Binary Options Bonuses - The Basics
There is more than just one binary options bonus available when you start trading. Some of the possibilities include deposit bonuses, introductory bonuses and even risk free trades.
Getting to Know the Binary Option Bonuses Schemes
Prior to 2008 the binary industry was regulated and prevented from offering bonuses to customers. However, now that it has been deregulated almost every broker will provide you with a binary options bonus in some form. The reason behind this is simple; in 2008 there were just eight brokers; now there are over four hundred. Offering bonuses is a viable way to generate new customers.
It is possible to receive a bonus which matches your deposit or one that is given without you needing to deposit funds. You may also be offered a useful gadget; such as a tablet. There is even an array of services which are offered for free by a selection of brokers; this can be seen as other types of binary option bonuses.
Most of the binary options bonuses will be subject to specific criteria. For example, a deposit bonus will usually require you to place trades to the value of thirty times the original bonus before you can withdraw any funds. It is therefore vital to understand the bonus terms before you accept the funds. Equally, if you are being given something like a tablet it is likely that the broker will want you to earn a specific amount of commission through your trades.
The Binary Options Deposit Bonus
As its name suggests this binary options bonus is paid when you deposit funds with the broker. Almost every broker offers this type of bonus; the amount of funds you will get credited to your account will depend upon the amount you deposit. It is possible to receive one hundred percent of your funds as a bonus! This is an excellent help when getting started with binary options trading. The additional funds will allow you to place more trades and hopefully generate more profit.
This bonus is generally available to new customers in a bid to draw them in; once you have created your account and funded it with one broker you are unlikely to move to another.
There are two points worth noting. The bonus size is usually dependent on your deposit; however, bigger is not always better. The larger you binary options bonus the higher your turnover will need to be before you can access your funds. This may be difficult; especially as the second point is that the terms of the bonus will usually state that the turnover target must be reached within a certain number of days.
As well as introductory bonuses there will be times when these offers are used to get existing traders to trade more, or start trading again. This can be in response to market conditions which have stopped many traders from trading, or as a loyalty bonus, or even if your account has not been used for some time.
The No Deposit Binary Options Bonus
This bonus is a little harder to find; it allows you to start trading without needing to place any funds into an account. This is an excellent way of gaining a no risk introduction to the binary options markets. Of course, there will be terms applied to this type of binary options bonus and you must be comfortable with them before you accept the bonus.
The terms will usually make it very difficult for you to access any winnings until you have added your own funds to the account. Instead of seeing this as a way to generate profits you may prefer to see it as a way to learn the basics of trading; for free! The no deposit bonus provides you with the perfect opportunity to explore binary options and the different strategies available.
Trading Risk Free
This is generally a perk provided to the higher level accounts. You will be given a set number of trades which, if they do not go the way you expect will not cost you any funds. You trade as normal; but the risk free trade will return the money that you would simply have lost. There is always a limit as to how many of these you will receive; they can be a good way of testing the market or a new strategy. If your trade is successful you simply keep the profits.
These type of binary options bonuses usually have very few terms and conditions, but it is important to check them before you start trading.
Making the most of the Binary Options Bonuses on Offer
The first things to be aware of is that you do not need to accept a bonus. If you do not like the terms then simply tell your broker that the binary options bonuses on offer are not for you. It is important to be honest with yourself in this regard. If you are unlikely to reach the required trading amount then the bonus is of no use to you; it will simply hinder your access to your funds.
Equally, you should not over commit yourself in trades in a bid to reach targets. The binary options bonuses on offer are best used by someone who knows they will hit the turnover targets and can use the bonus funds to rapidly boost their earnings. Every bonus offers the opportunity o increase your funds at a much faster rate than normal; providing you approach it with the right attitude. If you need help deciding which is the right bonus for you there are several excellent comparison sites on the internet.
A final point regarding the terms of binary options bonuses is that the turnover amount which must be hit can sometimes prevent you from accessing the funds you deposited as well as any bonus related winnings. It is important to be aware of this and be prepared to reject the bonus; if necessary.
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