There are several binary options bonus structures being offered in the binary options market for first time account depositors. Some of these include deposit bonuses, no deposit bonuses and risk free trades. Brokers use bonus offers to try and entice traders to open accounts. Usually one has to trade 20 – 40 times the value of the bonus, before the bonus amount can be withdrawn. Bonus offers should never be the sole reason someone opens a binary option trading account, but it’s worthwhile to understand what is actually being offered and what the conditions are. If all other factors are equal and you are deciding between brokers it pays to take advantage of the best bonus offer and incorporate it into your trading progression.
A description of some of the binary options bonuses offered by brokers are as follows:
Deposit Bonuses: A percentage of your initial deposit is added to your account. The bonus amount usually cant be withdrawn until you trade a certain multiple of the bonus amount. Example: 20% bonus, withdrawal after trading 20x bonus amount. Trader deposits $500 he receives $100 trading bonus. He can’t withdraw the $100 until he makes $2000 worth of trades.
No Deposit Bonuses: Fixed amount bonus given to trader after he opens account, but before he makes a deposit. Trader can trade with the bonus amount before he funds account. Cant withdraw bonus until a specified multiple is traded. Example: Bonus is $100. Can’t withdraw bonus until 20x bonus amount is traded. Trader opens account and is credited $100 to his account before he deposits any funds. He can trade with that $100, but cannot withdraw the $100 until he makes $2000 worth of trades.
Risk Free Trades: Trader can make a predefined number of trades and if trades result in losses he can receive a credit in his account for the lost money. Example: Upon opening account and making minimum deposit, trader can make 5 risk free trades. If trader loses money after his first 5 trades he receives a credit into his account for the lost money.
Tiered Bonus Offers:
- Deposit between $300-$499 and receive a 50% bonus.
- Deposit between $500-$999 and receive a 100% bonus.
- Deposit between $1000-$3000 and receive a 150% bonus.