So, have you heard about binary options trading bonuses? These are the additional funds that a broker will deposit in your account when you make a deposit. Not all brokers offer binary options trading bonuses, and those that do have varying bonus amounts, from 50% all the way up to 150% in some cases. Is this really free money or is there some catch that will get you in the long run. Below you can find out more about these popular trading bonuses.
As I mentioned above, not all the brokers offer binary options trading bonuses. Basically, these bonuses are an incentive for you to trade with one broker versus another broker. They are typically tiered, which means that the more you deposit, the larger your bonus. You might find that for a $100 or even a $1,000 deposit you only receive a 50% bonus. But, if you can deposit $10,000 or more your bonus soars to 150%! This is some pretty serious money, so how can the brokers offer such large deposit bonuses?
Obviously the deposit bonus money comes out of the brokers profits, but that is only if you keep it and make additional profits. You see, what the brokers often fail to tell you (except for in the small print in their terms and conditions) is that you can only withdraw the bonus money and any profits after you have traded your deposit so many times over. This amount varies from broker to broker, but it typically falls between 20 times and 100 times. This means that with the theoretical $10,000 deposit, at some brokers you would need to trade over $1 million before you were able to withdraw the deposit bonus. Even at the low end you would be trading over $200,000 to claim your bonus money.
The brokers have had problems in the past with traders who complained loudly when they were unable to withdraw the bonus money, even after they were pointed to the terms and conditions that clearly stated how much trading volume was necessary before trading bonuses could be withdrawn. So, some of the brokers have gotten around this by only paying the deposit bonus after you have met the minimum trade volume criteria. This means that you aren’t even able to risk the trading bonus to get to the volume requirement, instead you are trading your own money. And if you blow out your account before reaching the volume minimum you never see a single cent of the deposit bonus.
So, tread carefully when it comes to binary options trading bonuses. If you already have a strategy you know is profitable you can take advantage of the bonus. However, if you are just getting started with binary option trading it is far more likely that you will run out of money before you meet the volume requirements to get your bonus. At the end of the day, always read the terms and conditions of the broker before accepting any binary options trading bonuses.