Deposit Bonuses for Binary Options Traders
Before 2008, there was no such thing as a binary options deposit bonus. But following on from the industry’s deregulation in 2008, binary options brokers suddenly found a great new way to attract new clients. Bonuses had been around in other trading markets for many years, and had proved themselves to be very successful marketing tools. Nowadays, there are many binary options brokers offering some very attractive deals. However, as with many great offers, there is a downside to such schemes, and we’ll look at that a little later; but first, let’s look at the positives attached to a binary options bonus.
Bonuses come in many shapes and sizes, each specific to the broker offering them. They range from basic deposit-match bonuses to more specific offers linked with referrals, iPads, and tablets. Some brokers also offer a free service or software that would normally be paid for. Most bonuses, whatever type they may be, come with their own set of terms and conditions – and this is one thing you need to be wary of. If the bonus consists of additional funds added to a trading account, it is often a requirement that the funds are traded, or the binary options deposit bonus “turned over” a specific number of times. These terms have to be met, or else there is no chance of withdrawing any funds. If the bonus is a service or a software giveaway, it is often only triggered when the broker has earned a certain amount of commission through a trader’s activity.
What is a deposit bonus in binary options?
A binary options deposit bonus is paid when a new account holder makes their first deposit. Sometimes it can also apply to subsequent deposits. It could be 50%, 100%, or sometimes even more. Say, for example, the deposit bonus is 100%. In effect it serves to double the first deposit, which sounds like a brilliant idea. An investor has increased the funds available to trade with, and the broker can expect to increase the volume of trades. On the whole, this type of bonus is offered to attract new customers, and is often time-sensitive, which is meant to encourage clients to trade more quickly and more often. There are a number of other occasions when a deposit bonus comes in useful. These include the following:
- To encourage a trader to become active when their account has been dormant for a certain length of time;
- If the market is quiet, or the broker is experiencing a quiet time, but also if the market is volatile and traders are slowing down on their trading activity;
- As bonuses for loyal customers;
- As cash-back bonuses, often given to high-volume account holders.
There is only one real reason behind such offers, and that is to keep the trader trading. This is borne out by the fact that the bonus will expire after a short period of time.
Tips on making the best of a binary options deposit bonus
Even the best deposit bonus in binary options comes with its own set of terms and conditions – and these have to be looked at very closely if you want to make the best of such a deal. Provided you can meet the requirements, the best binary options deposit bonus is a great way to boost trading funds. If you think you may struggle to meet any turnover requirements, then it is better to steer clear of such an offer; however, there is a temptation to over-trade in order to meet the criteria, which should definitely be avoided. So should you take advantage, or steer well clear? If you have a plan for using the bonus funds, and are confident you’ll be able to meet the terms and conditions without changing your trading style, then bonuses are great. They are a brilliant asset, and a quick and easy way to speed up the growth of your account funds.
Initially, a deposit bonus is a good way to boost funds in a trading account; and with some careful research you should be able to take full advantage of the best binary options deposit bonuses – provided, of course, you are certain you can meet the requirements in the normal course of trading.
Another factor to be wary of is the withdrawal terms and conditions. Some brokers, offering what look like some amazing deals, require a minimum turnover on both the deposit and the bonus before you can request a withdrawal. It is wise to carefully check the terms and conditions, and if they don’t appear to be that good, turn down the offer of the bonus. After all, there is nothing that says you have to accept any kind of bonus.
Different types of deposit bonus offered when trading binary options
There are a number of different types of binary options deposit bonuses, so let’s spend some time looking at the different options to give you a better idea of what is on offer from the best binary options brokers:
- Welcome deposit bonus. This is usually expressed as a percentage, and only offered to new customers – hence the name. Say you make a deposit of $100 and the bonus is 100%, you will end up with $200 in your account to trade with, should you take advantage of the bonus.
- Ordinary deposit bonus. This bonus is awarded every time a deposit is made.
- No-deposit binary options bonus. This bonus is a little different, as there is no requirement to make a deposit into a trading account. It is often a specific sum of money, and is only available to new customers. It is a great way for brokers to attract new clients.
We briefly mentioned a downside to deposit bonuses, and this is usually tied up in the terms and conditions. Many bonuses come with some pretty hefty trading requirements, and it is tempting to up your game and increase your trading in order to benefit from the bonus. Not a very sensible move, though, as you should stick with your normal level of trading. The terms and conditions attached to the bonuses can be off-putting as well.