Binary options bonuses are extra promotional offers added into your trading account by the brokerage firm. They can be in the form of awards, extra funds, or cashback.
Bonuses play an important role in attracting traders. They can be offered to the new traders in order to entice them towards their trading platform or to the existing customers to make them use the account more often.
Types of trading bonus
The bonuses ensure that the trader won’t back down even after the losses. The additional offers reimburse and alleviate the losses of the trader. They are mostly given on signing up into the account or as a welcome bonus. The common types of trading bonuses are –
- Welcome Bonus
- Extra Material for Training purpose
- Risk-Free Trades
- Reload Bonus
- Refer a Friend Bonus
- No Deposit Bonus
Note- Before claiming the bonuses, make sure to check all the terms and conditions attached.
#1 Welcome bonus
There are many brokers who offer a welcome bonus to their traders. Also known as the deposit match bonus, it is given, as the name suggests, on the first deposit made by the user. The welcome bonus can range from 50% to 100% and, in some cases, 200% of your deposited amount.
For example, if you add $500 for the first time, and the deposit bonus offered by the broker is 50%, then you will get an additional $250 in your trading account. Similarly, if the bonus is 100%, you will get an extra $500.
#2 Extra material for training purposes
Many brokers provide extra educational material for their customers as a reward that can be used for learning and honing their trading skills. For beginners, this reward can be a huge advantage.
#3 Risk-free trades
This type of bonus makes you immune from incurring any losses for a certain number of trades. Here, a successful trade will give you profit, whereas, after performing a trade that results in a negative, no amount will be debited from your account.
The number of risk-free trades can vary with the brokerage platform in use. It could be between 1 to 5 and in some cases more than 5.
#4 Reload bonus
It is similar to the welcome bonus; the only difference is that the welcome bonus is given on the first deposit, whereas the reload or redeemable bonus is given for other consecutive and repeated deposits.
This is given mostly to the regular and loyal customers as an appreciation reward. It is also given as a percentage value and is subjected to the amount added.
For example, a 50% reload bonus on depositing $200 will be $100.
#5 Refer a friend bonus
The widely used bonus is the refer a friend. It attracts more customers since it is easy to avail. This bonus can work in different ways –
You can win some cashback by simply referring the code to another person. When your friend opens the trading account and enters the referral code, he can also win some awards.
After referring to him, the bonus will depend on the opening amount deposited by your friend.
#6 No deposit bonus
The no deposit bonus is an effective way to attract more customers. It is the opposite of reloaded and welcome bonuses. In this scenario, brokers will offer you some rewards only for opening a trading account.
Elaborating the no deposit bonus
This alternate method of welcome bonus is good to go trading option. You will get your trading account stocked even without depositing a single penny, and you can use that amount to commence your trading. After registering yourself as a trader, you can get this award.
There are basically three prerequisites:
- Finding a broker who gives the no deposit bonus and registering a real account.
- Verify yourself and your account by delivering documents and information.
- Fulfilling the terms and conditions mentioned to claim the reward.
- Is it effective?
In binary options trading, there is no such concept of free currency. The no deposit bonus always accompanies some terms and conditions which put restrictions on how to use the bonus.
The general and common conditions include –
- The expiration time of using the bonus.
- The trading volume where you are required to make high trades.
- Prohibition on withdrawing the bonus into your bank account.
And many more. The no deposit bonus can be availed only after fulfilling all the conditions mentioned by your broker.
- Similarities with the Demo Account
Many traders believe that no deposit bonus turns your live account into a demo account for that particular period. The conditions in both cases are almost the same as you can perform the trades without paying from your own pocket. The money cannot be withdrawn, and the trades are risk-free as you are not facing any financial loss.
The difference comes when the trades are executed. In a demo account, you can’t get the profit after a successful trade because they are not real contracts, whereas performing a profitable trade using the bonus can reap you the benefits since the trades here are real.
What are the advantages of a no deposit bonus?
These bonuses are quite popular among the traders, and some of the reasons are:
Without the involvement of any real money, the financial risk is nil. You get to trade on a live account without any risk of losing real monetary funds. If you are a novice, this is a big benefit as you can experience the real trading realm without jeopardizing your real money.
