Understanding How Binary Option Bonuses Work
Trader bonuses are a well-known feature of the binary option world, and newer traders in binary options can benefit from them. Binary options brokers recognize the importance of recruiting new traders to their platforms, and use bonuses as an incentive to sign up with them. Brokers recognize that once a new trader has opened an account with a broker and begun trading, client loyalty, or sheer habit, will often tie the trader to the broker thereafter.
Welcome To The Welcome Bonus
The result is a wealth of opportunities for you as a new trader. The best-known of these bonuses is the welcome bonus, offered to traders who coming to the broker for the first time to open an account. The bonuses are provided after you open an account with an initial deposit. The deposit can be as low as $250 but will be more for accounts that offer additional services or higher trading limits.
Bigger Bonuses for Bigger Deposits
These welcome bonuses are often keyed to the amount of the deposit. If a trader opens an account with a $300 deposit, a 100% bonus would provide that trader with an additional $300 to trade on his or her account.
These bonuses are of course structured to persuade traders to make larger deposits. As a trader, in deciding on your deposit amount, you will need to settle on the proper amount you wish to dedicate to binary options trading. At the same time, the fact that your deposit is being matched by the broker, either dollar-for-dollar or at some other percentage, will naturally be relevant to the decision about how much to deposit.
Conditions On Cash-Out
Obviously, you can’t simply open an account, obtain the bonus, and then cash out. That would not exactly be a successful business strategy for the broker. Brokers instead require traders to conduct trades valuing a certain multiple of the bonus amount before any of the bonus cash may be withdrawn.
Provided that the account holder’s trading strategy is sound, and results in a profitable trading history, this should not matter. Once the required number of trades has been executed, the trader will be able to withdraw the bonus money. So for successful traders, bonuses do represent “found money,” and may be regarded as such.
A Valuable Incentive To Traders
As a result, a bonus should not be looked at as quick cash, but instead as an incentive of real value that new traders may wish to take advantage of once that have decided they wish to pursue binary options trading.
For smaller-scale traders, a few brokers do offer no-deposit bonuses, but these are rare, and are usually for a very modest amount. Beyond this, brokers offer regular customers bonuses for making additional deposits to their accounts. These bonuses, intended to maintain or reward trader loyalty, are usually for smaller amounts than the welcome bonuses. On the plus side, brokers may offer such bonuses on a repeating basis.
Binary options bonuses are now a mainstay of the binary options world, and represent a good method for securing additional trading capital both for newer traders and for old hands alike.