It is quite common for binary options brokers to provide numerous kinds of incentives and bonuses to their customers. With the increase in competition, the brokers are enticing more and more traders towards them. The bonuses also uplift the trading spirit whether the traders are novice or veteran.
Various types of bonuses
The bonuses are offered in different forms like cashback, promotions, and deals. They are offered in different cases and forms. Following are some of the most common types of bonuses are –
- Mobile Bonus
- No Deposit Bonus
- Redeemable Bonus
- Risk-Free Trades
- Referral Code Bonus
- Welcome Bonus
These bonuses can be claimed after completing certain prerequisites and are available to newcomers and or veteran traders.
Understanding different forms of bonuses
The mobile bonuses are given to the mobile clients when they sign up in the broker’s mobile app. The use of websites is becoming less popular with the increase in mobile app development. Many brokers can now be accessed on smartphones.
After signing in from the mobile app, you can get some rewards. It varies according to your chosen broker, but the mobile bonuses are quite similar to the welcome bonus.
No deposit bonus
This bonus goes as per its name. The no deposit bonus is credited into your trading account before depositing any real fund. The bonus amount can be used to commence trades. They carry no risk as for any unsuccessful trade; there will be no real monetary loss.
The no deposit bonuses always come with certain terms and constraints which are to be checked before accepting and applying.
The bonuses which are given by the brokers to their regular traders in the form of gratitude rewards for being consistent and loyal are called a redeemable bonus or reload bonus. The condition to claim them includes the addition of funds and execution of trades on a regular basis.
These are offered by many brokers and are widely given as a percentage of the deposited amount. For instance, if you add $1000 to your trading account and receive a bonus of 20%, you will get an additional $200 as a reloaded bonus.
The risk-free trades enable the traders to execute a certain number of trades without jeopardizing their money. This bonus is effective and is preferred by many traders. This allows them to execute the trades where they are immune from any loss.
The profits are credited into their account, but for the losses, no amount is deducted. This makes it one of the most accepted rewards. The number of risk-free trades varies in different brokers.
Referral code bonus
By referring the code to a friend or other person can result in additional awards for you and your friend as well. The referral codes are unique, and when another person uses them while registering, you both will get an extra amount.
Another type of referral bonus is where a link is referred, and using that link; another person makes a deposit in his trading account, you will get a percentage bonus based on the amount deposited by your friend.
The welcome bonus is one of the most frequently used bonuses by brokers. Through this, additional funds are credited into your account when you make your first deposit. It is also known as a ‘deposit match bonus.
The percentage amount of the value deposited is offered as a reward. For example – Making the first deposit of $1000 for which the bonus is 50% will attribute a reward of $500.
Understanding welcome bonus
The welcome bonuses are computed according to the amount you deposited in your trading account. The deposit made must be at least the minimum amount required in order to start trading. The minimum deposit differs in all the trading platforms.
The welcome or first deposit bonus is based on the amount you add. Higher the deposit value, the chances of getting more percentage amount increases. They are further used in making more trades.
The following requirements are to be fulfilled in order to claim the welcome bonus:
- Register yourself on a binary options trading platform.
- Verify your identity and submit the asked documents.
- Check for the bonus and accept it.
Not every broker provides this, so take into consideration that your selected broker is offering a welcome bonus.
Advantages of welcome bonuses
- More investments to trade
The bonuses give additional funds into your accounts which you can use to trade. This way, you get more capital to trade.
- Real-Time Profits
The profits you get will be real. This is an ideal situation where you invest the bonus but get the real profit credited into your account.
- Encourages the Traders
When the traders get extra funds along with the deposited money, they get motivated and use the trading terminal more.
How deposit match bonus helps you?
The brokers give you extra funds, which are helpful in making more trades. Let us take an example and understand its benefit in a much better way.
In a basic scenario, you deposit $200 in your trading account and spend $2 on every trade. This way, you can perform 100 trades using a $200 bill. However, if you get a 100% bonus on depositing $200, the total amount will be doubled. By using $2 per trade now, you can execute 200 trades instead of 100.
