a trader can cash in—however, most of the time this upper limit in the $1,000+/$10,000+ range.
The reload bonus
These offers are awarded to traders who already made a real money deposit in the past and would like to make a new one again in the future. Promotions of this kind give traders the chance to earn bonus money on subsequent deposits as well. However, most commonly, a bonus of this kind offers smaller rewards than the first deposit bonus.
The no-deposit bonus
Yes, some brokers sometimes also offer bonuses that do not require any real money deposit at all. However, the bonus money offered by such deals is usually very small. Trading volume requirements are, of course, also needed in this case as well otherwise people would just register at a no deposit bonus broker and take off with the money.
Best Binary Options Bonuses
In order to find the best binary options bonuses, traders should be aware of certain things first. One of the most important things to evaluate is naturally the size of the bonus money rewards promised. Size does matter when it comes to the best bonuses; the general rule is the larger the better. We’re talking about bonus money, after all.
The trading volume requirements should be low. We already explained that trading volume requirements are perfectly normal in financial trading. However, obviously it’s good if these requirements are as low as possible. Some lesser-known brokers sometimes have some ridiculous requirements of this kind, which basically result in traders never being able to withdraw their bonus. This should never be the case at a serious broker.
There should be no hidden terms and conditions attached to a binary options promotional offer. Some shady and illegal brokers may have some fraudulent terms and conditions attached to their bonuses that are meant to prevent traders from withdrawing them. A legitimate financial service provider never has such hidden conditions.
Toplist of Binary Options Bonuses
As you probably saw at the beginning of this page, we’ve created a list of the best binary options bonuses offered in the industry. While creating that list, we took into consideration the criteria we mentioned in the previous article segment.
We believe that the brokers we listed here are the ones that offer the best binary bonus deals in the business. Naturally, we only selected completely legitimate brokers that have valid online trading licenses issued by reputable countries and agencies.
Traders should definitely profit from the promotions offered by brokers. Make sure to get the best offer provided by legitimate brokers, and with the advantage gained by the bonus money reward you may be able to increase your profit margin in binary options trading.