Due to new regulations in the EU many binary options brokers have closed their doors but in other countries with softer regulations, they still remain. Many binary options traders have moved back to traditional FX trading.
When you register with an account on a binary options platform, you will often be pleasantly surprised by the variety of bonuses offered. The binary options market comes with a lot of extras, including these generous bonuses which stimulate traders worldwide to trade in the market. The binary options market is exciting and thrilling, and the broker companies try to keep it that way with the numerous bonus systems as part of their package. Bonuses are leveled per account type, which means that they cover different target groups, be it beginners or passionate professionals. As a trader, always look for decent bonus offers and make use of them, perhaps even turning them into profits.
The Variety of Binary Options Bonuses
Not all brokers have the same bonus system, but you can be sure that the majority of brokers offer, at least, a welcome bonus. Moreover, brokers treat bonuses as a common courtesy, and they are an integral part of the trading business. Now let’s see what are the major and most popular bonus packages that most brokers offer to attract and keep traders. I would also ask the broker how many of the traders actully end up withdrawing profits compared to traditional FX traders.
Binary Options Welcome Bonus
There is almost no broker out there who does not reward newcomers with a welcome bonus, apart from in the EU following the change in regulations. The bonus may or may not require a deposit or an investment. That depends on the policy of the broker. The bonus represents a Thank-you-for-signing-up-with-us present. Most traders appreciate this nice gesture and use the bonus to test the market by placing their first trades. All you have to do is register with an account and make a minimum deposit (if required) and the bonus money will be added to your account. The welcome bonuses are either fixed calculated on the basis of percentage, and they usually come in the form of a 25%, 50%, 100% deposit bonus, etc. This means that the amount of the bonus depends on your investment.
The more money you deposit, the greater the bonus will be. This is a bonus specifically and strictly aimed at newcomers and can be used once. Regular traders, who have been using a specific broker for a while, cannot be granted a welcome bonus. The welcome bonus usually amounts to 25% or 35% of your deposit, but lately, it looks like brokers are competing to offer the highest amount, so it is not that rare that they’ll offer 100%, 150%, and even 200% on your first deposit.
As for welcome bonuses which do not require a deposit, they may amount to $25, $50, $250, etc. They cannot be calculated on the basis of percentage and are therefore fixed.
The No-Deposit Bonus
This is a kind of welcome bonus whereby you are not required to make a deposit. Since the binary options market recommends to sign up with multiple brokers to maximize your chances for potential gain, you may sign up with different brokers who offer the no-deposit bonus and trade from different sides with the free money you secured. Many brokers appreciate newcomers and new clients, and they really want to show their appreciation through the bonuses. This move is well-received by the client-base who enjoy the free money.
Read more about the No-Deposit Bonus…
Just like the welcome bonus, the deposit bonus is calculated in percentage, too. This means, again, that your bonus amount will depend on how much you invest. This bonus is added to your account when you make a transaction constituting a deposit. These bonuses are at a disposal across different customer levels: beginners, casual traders, and regular customers. Often called the reload bonus, this bonus works on a regular basis. This means that every time you deposit money (or quite often, at least), you will be rewarded by your broker with some extra money.
Read more about the Deposit Bonus…
The cash-back or rebate bonus refers to a special cash-back bonus offered to traders on losing trades.
Read more about the Rebate Bonus…
Mobile Trading Bonus
Mobile trading has become one of the most popular trading forms. Many clients find it convenient to be able to trade regardless of where they are. Broker companies support mobile trading and offer a bonus to mobile traders as well. All you have to do is download the trading platform of your broker to your smartphone device (either iPhone, iPad, Android, Blackberry, etc.) and you will be rewarded for this simple step. The mobile bonus is similar to deposit and welcome bonuses. The percentage or money amount offered depends on the broker. Although mobile trading has increased in popularity you must consider the implications. It could be harder to do solid more detailed analysis on a phone rather than a laptop or PC.
Refer a Friend Bonus
The Refer a Friend promotion is a great way for brokers to expand their client base. If you help them in the process, you will be rewarded. Refer a friend means that you can invite friends, acquaintances, and family members to join the community of your broker and you will be given your share of the deal. You can do it, for example, via posting the broker’s link on social media and anytime someone registers using that link, you get money. The Refer a friend bonus is usually calculated according to the amount your friend invests, or the number of friends who joined. Remember, the bigger the friend’s deposit, the bigger your reward.
Risk-Free Trades Bonus
This bonus is not part of the standard bonus package, and it is offered by a smaller percentage of brokers. Risk-free trades refer to the so-called free trading passes offering a fixed number of risk-free trades. This means that you have a couple of rounds to trade without spending any money. If you lose the trade, you do not lose any money, but if you win the trade, you will get the double from your broker. Beginners use this bonus to practice and to brush up their trading skills with no risk of losing any money. But, the bonus is not only meant for beginners; experienced traders enjoy a round or two of free trades as well. Usually, the risk- free trades bonus is not a standard offer, but rather a time-limited promotion available for a short period of time.
The Demo Account
The Demo account can also be regarded as a bonus, aimed at beginners and newcomers. They can practice trading and familiarize themselves with the platform for free. Most brokers offer free Demo accounts for all account types (which means you can even see what it’s like to have a VIP account for free). The account is solely a practice account, a simulation of the market, and you can neither lose nor win money. Consider the psychology of trading a demo account, the money is not real and there is no emotional attachment to winners and losers. It can be used as a good guide to strategy test.
Loyalty and Account Type Bonuses
Many brokers appreciate their long-term clients and always make sure that the customers have something to stay with them. Loyalty bonuses include many extras, privileges, and special treatment. These kinds of offers are not advertised on the websites of brokers, but traders will be informed about them when they reach a certain level. Then they will be advised to call customer support to claim the loyalty bonus. Similarly, the best binary options bonuses come with the Premium or VIP accounts, which offer more features and more generous bonuses then standard accounts. On the other hand, they also require extremely high deposits.
Terms and Conditions
The bonuses are usually accompanied by terms and conditions to be fulfilled. As a trader, make sure to read the terms and conditions of the bonuses. Sometimes, you have to fulfill certain requirements or meet specified criteria to either cash in or use the bonus as trading credit. Before deciding on a broker, take into account the bonus offer and decide which bonus system works best for you. The brokers on their part have to reduce the risk of abuse and determine these conditions which mostly exclude:
- Withdrawing bonus and leaving your account empty.
- Withdrawing the bonus without being active on the trading account.
Other requirements include that you have to spin a specified amount of trades to be eligible to withdraw the bonus. Most brokers require you to trade 20, 30 or 40 times to qualify for the bonus. The bonus policy can sometimes be hard to understand, since many people grow frustrated with the bonus procedure, especially when they encounter it for the first time. Also, some bonuses refer only to trading credit and not necessarily to cash money, which means that you can only trade the amount, and if you earn some profit, then you can withdraw it from your account. The initially awarded amount usually cannot be withdrawn.
Top binary options bonuses will be paid on time and in the manner specified by the broker. Many (poorly managed) brokers announce and advertise bonuses which simply do not correspond to the true bonus process. They promise clients easily claimable bonuses, and when time comes, they impose unfeasible conditions upon clients. Traders, especially beginners, should look for brokers who offer reasonable bonuses which correspond to the reality of the market. Top brokers will make sure to provide a detailed and clear explanation of the bonus policy and withdrawals, where you can see all the terms and conditions related to the bonus and the necessary requirements. In the Forex world bonuses are less commin, but you have to consider why. Could it be a more legitimate form of trading?