Binary Options Bonuses
Binary options bonuses are offered by online brokers in a bid to convince traders to invest on their platform. These free deals are sometimes offered to customers without the need for account verification or even a deposit. For new investors, in particular, welcome bonuses can boost initial funds, which can help portfolios to grow at a faster rate.
Yet despite the positives, it is important to understand how each type of binary options bonus works, as well as the terms and conditions that dictate how the promotional funds can be used. Read on for a comprehensive overview of the best binary options bonus schemes in 2024.
Best Brokers For Binary Options Bonuses for United States
Binary Options Bonuses Explained
A binary options bonus is essentially a reward or grant offered to a trader by an online broker. The bonus typically provides the customer with extra capital that they can use for trading binaries, or to cover losses. Binary options brokers offer these incentives in different ways, for example, as a $10 no deposit welcome bonus or as a prize for competing in investing competitions.
But importantly, bonuses are normally accompanied by terms and conditions that must be adhered to before a trader can withdraw profits.
Why Brokers Offer Bonuses
Binary options brokers are always seeking to attract more customers. While brokers can achieve this by offering different trading markets or by providing better payouts, one of the most effective ways to gain new customers is by offering sign-up offers.
A welcome or no deposit bonus is designed to convince new investors to join one brokerage over another, while cash rebates, competitions and risk-free trades aim to incentivise further trading on the platform.
Bonus Types
Binary options bonuses come in a variety of forms:
No Deposit Bonus
A no deposit bonus is often seen as one of the most attractive options for new traders. These bonuses are granted to a trader’s account without the need for an initial payment and typically after know-your-customer (KYC) verification has been completed.
While many binary options traders would see this bonus as a great boost to either fund their trading portfolio or to withdraw immediately, it is not always that simple. A no deposit bonus is generally accompanied by a series of strict criteria that must be met within a short period before you can either make a withdrawal or continue trading while using the bonus. We outline typical terms and conditions further below.
Deposit Match
A deposit match bonus is straightforward: the broker will match a certain percentage of your initial deposit amount, up to a maximum value. For instance, a broker could offer a 20% bonus up to a maximum of $200, meaning that if you were to deposit $100 you would receive $20 from the broker.
Today, a deposit match bonus is more common than a no deposit bonus. These deals are usually offered to new customers, so if you already hold an account with a broker, it is unlikely you will qualify.
Reload Bonus
Reload bonuses work in the same way as deposit match bonuses, except that they are offered to traders who are making an additional deposit into their account. Binary options reload bonuses vary depending on the broker and the deposit method used by the investor. For example, binary options brokers may offer a reload bonus on deposits made via e-wallets like Skrill and Neteller.
Cash Rebates
Cash rebates, also known as ‘cash back’, provide a bonus to investors for each binary options contract they purchase using their own capital. Typically, the rebate is relative to the money bet on the contract. For instance, a broker may offer 5% of the contract value as a rebate per purchase, so if you buy ten binary options contracts for $20 each you would receive $10 back from the brokerage.
Loyalty Schemes
A loyalty scheme works in a similar way to a cash rebate bonus. However, instead of receiving a small amount for each contract purchased, the trader will receive a larger bonus for hitting certain milestones. This is designed to incentivise the trader to keep trading at the brokerage. For example, a broker may offer a $30 bonus each time the customer buys thirty binary options contracts for at least $10 per contract.
Demo Competitions
Many binary options brokers run demo trading competitions. These events take place on a free paper trading account using virtual funds. Brokers will typically offer a bonus as a reward for performing well against other traders. Not only are these tournaments a great place to practise your trading strategy in a risk-free environment, but a good performance can also boost your portfolio. Some brokers may allow you to take winnings in cash, while others may provide extra funds that must be traded on their platform.
Risk-Free Trades
A risk-free trade offers the investor a chance to place a trade in the knowledge that, if it loses, they will not lose any money. What’s more, if the trade is successful, the trader can keep any profits. Typically, risk-free trades come with fewer terms and conditions than other bonuses, although this can depend on the number of trades offered. For example, if a broker offers one risk-free trade, the winnings will likely be paid in cash. If they offer a large number of risk-free trades, it is often required that winnings hit a certain trading volume before they can be withdrawn.
Be Strategic With Your Bonuses
Make sure that you take the time to read through the different criteria attached to each bonus. Try to pick one that you feel you could meet the conditions of without drastically changing your trading habits. While researching promotions, make sure to check their turnover requirements and the time frame for completing them.
If you’re interested in trying a specific strategy with your binary options bonus, you could try opening a new trading account with the minimum deposit amount. After trading for a short period, contact your broker and request a bonus for a larger deposit. Typically, this results in better terms for the bonus, as the broker already sees you as a valuable customer.
