Binary Options Bonuses

March 5, 2013 Posted in Uncategorized by No Comments

Introduction to Binary Options Bonuses

binary options bonusBinary options bonuses are additional trading capital that is added to the trader’s account as a form of counterpart funding by the broker in order to enhance the trader’s volume of trade. This should not be confused with forex leverage, as leverage is not obtainable in the binary options market.

The concept of bonuses is clear: provide more money to traders to be able to trade as an incentive, and by the increased trade volume, brokers would also be able to reap better returns as a result of the increased commissions that those trades would bring into their coffers. The concept of bonuses was borrowed from the forex market and almost every binary options broker has adopted the principle of giving out binary options bonuses.

Types of Binary Options Bonuses

There are several types of binary options bonuses, and traders can always access a particular bonus that is right for them. In other words, there is a bonus for every level of market participant in the binary options market.

The following binary options bonuses are available for traders on the binary options market.

a)    Account opening bonuses

About 99% of binary options brokers give out binary options bonuses to new traders. Bonus amounts range from 10% to 50%. We have carefully left out the “100% bonus” brokers. Many of these brokers who give out 100% bonuses are not genuine and they should be avoided. As a new trader, you should not assume too much bonus so you can learn to control risk with your own money. But it is always good to have some form of bonus to your capital, especially when it is not much.

b)    Special bonuses

Special bonuses cover a very wide spectrum but will include the following:

–       No deposit bonuses, which are famously given out by iOption and GTOption.

–       VIP bonuses, which are usually given out to traders who fund their accounts with large amounts of money, typically from $5000 upwards. These bonuses sometimes extend beyond financial bonuses to include travel allowances, gift cards and prepaid branded debit cards.

–       Volume trading bonuses which reward traders with the highest trade volume. Some brokers award this weekly and others award it monthly. Again the scope of bonuses may extend beyond financial bonuses and it is not unusual to see items like iPads, cards and household electronics being given out.

c)     Seasonal bonuses

This is the Christmas season, and it is times like this that traders can expect seasonal bonuses. Bonuses are also given during Easter and other special times of the year. These bonuses are given to active traders, new traders, etc. These bonuses are usually not discriminatory and are sometimes given out in the form of a raffle draw so everyone can get a chance at winning.

Using Binary Options Bonuses

Are binary options bonuses actually “free” in the true sense? They are really not free. They can only be used within the context of the terms and conditions that the broker applies to their use.

For instance, traders can only withdraw bonuses after generating a particular amount of money in trade commissions. Account opening bonuses also require the trader to make a deposit which is stipulated by the broker. Some brokers who give no-deposit bonuses may actually require the trader to make a deposit to be able to withdraw that deposit after a specified trade volume has been met.

Whatever the conditions attached to the use of a bonus, it is imperative that the trader reads the “terms and conditions” document for each specific bonus thoroughly so that there are no surprises at the end of the day.

There are bonuses that are given out for the most active traders. These are traders who make the highest number of trades in a week or month. Some brokers stipulate minimum number of trades, or minimum trade volume that must be generated. If a trader is not careful, it is very easy to jettison all rules of money management in chasing a bonus item which may not even be worth the trader’s capital. You need to ask yourself whether it is easier to trade gently and within the limits of money management so as to make money to buy that bonus gift item, or whether it is worth risking all your money pursuing the bonus.

Binary options bonuses are good, but do not jeopardize your trading career because of them. Use them wisely.

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