In the last few years, binary options have enjoyed an exponentially growing popularity. As a consequence, more and more brokers are have joined the market and are now joined in a continually strengthening competition and thus their binary option bonus – a gift for traders all round.
Making good use of a your binary option bonus can help you quick start your career – if you do it right.
When you register with a broker, most brokers offer you a free bonus that are meant to attract new customers and can make a big difference at the beginning of your trading career. In general, there are two types of bonuses:
Of these bonuses, most traders find the money bonuses more attractive. Those bonuses can indeed be highly rewarding, offering you thousands of Dollars in free money.
Money bonuses work in a simply way: When you deposit money with your broker, your broker will add a certain percentage of your deposit to your final account balance – for free. With some brokers offering deposit bonus of 100 percent and more, this means that you could end up with an account balance twice as high as the amount you deposited – a great boost to your early career stage.
Some brokers offer this bonus on every deposit that you make over the course of your career, some brokers limit the bonus to the first deposit. Make sure that you know your broker’s policy before you sign up.
The exact height of the bonus differs from broker to broker. Most brokers also tie the bonus to an account model, offering higher bonuses to traders that deposit more money. Again, check your broker’s policy before you deposit. Sometimes, you might get a better bonus by depositing only a little more money, which can make a big difference in your final account balance.
Simply depositing money with a broker is not quite enough to get a bonus. Think about it: If a broker would simply double the money of everyone who deposits money with the broker, everybody would deposit money and immediately withdraw it again, thereby making a nice profit but ruining the broker.
To prevent such issues, brokers have installed certain safeguards that make sure that you can only get a bonus if you truly want to use it for trading. In real life trading, this means that you have to invest your bonus a few times before you can withdraw it.
Again, the exact requirements differ from broker to broker, but you can easily have to invest your bonus 40 times before you can withdraw it. For any serious trader, this is not a problem, but it destroys the chance to rob a broker by depositing and immediately withdrawing money.
Additionally, most brokers ask you to maintain a certain trading volume over a time period of 2 to 3 months. Again, this is meant as a security feature to protect the broker from traders that want to steal its bonus, but you have to account for it before you invest money. If you are planning a 4-week vacation over the next months, you should wait until you are back and have the time to fulfill your broker’s criteria to get your bonus, or you will leave a lot of money on the table.
Also, you should not make a withdrawal before fulfilling your bonus requirements. Make sure to only invest money that you will not need over the next months, or you might soon regret your decision.
Binary options offer very lucrative bonuses that can make the start of your trading career a lot easier. Nonetheless, bonuses should not be the only criteria by which you choose your binary options broker.
Brokers have invented safeguards that ensure that bonuses are only paid to traders who actually want to use the bonus to trade. Because of these safeguards you have to make sure that you sign up with a broker that fits your requirements well and allows you to achieve the minimum requirements to get your bonus. With a broker that does not fit your personality, you will miss out on your bonus anyway.