Published by Sebastian Preiss on February 29, 2016

Binary Option Bonus

An ever more popular strategy, more and more binary options brokers employ, as part of their marketing campaigns, is to offer bonuses. A bonus in this context means a certain amount of free credit paid into your trading account.

This free credit gives you the chance to invest more aggressively and to earn higher profits on your trades. Bonuses are usually paid as a percentage, most commonly 100 %, of the amount of money you deposit into your account. There is usually a max amount of bonus you can receive. This limit varies greatly from a few thousand dollars to tens of thousands.

Bonuses can double your budget. Needless to say, this gives your career as a trader a flying a start.

What does a binary option bonus consist of?

Bonuses that are offered by binary brokers to new members consist of trading credit. They are worth certain amounts of money – up to $20,000 and more – but it’s important to keep in mind that the companies are not paying out cash. This is credit that you are obliged to invest with the broker in question.

Bonuses give you a great start as a broker. Because you have a lot of extra funds you can invest more sizeable amounts per trade, thereby earning greater returns on winning trades. The greater account balance also allows you to take greater risks, investing in more high-risk options than would otherwise be advisable. This can improve your profits greatly.

It is also true that many new traders will use their bonus funds to experiment a little. It is usually advisable to opt for a free trial with a broker if you would like to try out binary trading. That said, some traders insist that you need to invest real credits, with a chance to win real money, to get a genuine taste of what binary trading is really like. You just don’t feel an authentic sense of pressure when you’re only playing pretend with a free trial.

How do I obtain a bonus?

In order to obtain a bonus from a binary broker you usually only have to complete two steps. There are exceptions, but the great majority of companies will offer a bonus according to a version of the following procedure:

  • Open a new account with a broker for the first time
  • Deposit a certain amount of money into your new brokerage account

In most cases the broker will double your deposit. There is always a minimum deposit requirement. Usually it will vary somewhere between $100 and $250.

A majority of brokers will have a ceiling for how much they will pay out as bonuses. This limit can be as low as $2500 and as high as $20,000, but more and more companies are abandoning these restrictions in favor of limitless bonuses.

Another interesting development is that ever more brokers have started paying out bonuses also on subsequent deposits, not only the first one. As the competition hots up, it would not be surprising to see the brokers offer ever better bonuses. A bonus is a way to attract customers. As the competition for customers becomes ever more fierce, it stands to reason that the brokers will have to respond with bonuses that only keep getting more attractive.

Some things to consider about binary options bonuses

Bonuses make sense for brokers. It is of fundamental importance for them to attract as many new members as possible. They have huge marketing budgets. Of course it’s good business to use some of these resources on rewarding new customers.

That said, brokers are not in the business of handing out cash on random. Bonuses almost always come with two conditions that you ought to be aware of:

  • Time limits
  • Turnover requirements

Bonus funds are only valid for a certain period of time. If you do not invest the bonus within this limit, the funds will be withdrawn. As will any profits you earned whilst investing your bonus money. Usually time limits are somewhere in the region of 2-3 months.

The turnover requirement states that you will have to invest the bonus money a certain amount of time before you can make a withdrawal from your account. This makes sense, seeing as the broker obviously intends for you to invest the bonus funds with them. A typical turnover requirement will be around 50 times the value the deposit you made in order to get the bonus.

This means that if you deposit $200 and get the equivalent amount as a bonus, you will have to invest $10,000 before you can make a withdrawal. Please keep in mind that you can obviously make a lot of money whilst making investments totaling this sum.

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