Binary options brokers offer a variety of bonuses to traders. On this page, we will explain all you need to know about binary options bonus.
Please be informed that CySEC (Cyprus Securities and Exchange Commission) has announced that the Commission expects regulated entities not to launch any new bonus schemes to retail clients and let the existing ones lapse of expire or in any way cease to exist. In response to the regulatory changes, many brokers have ceased from offering any kind of bonuses to traders.
What is a Bonus?
You’ve probably noticed the term “bonus” as you browse the websites of binary options brokers. Bonuses are offered by binary options brokers as a way to reward traders and give the traders an incentive to trade binary options.
Types of Bonuses
The welcome bonus is the most common type of incentives offered by binary options brokers. It is provided to traders when they signed up and made an initial deposit to their trading accounts. The amount of welcome bonus offered varies from one broker to another. Some brokers can provide traders with a up to 100% welcome bonus. It means that, if you opened an account with the broker and made an initial deposit of $200, you will have $200 + $200 x 100% = $400 available for you to trade binary options.
Some binary options brokers offer different types of trading accounts, and therefore they offer matched bonuses to traders. In general, the trading accounts are categorized according to the deposit amount. The higher the amount of deposit, the more the bonus will be and the more exclusive services the traders can enjoy. For example, a binary options broker offers three types of accounts: Starter, Premium, and VIP. The amounts of deposit required for the three accounts are $200-$499, $500-$999, and $1,000 or above, respectively. The bonuses will vary and the broker offers 50%, 80%, and 100% bonus according to the account types. If you would like to trade with this broker, the more you deposit, the more the bonus you will get.
The deposit bonus (also known as “reload bonus” and “re-deposit bonus”) is similar to the welcome bonus and it is rewarded to traders when they make a deposit into their trading account. Unlike the welcome bonus which is only credited to new traders who make the first deposit, the deposit bonus is offered to traders when they make a second or more deposits. The amount of deposit bonus offered may vary widely depending on the broker.
Risk Free Trades Bonus
Some binary options brokers offer risk free trades bonus to traders. As the name of the bonus implies, a trader has the opportunity to place some risk free trades without risking his own funds. If the trader loses in the trade, he does not need to pay back the bonus, and if the trader wins the trade, he can receive the funds.
This bonus is only entitled to new traders who have opened an account with the broker and made an initial deposit. The number of risk free trades offered by a broker is usually limited, for example, 2 risk free trades. Depending on the amount of deposit and account type, some brokers can offer more risk free trades to traders. For instance, a broker may offer 1 risk free trade to a new trader for opening a Silver account, and 2 risk free trades for a Gold account.
The mobile bonus is offered by binary options brokers in order to allow traders to test the mobile trading platform. The binary options trading is a type of trading that can be carried out 24 hours a day, 7 days a week. Besides the online trading platform for PC, many brokers have also developed mobile applications for Android and iOS devices. Traders can easily download and install the application into their smartphones and they can trade binary options from anywhere and at anytime.
The mobile bonus is provided as an attempt to give traders the opportunity to get familiar with the mobile trading platform. Therefore, it is usually offered in small amounts. In addition, this bonus is only offered to new users of the mobile trading platform and it is offered only once.
Refer a Friend Bonus
The Refer a Friend bonus is provided by some brokers as a way of attracting more traders to their binary options trading platforms. If you refer a friend, who is also interested in binary options trading, to open an account with the broker and make an initial deposit, you will be able to receive a certain amount of bonus. Some brokers reward traders with a fixed amount of bonus for referring a friend. In some cases, brokers will also reward friends. There are also brokers who offer bonus according to the deposits of the friends. The more the deposit a friend made, the more the bonus a trader can receive.
Bonus Terms and Conditions
Bonus is a feature of binary options trading. Binary options brokers provide bonuses to attract more users to trade binary options on their trading platforms. Traders who receive the bonuses can increase their trading account funds. They will also have greater opportunities to make more profits.
However, it is very important for you to pay attention to the fact that bonuses offered by binary options brokers are hedged around with conditions. If you received the bonus, you may not be able to withdraw any funds unless certain conditions are met. One of the most common conditions imposed by binary options brokers is the minimum trading volume requirement. It requires traders to trade x times the value of the bonus amount before they can make a withdrawal. Some binary options brokers also require that the minimum trading volume has to be met during a certain period of time, for instance, 45 days.
For example, a trader opened an account with a broker and made an initial deposit of $1,000. The trader received a 50% bonus, so the bonus is $1,000 x 50% = $500. If the trading volume requirement is 20 times the bonus amount, the trader has to meet the trading volume of $500 x 20 = $10,000.
Bonus has both its pros and cons. Therefore, before you decide whether or not to receive the bonus, you should take time to read bonus terms and conditions carefully.
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