This way, you are doubling the trade ratio and your chances of winning profits.
Terms and conditions
No bonus comes as a freebie but rather accompanies numerous terms and conditions. Though these conditions can vary from type of bonus to the brokerage platform you are using, some of the common terms and conditions are:
- Locked in Deposit
This condition means that when you get the bonus amount, it will get “locked” along with the amount you deposited. This condition can be overcome by completing the required turnover rate.
- Constraint On Withdrawal
In this T&C, the bonus amount cannot be transferred from a trading account to your bank account. Almost every bonus comes with this constraint. In order to extract the bonus, you have to meet a certain requirement, for example, fulfilling the turnover rate.
- Payment of Bonus
The bonuses can be paid in two ways, either they will be disjointed from the deposited amount or united. Ensure that they are separated, as this helps in keeping a better track of your funds.
Other than these, there are many other conditions attached with every bonus. Make sure to check them and read the fine print thoroughly before accepting and using the bonus.
Finding the right broker
Bonuses are like a custom in binary options. Not only do they attract new traders, but they also raise the interest of the existing traders. It is important to get the right broker for your trading purposes because this industry is filled with scammers.
To prevent yourself from getting scammed, check the following aspects in your broker:
Though there are many brokers who are unregulated but are traders’ favorite, it is always better to use a broker that is well regulated and authorized.
The experience of the company says a lot. More experience means that they are well aware of customers’ needs.
Traders who have used the platform are the best critic. They can review and compare their experience, which can be helpful for you as well.
- Trading Tools
This feature can be checked by using the demo account of the brokers if they have any. More and advanced trading tools help in executing the trades with better precision.
- Deposits and Withdrawals
One of the most important traits to be checked in the broker is the methods provided by them for adding and extracting funds. Availability of more and local methods ensures security to a limit.
- Rewards and Deals
The promotions and various bonuses are like a cherry on the cake. They provide you with more funds or with risk-free trades. However, any broker who is offering awards with many terms and conditions is to be avoided. More T&Cs mean that in some way, they will make you sustain losses.
Best welcome bonus brokers in Binary Options
There are few brokers who are preferred by most traders. Following are the top brokers who provide a welcome bonus with few or no T&Cs.
#1 Olymp Trade
One of the most trusted brokerage firms in the financial industry is Olymp Trade. The platform offers you a welcome bonus on crediting the trading account for the first time.
You will receive a 100% bonus for depositing any amount between the minimum amount that is $10 to $200. The restriction with the welcome bonus is that after activating it, the reward will expire after 60 minutes, which means thereby that you have to use the bonus within 1 hour of applying to it.
Binomo is a well-known trading website that is active since 2014. It offers different deals and rewards like deposit bonuses, Binomo bonus coupons, etc., which are quite popular among traders.
For the welcome bonus, users will receive 25% extra after registering for the first time. Further, on funding the account, you will get the cashback based on the deposited amount.
The trading platform comes with three different account types, and you can avail of the bonus as per your account type.
- Standard Account: up to 100%
- VIP Account: up to 150%
- Gold Account: up to 200%
BinaryCent is relatively new in binary options trading but is already used and recommended by many traders. It offers a payout of up to 95%, not only this, but it is also known for providing different and regular deals to its traders. On making the first deposit, you can get bonuses that depend on the funding value.
There are three levels as per the account types-
- Bronze Account – minimum deposit of $250 or more will give a 20% bonus.
- Silver Account – 50% bonus for adding $500 or more.
- Gold Account – the highest bonus percentage is given. You can get a 100% of bonus by depositing $3,000 or more.
The bonuses are a major part of binary options. It is the core reason why traders are attracted more towards binary trading. The traders recognize and appreciate the brokers who give genuine and authentic promotions and deals. The growth rate of customers rises when the brokers care for them and give them exciting offers.
Avoid scammers and unregulated brokers. Check the policy and conditions of the brokerage firm and suspend those that offer extremely high returns without any backup since they can create many problems in the long run. A good reputation of brokers helps in increasing the bonus offers as well as the client base.