Making the Most of a No Deposit Binary Options Bonus – A Quick Introduction
Binary options trading has become a very popular form of investment, which means that more and more binary options brokers are joining the fold every day. Some would say that’s a good thing, while some will definitely disagree. We kind of sit on the fence here at topratedforexbrokers.com, but are here to help you sift through the many different options. And it’s not just the problem of choosing the best binary options broker. There is also the many bonus options available to pick from, along with a number of binary option types. Here, we’ll be spending some time looking at the deal called a no deposit binary options bonus, and help you decide whether it’s an option you should be considering.
Why did bonuses come about? Before the industry was deregulated in 2008, there were in fact no bonuses at all. But after deregulation, brokers caught on to an idea that had already proved very successful in other trading markets. Bonuses served to attract many new customers, and with the plethora of brokers now working in the industry, it is used to great effect. A number of brokers, both new and old-timers, are offering no deposit bonuses, as it is a really great marketing tool. After all, we all love to get something for nothing. There is, however, a downside, and we’ll touch on that a little later. But first, let’s point out that very little is actually given away for free. And the same goes for a binary options no deposit bonus.
What is a binary options no deposit bonus?
A no deposit binary options bonus is quite simply a trading bonus given to traders without any commitment to deposit money into a live trading account. In other words, a trader doesn’t have to fund a trading account with cash in order to trade. As they are able to use the no deposit bonus as their trading funds. Sounds pretty simple, but there is a rather ugly catch. However, before we look at the negatives, we have to say that a no deposit bonus can be a great way to start binary options trading and get some experience under your belt.
Top No Deposit Bonus Binary Brokers
|Broker||Min Deposit||Regulation||Bonus||Read More||Visit Site|
|uTrader||$200||CROFR||Up to 200%||Read Review||Visit Broker|
|24Option||$250||CySEC||No Bonus||Read Review||Visit Broker|
|HY Options||$100||CySEC||Up to $10 000||Read Review||Closed|
What is required to receive a binary options no deposit bonus?
There are no real complicated requirements for a trader to receive a no deposit bonus. All you really have to do is find a broker you like, signup, and register as a new client. No deposit bonus amounts vary from just a few dollars to a couple of hundred, and possibly even more. If you’re lucky you may even get an extra bonus, by signing up with an affiliate site like ours. Should you not receive your no deposit bonus immediately we’d advise you get in touch with the customer support department of the broker you’ve chosen. Some brokers don’t actually add the no deposit bonus immediately, and wait until an account has been correctly verified. The customer then has to email the broker and request their free funds.
Is a no deposit better than a deposit bonus?
There is really only one reason brokers use a no deposit binary options bonus. And that’s to attract more customers. They are in effect paying you money to trade using their platform. Unfortunately, there are often some really unfriendly withdrawal conditions which can make the whole idea very unattractive. Unless of course, you’re really serious about your binary options trading career, and are happy with the service your broker is providing. If you’re in for the long haul, then a no deposit bonus is an excellent way to start.
Always read the small print and don’t get caught out
So let’s look again at the terms and conditions, and why these are sometimes a big drawback with binary options no deposit bonuses. It’s pretty obvious that there is going to be a catch. Because what type of business is going to give you loads of free money. It just wouldn’t make good business sense. But to entice customers with the promise of free money, without explaining how difficult it will be to withdraw, well that’s a little sneaky, but you can’t blame them. We have all become very complacent with any kind of terms and conditions, and often just click in the box to say we’ve read them. When we blatantly haven’t. However, once you’ve committed such a sin you’re stuck with the consequences. And in this case the consequences can be costly.
In many cases you have to trade a lot to be able to withdraw your no deposit bonus. Even if you’ve managed to make thousands of dollars, unless you’ve reached the right trading level your money will be out of bounds. Even if you make a deposit later you are at risk of having your funds ‘locked’ and will never be able to withdraw them.
Let’s give you an example of the kind of terms and conditions you can be expected to comply with, if you want to withdraw any profits.
A general example of terms and conditions relating to a no deposit bonus of $200:
- A deposit must be made of at least $200 with the first 30 days of opening an account
- Trade volume must be equivalent to at least $20,000 if you want to withdraw any profits you may have earned with the help of the bonus
- Only $400 of profit is available for withdrawal
- If you don’t meet the requirements and withdraw profits from your account prior to completion the no deposit bonus will be null and void
- The no deposit bonus is only available to new customers and cannot be transferred between accounts
As you can see there are a number of terms and conditions that are really not very favorable for the trader who has decided to take advantage of the offer. What you have to remember is that bonuses are often used as a marketing tool, and they are really quite effective. But if you’re careful and take note of the terms and conditions you shouldn’t come unstuck.