Bonuses come in many forms. From risk free trades to a ‘no deposit’ bonus. Here we explore the background of bonuses and then explain each type, and how traders can ensure they get the most out of any payment, and do not get caught out. We will look at:
- Introduction to bonuses in binary options
- Deposit match
- No deposit bonus
- Risk free trades
- Making the most out of any bonus
We will also highlight the leading offers of each type of bonus, so that traders can get the best deals:
An introduction to binary options bonuses
After deregulation in 2008, brokers in the options markets were able to offer client bonuses, just as brokers in other trading sectors were. Since then, it has become very uncommon to find a binary options broker that does not offer a bonus of some description.
These bonuses come in a range of forms, from simple deposit match bonuses, to specific items like an ipad or tablet or even a no deposit bonus. Some brokers may also offer software or services (that would otherwise require a subscription) as a bonus.
Generally a bonus will come with certain terms and conditions attached. Where the bonus is additional funds into a trading account (a deposit match, for example) this normally requires that those funds are traded or “turned over” a certain number of times.
Only once these terms are met, will the funds be available to withdraw. Bonuses in the form of a hardware giveaway, are normally triggered after a certain amount of commission has been earned for the broker via trading activity.
This is paid when the first deposit is made, by the new account holder. It will normally be a percentage of the initial deposit, with anything up to 100% payable . Effectively doubling the first deposit. This sounds like a wonderful offer – and indeed it can be. The client has double the funds to trade with, and the broker can expect double the volume.
The majority of brokers will offer this type of bonus to try to attract new customers and increase their own market volume. The terms associated with the bonus are usually time sensitive, encouraging new account holders to trade quickly, and often.
In most cases, the size of the bonus will depend on the size of the initial deposit. Where this is the case, traders need to be aware of the turnover requirements in order to be able to withdraw profits. A large deposit and bonus, may mean a huge turnover requirement. Likewise, a smaller deposit, and therefore bonus, will require a much more manageable trading volume target.
Other bonuses are paid on occasion. These might be paid periodically for reasons such as;
- To try and get a dormant or inactive account trading again.
- At times when markets or brokers are quiet (flat), or equally, when times are volatile (and traders have taken a step back from the markets).
- Loyalty bonuses
- Cash back bonuses for high volume accounts.
As ever the motivation for the broker is the same in every case, to keep the trader trading. This sentiment is again evident in the terms and conditions where the bonus normally expires after a short time.
No deposit bonus
On some occasions, a broker will offer a no deposit bonus. As the name suggests, this is bonus paid without the need for a deposit. Again, terms will apply and it is important to read them. A no deposit bonus is likely to require extensive trading before it can be withdrawn. Turnover requirements within the terms are therefore a key detail to find out.
In many ways, a no deposit bonus is similar to a demo account. Simply because those funds carry no financial risk for the trader, but ultimately are very difficult to ever get to a point where they can be withdrawn for real money!
For many traders, the attraction of a no deposit bonus is the fact that they can try the platform, and binary options generally, at no risk. The same can be achieved via a demo account of course.
Risk free trades
Another form of sign up bonus is the ‘risk free trade’. This allows new customers to use the platform, and trade a number of times, knowing if they lose – the lost funds a refunded. Profits from winning trades are kept by the trader. While terms still apply, they are generally less restrictive than other forms of bonus.
Generally, profits from the risk free trade will need to be traded a number of times before they can be withdrawn – but the turnover requirements will be well below that of a deposit bonus, or no deposit bonus.
Hot to make the most of a bonus
The key to making best use of any bonus is to research the exact terms. If the criteria can be met whilst trading as normal then the bonus will be a great boost to funds. If it is unlikely that any turnover requirements will be met, then the bonus should be disregarded.
A trader must trade as normal, and not be tempted to over trade in a bid to meet the bonus stipulations. It is ok to turn a bonus down, or leave the funds in the bonus account untouched.
If a trader knows exactly how they intend to use any bonus funds, and is confident the terms of the bonus can be met without any impact on trading style – then they can be a wonderful asset, and a quick way to accelerate the growth of funds in an account.
Bonuses can be a very good way to boost trading funds initially. With a little research, those looking to open a new account can take best advantage of a deposit bonus that they know they can meet the terms of, simply by trading as normal.
Our broker comparison tables list the brokers with the leading sign up offers. Likewise, the trading blog highlights any short terms offers that brokers are running.
Another area of terms and conditions that must be fully checked is the withdrawal terms. Some unregulated brokers (though none listed on our pages) will require a minimum turnover requirement on both the deposit – and your initial deposit – before a withdrawal can be made.