What is Binary Options Bonus?
Binary option bonus is an amount offered by a broker to a new or an existing customer in an attempt to lure the customer to sign up with the broker or retain the existing customer. Regardless of the type of bonus the condition attached to the withdrawal and usage of the bonus are almost the same across all brokers. Binary options bonuses are real and you shouldn’t be skeptical over the bonuses provided you sign up with a genuine broker. With the bonuses being introduced by the brokers this means that the trader can increase their trading account balance and giving you leverage. The binary option bonus works like real money and you can enter into trades using the bonus just like the case of real money. In fact if you have the bonus the better for you since the bonus increases your account size, therefore the possibility of blowing your account is minimized so are the inherent trading risks reduced.
Types of Binary Options bonus
There are many types of binary option bonus offered by brokers. Binary brokers will use a combination of certain bonuses that they find fit to their business. Many brokers will offer more than one kind of bonus. The bonus types are different in their nature. Right from the time you get the bonus to the time you can withdraw the bonus. For instance the no deposit bonus is awarded if you deposit real money with a binary broker and you are capable to withdraw the amount if you reach the volume requirement set by the broker. With refer a friend bonus you get awarded the bonus once the customer you have referred have deposited real money with the broker. The following are the common types of bonuses; deposit bonuses, refer a friend, rebate bonus and no deposit bonus.
This is whereby new clients are offered bonus based on their invested amount. The higher the amount the higher the bonus and additional benefits. However, the deposit bonus has a limit meaning if you deposit past a certain limit the deposit bonus is still the same. Brokers have different percentages some 100% bonus of your deposit amount. Another scenario of deposit bonus that brokers offer to their clients is fixed deposit bonus where the brokers charge a fixed amount of bonus for a certain deposit bracket. For example if you deposit 500-$1000 you get a bonus of $400.
Refer a friend
This is a bonus whereby the brokers harness the power of networking by offering bonuses to clients who have introduced new clients. If the newly introduced client signs up with the broker and then deposits real money the referrer will be awarded with a bonus from the broker. The more you refer new clients the more you benefit from the bonus that the client gives provided the new clients meet the requirements expected by the broker. Brokers will reward you depending on the amount that the new client that you have refereed has deposited. If you have potential to get customer who deposit huge amounts the better for you. Preferential treatment is given to customers who deposit huge amounts this could mean they are given VIP status and their accounts are labeled as gold or may be platinum. This doesn’t go in futile since the referrer will be awarded refer a friend bonus.
Binary options Risk Free trade
This is a type of a bonus whereby the binary broker will offer the trader with risk free trades worth a specific amount. This means if the trader enters into a trade and the trade expires out of money the trader doesn’t lose money since the loss is insured. In case the trader’s contract expires in the money this means the trader has made money. This kind of bonus is offered in different kinds some brokers will offer 10 free trades each worth $5 others will give you $50 and let you decide how you will apportion the $50. All in all incase the trades expires in the money you have made money in case the contract expires out of money you haven’t lost any money since your trades are insured.
This type if bonus applies to losing trades. If your options end out of money (lose), some brokers share with you this loss. Most broker repay around 15% of your lost contract amount. This type of bonus cannot be ignored and it helps especially when you are on a losing streak. It helps keep the stability of mind since the trader knows there is at least some amount salvaged.
No deposit bonus
This is a type of bonus broker’s offer to new clients who have not made any deposit and they are intending to trade with real money. The brokers require the clients to sign up and meet all the necessary requirement of a real account. Thereafter the broker loads the client’s account with real money. You will be required to meet a certain trading volume before you withdraw the bonus money plus any profits made from trading using the no deposit Binary options bonus.
Advantage of taking bonus
Binary options bonuses are a boost to a trader. This is because if you deposit real money your trading capital will increase further and this increases the chances of you not running low on capital. A trader with good money management skills will enjoy this welcome bonus to the fullest.
Binary options bonus helps newbies and inexperienced traders to get a feel of trading real money with little risk. This is the case with no deposit bonus. Since with the no deposit bonus, the trader has the simulation of the live markets.
Brokers benefit from the increased odd of losing trade. Binary option bonus this tempts the clients to deposit more money because if you deposit more money the broker awards you more money.
Binary options bonus help the brokers keep a good relationship with the traders. Brokers who offer good bonus are more likely to have more customers. On the other hand a broker with no bonuses at all face is expected to have low numbers. The biggest binary brokers with the huge client base offer reasonable percentage of bonus will enjoy from the commissions and spreads at the same time the clients will enjoy from the bonus offered by the broker as well as the good relationship that the broker has established.
Binary options bonus can be counted as profits upon withdrawal. Traders who have met the terms expected by the brokers usually enjoy the bonus amount in full since the broker has no problem releasing the bonus amount. Therefore a trader with good trading discipline is will enjoy the bonus amount offered by the brokers.
Risks of bonus
Binary option bonuses have their own risks associated with taking the bonus. One of the most prominent risks relates to volume requirement. Brokers attach stringent conditions relating to the required trading volume that the client is required to meet for them to unlock the bonus.
Binary options subject the existing clients to the same conditions as new clients regarding the bonus. This looks unfair prima facie. An existing trader when making a subsequent deposit is required to reach the same volume requirements just like a new trader in order to unlock the bonus.
If the deal is too good think twice, this statement should be observed to the letter since there are unscrupulous brokers who taint the image of the genuine brokers. They do this by giving out false information about their products and periodically run promotion and advertise fake lucrative bonus. Once you sign up with them hardly will you get a customer service representative or an account manager to assist, your bonus claim also become futile. This happens more often to newbies who have little experience concerning the best binary options bonus and brokers. While seeking for a genuine broker you should be very cautious and you should use thorough scrutiny before you arrive at a binary broker of your choice.
Binary option bonuses are good if used well. A good application of money management skills alongside other strategies can help you reap from the deposit bonus offered by the broker. The shortfalls associated with binary options bonus and the increasing concerns from the financial regulators have made binary option bonus to be on the lookout. Some regulators such as Financial Futures Association of Japan (FFAJ) asking binary brokers to do away with bonuses and scrap out trade volume requirement pegged on bonuses. The Australian Securities and Exchange Commission (ASIC) and Cypriot brokers have followed suite making the same requests to the brokers. It is always prudent to check of your broker is regulated or not. Unregulated brokers are the perpetrators of online scam. If you settle for a broker who is regulated go through the terms and conditions and make sure you have made it clear regarding the bonuses that the broker offers before you settle down for a certain broker.