Bonuses come in many shapes and sizes varying from ‘No Deposit’ bonuses to ‘Risk Free Trades’. Below we will give some detail about bonuses, explaining each type, and also how to ensure traders can make the most out of any payment, never getting caught out. We’ll look at:
Binary Options Bonuses – An Introduction
Brokers in other trading sectors have always been able to offer their clients bonuses, but it was only after deregulation in 2008 that binary options brokers have been able to offer their clients bonuses as well. Currently it is very rare for a broker not to offer a bonus of some sort to a client.
Bonuses vary from broker to broker – some offer gifts such as tablets or mobile phones; or a simple Deposit Match bonus; or a No Deposit Bonus. Software or services which would usually require a subscription, may also be offered as a bonus.
With these bonuses there are the usual terms and conditions, as an example we use the ‘deposit match’ bonus: These additional funds that have now been added into a trading account, must be traded or ‘turned over’ a specific minimum number of times.
Once the terms have been met, the funds will become available for withdrawal. Gift bonuses will normally only be triggered after a certain amount of commission has been earner for the broker via trading activities.
This can be a wonderful offer where the first deposit can effectively be doubled, as the broker could match the initial deposit amount, or contribute a percentage. Effectively the client will have double the funds available to trade with, while the broker will have double the volume.
This type of bonus is usually offered to attract new clients and increase the broker’s market volume. Terms that apply to this type of bonus are usually time related, encouraging new clients to trade often and quickly.
Depending on the size of the initial deposit, and therefore the size of the bonus, traders should be aware of the turnover requirements prior to withdrawing profits. A large deposit and bonus would require a huge number of trades and turnover, while a smaller deposit and bonus would require a more size-able trading volume target.
Best Deposit Match Bonus
The leading offer for Deposit March bonuses is IQ Option which allows traders to cancel or opt out of the bonus at any time. The terms are also less restrictive:
Rating Payout Min Deposit Bonus Regulation
91% Up to 50% Yes
On occasion other bonuses are paid as well. This can be for various reasons such as:
Incentivising an inactive account to trade again.
Either when markets or brokers are quiet (flat) or even when the markets are volatile and traders are hesitant to trade.
High volume accounts which earned a cash back bonus.
In all instances the broker’s motivation is to keep the trader trading, and as such bonuses expires quickly.
No Deposit Bonus
A broker may offer a no deposit bonus on the odd occasion. As is evident from the name, this bonus can be paid without requiring a deposit. However, strict terms and conditions apply and it’s important to understand them. It would probably require extensive trading with set turnover volume, prior to making withdrawals.
A no deposit bonus may seem similar to a demo account as the funds carry no financial risk for the trader, but it is very challenging getting to a point where real money can be withdrawn.
Some traders prefer a no deposit bonus as this would allow them to try out the platform and binary options trading, at no risk. However the same could be achieved with a demo account.
Best No Deposit Bonus – Markets.com
Even though this type of bonus is becoming uncommon, Markets.com is currently offering a No Deposit bonus:
Rating Payout Min Deposit Bonus Regulation
95% ? ? No deposit T&Cs apply Yes Open Account
Risk Free Trades
The ‘risk free trade’ is another type of sign-up bonus. It allows a new client to use the platform and make a number or trades – but if they lose – they are refunded for the lost funds. Winning profits from trades are kept by the trader. As always, T’s & C’s apply, but they are generally less restrictive that other bonus types.
Normally profits made from risk free trade will have to be traded a number of times first before they can be withdrawn, fortunately the turnover requirements is well below that of a deposit or no-deposit bonus.
How to Make the Most of a Bonus
Research the exact terms – that is the key to making the best of a bonus! The bonus can be a great boost to funds, if the principles can be met while trading as normal. If the likelihood of meeting the turnover requirements are slim, then rather disregard the bonus.
A trader should continue trading as normal, and do not be temped to over bid in an attempt to meet the bonus requirements. A trader may turn a bonus down or leave the funds in the bonus account as is.
Should the trader know precisely how to use any bonus funds and are confident that the bonus stipulations can be met – then the bonuses can be a great asset and a useful way to fast-track fund growth.
Initially and with a little research, deposit bonuses can be a great way to boost trading funds. If you want to open a new account and know how to take advantage of the deposit bonus, then do so by simply trading as normal.
Brokers with leading sign-up offers are shown on our broker comparison tables. In addition, the trading blog highlights short term bonuses that brokers are offering.
The withdrawal terms and conditions is an area that should be fully investigated too. Less regulated brokers (none listed on these pages) may require a minimum turnover on the initial deposit prior to allowing a withdrawal.
Fortunately that is rare, but you should always read the fine print – if the terms are too difficult to meet, reject the bonus, you are under no obligation to accept it.