#2 Acquaint yourself with the platform
Although many brokers do offer demo accounts where you can check the trading terminal risk-free, the feeling of encountering a real trading scene is somehow different. And what could be the best way to familiarize yourself with real trading when you have nothing to lose but so much to gain?
#3 Chance to win real profits
No deposit bonus is not only about using them to get accustomed to the trading platform, but you can earn actual profits as well.
Claim returns using no deposit bonus
Getting a bonus can be both good and bad for you, depending on the broker and the way you use them. It is best to have a regulated firm that offers less or no conditions on the use of the bonus.
When used appropriately, checking all the turnover requirements, and reading the fine print, you can claim profits. It is possible to reap gains for newcomers as well. The key is to first consider all the musts and constraints given by the broker and then act upon them.
Terms and conditions in no deposit bonus
The no deposit bonus comes with hefty terms, conditions, and restrictions. If not used properly, this reward can turn into loss pretty quickly. Attentively check all the mentioned conditions before using the bonus.
#1 Restriction on withdrawal
The most common restriction is not able to withdraw the extra funds until unless you fulfill certain obligations. The broker can ask you to trade the bonus a certain number of times or to make more deposits into your account before the withdrawal.
For example – if the bonus given was $200 and the broker asks you to execute 15 trades, then, in total, you have to perform real-time trades worth $3,000 before becoming eligible to claim the withdrawal amount.
#2 Payment of bonus
Check if the bonus and your funds are separated or not. It is best to have them unconnected because, in that way, you can keep track of your deposits and the bonuses given by the broker.
#3 Claiming the profit
The successful trades made using the bonus will give you profits but whether those profits can be claimed into your bank account has to be checked. Most brokers give the profits in the form of extra bonuses, and they can be extracted only after completing some condition.
Some brokers offer them in the form of normal profit, which can be withdrawn in the form of cash.
#4 Locked in deposit
This condition cannot be neglected. Any locked-in deposit means that not only your bonus but your first deposit will be “locked-in” and cannot be withdrawn until you meet the turnover requirements.
The turnover means the number of trades that are to be executed before claiming any withdrawal amount.
For example – if the condition states that a minimum of 10 trades is to be executed, you have to make at least ten trades. Before that, you cannot withdraw your deposited funds, let alone the bonus.
Best brokers for no deposit bonus
The top 3 binary options brokers who provide no deposit bonuses are –
Binomo is a regulated trading platform that was introduced in 2014. It is one of the most reliable brokers in the market and is known for its interesting promotions and deals.
Binomo offers no deposit bonus in standard, VIP, and Gold accounts and can be used after three days of receiving it. The trading platform demands fulfillment of the required turnover for the withdrawal process.
#2 Pocket Option
It is an independent binary broker and offers various bonuses, including the no deposit bonus for its traders. The bonus is available for all the new clients who are signing up with Pocket Option for the first time.
This broker also follows the same condition for withdrawing the bonus, that is, completing the specified number of turnovers.
Ayrex binary broker givers $30 as no deposit bonus to all its new traders. The bonus is available to the traders who never credited their trading account. To claim the bonus, register yourself as a verified user on the Ayrex trading platform, and before depositing any amount, accept the offer.
Current scenario with no deposit bonus
The no deposit bonus puts the trader, as well as the broker, on a cliff, and hence, many brokers are seen shifting towards other bonuses like the risk-free trades bonuses or the referral code awards. Through this, traders can use real money to place trades with fewer risks involved.
However, in many trading platforms, no deposit bonus is still active, and many traders prefer them over other bonuses.
The competition is tough, and every broker wants to achieve the top position. And to get that, they need to attract more clients. Therefore, the scheme of bonuses came into existence.
The bonuses are used to lure new traders with exciting promotions and deals. While some can be genuine and productive in trading, some are a total scam. It is best to avoid those brokers that are not regulated by legit authorities. In case you are using an unauthorized brokerage company, if it does not seem right, you can avoid the bonuses or decline them.
Remember, your money is in your hands, and using them in an effective way is the key to earning more profits. Getting attracted to bonuses that are swindled will put monetary loss and disadvantages only.