Believe it or not there is a bonus offered by a binary options broker that I can recommend. It is the the no-bonus bonus. What I mean is, sometimes the best bonus you can take is to not take a bonus. Bonuses can be bogus and it is no surprise that they are the main reason behind allegations of binary options scams. I readily admit that binary options brokers of ill and good repute have capitalized on the bonus at your, my and our expense. This is my guide into what bonuses are, the types of bonuses you might see and how they affect your account.
What Is A Binary Options Bonus
A binary options bonus is a sort of free money that a broker will give to a client. Bonuses are most commonly given upon the first deposit but can also come at the second, third or subsequent deposit or at any other time of the broker’s choosing. Bonuses are meant to be a gift to traders and an aid to the world of binary trading but in the end can be nothing more than a shackle for traders and a means for brokers to hold onto your money. Basically, a bonus is free money added to your account. If you deposit $200 and get a 50% bonus then your account balance is $300, + bonus requirements.
Not all bonuses are the same but there are some characteristics that are the same among them all and they should be considered when choosing a broker. First, all bonuses come with a deposit minimum. Even the free $50 sign up money requires a deposit before you can withdraw the “free” money. Once you make a deposit the bonus will usually be based on a sliding scale that increases as your initial deposit increases. Minimum deposits may get 20% or so, deposits in the range of $1,000-$5,000 may get 50%-70% and those over $10,000 may get up to 100%. It really depends on the broker, your deposit and where you live.
Free Bonus Money Is Never Really Free
Once you make the required deposit and get the bonus the “free” money is still not yours. You will have to make the minimum volume of trades before making any withdrawal. The easiest minimum I have seen is only 15 times the bonus. The worst is in the range of 50 times the deposit and bonus. At 15 times the bonus, if you deposit $5,000 and get a 100% bonus you will have to make trades in the amount of $75,000. That’s a lot of trades, not insurmountable but a serious obstacle for anyone who wants to have fast access to their money. And don’t think that you can trade your entire account 15 times, most brokers have a limit on trade size to prevent just such an attempt.
The worst bonuses have a time limit. I know that some of you out there will be tempted, even instigated or stoked, into attempting to beat them so be careful. Usually the time limit is 30 days but as I said before, each bonus is different according to the broker, you, your deposit and other factors.
How Does Binary Option Bonus Affect Withdrawal
- The worst brokers will not allow any withdrawal of any funds associated with the bonus.
- The average broker will allow withdrawal once conditions are met but will cancel the bonus, remove any profits associated with and apply any losses to you account if you try to withdraw before that.
- CySEC brokers usually allow some withdrawal of bonus money on a sliding scale as a percentage as the bonus requirement is met.
- Some brokers offer bonus as a form of insurance or risk free trading. You only get the money and are bound by the terms if you lose.
Should I Take A Binary Options Bonus
Hopefully by now you have read this post and can decide for yourself whether or not the bonus being presented to you is the one you want. Just in case, I have to say that you should not take a binary options bonus unless you have included it into your plans.
For traders a bonus is the chance at making some real free money but it will take some time. If you need, or may need, or think you might need or even just might want to withdraw some or all of your binary options money then a bonus is most likely not in your interest. If you have time, patience and a good system then a bonus could work out in your favor.