Regulation Lowdown
Rules regarding binary options bonuses vary greatly. In many jurisdictions, brokers are free to offer traders whatever promotions they please in a bid to bring them in. Recently though, some areas and authorities have sought to crack down on binary options bonuses. One of the most notable is the European Union (EU), which has sought to restrict all bonus schemes related to binary options trading. This means that any brokers regulated by the Cyprus Securities and Exchange Commission (CySEC), the Malta Financial Services Authority (MFSA) or any other EU-based authority, cannot offer bonuses to investors trading binary options.
If you are a trader based in the EU or another restricted area, it is possible to get around these restrictions. Investors are free to trade with brokers regulated in other areas where the restrictions are not in place. Many offshore brokers aim to bring in customers by offering very attractive deals to traders who otherwise would not be able to access them. However, caution is needed when choosing to trade with an offshore broker, especially when their bonuses seem ‘too good to be true’. If a binary options broker is offering a no deposit $100 free bonus, it will probably come with unfeasible conditions, or it could even be a scam. Therefore it’s essential that you always exercise due diligence when choosing your binary options broker.
Withdrawal Terms & Conditions
Always read the terms and conditions of a bonus. First, check whether the bonus is paid in promo funds or withdrawable cash. Bonus funds are typically non-withdrawable and require criteria to be met before profits can be withdrawn. This could be in the form of a minimum trading volume or a turnover requirement. For example, a broker could set a turnover requirement of 20x for a 25% deposit bonus. Therefore, a trader depositing $100 and receiving $25 will have to meet a trading turnover of $2,500 before they can withdraw their $25 bonus.
Withdrawable cash bonuses are not typically given to new account owners. These are usually offered as rewards, for example, as a prize for finishing near the top of a demo trading competition. Generally considered the best bonuses to receive, these cash bonuses do not require any criteria to be met before they can be withdrawn. As soon as a trader has earned one of these deals, they are free to remove them from their account.
It is also important to check whether your deposit and the bonus are locked together or treated separately. If they are locked together, you may not be able to withdraw your initial deposit before you meet the conditions of the deal. Also, make sure that you understand how any winnings from bonus funds are paid. Some brokers choose to distribute profits as risk-free trade bonuses rather than cash.
Finally, check the time frame of the bonus and its conditions. In some cases, this is simply a minimum amount of time that must pass before the deposit can be withdrawn, such as thirty days. In others, the bonus conditions may have to be met within a shorter period like fourteen days.
Instant Bonus Vs Release Bonus
Most bonus types fall into two categories, instant bonuses and release bonuses. Instant deals are credited to a trader’s account as soon as they sign up on the platform. The conditions of the bonus must be met before a trader can withdraw any profits. If the trader requests a withdrawal without meeting the criteria, the profits and bonus will be cancelled. These are best used by experienced traders who will ensure that they meet any relevant criteria.
A release bonus is granted to an account only after the trading volumes specified in the terms and conditions have been met. After fulfilling the criteria the bonus is ‘released’ to the trader’s account, and the investor can request to withdraw these profits at any time. It’s worth reading the terms of each bonus however, as making a premature withdrawal could cancel any further release bonuses the trader is due to receive. These offers suit beginners as they offer more flexibility and simplicity than the instant bonus system when it comes to withdrawing funds.
Advantages of Binary Options Bonuses
The main benefits of binary options bonuses include:
- Better chance to make bigger profits
- Boosting your capital when you start trading
- Demo competitions allow you to win withdrawable cash
- Trade with less risk
Disadvantages of Binary Options Bonuses
However, it’s important to remember the drawbacks of binary options bonuses:
- Bonuses typically come with minimum trading requirements
- Makes it more difficult to withdraw funds
- Bonuses may come with time limits
Comparing Binary Options Brokers With Bonuses
Here are some things to consider if you are looking at binary options brokers with bonuses:
- Bonus Type: You should compare the bonuses that each broker is offering. Explore the types of deals offered, as well as the size and amount of each one. Ensure that you understand the requirements that need to be met before the bonus funds can be withdrawn.
- Regulation: When you are researching any binary options broker, you should ensure that they are regulated. Ideally, this should be by a top-tier authority like the Australian Securities and Investments Commission (ASIC).
- Markets: Compare the various markets offered by each binary options broker and ensure they offer assets that you wish to trade. For instance, if you know that you want to trade forex binary options, choose a broker like VideForex.
- Payouts: Ideally, you should trade at a broker with the highest average payouts as this is a good indicator of profitability. Remember, binary options brokers usually list their maximum payouts on their website, so you may have to dig through reviews to find an average.
- Fees: Compare the various fees charged by each binary options broker. Choose a broker with a clear fee structure and no hidden charges.
- Support: Try to find a binary options broker that offers high-quality support. Binary options can be traded on weekends, so ideally your broker should offer 24/7 support in case you run into any issues.
Bottom Line on Binary Options Bonuses
Binary options bonuses are a useful tool for both brokers and traders alike. Investors receive the benefit of a boost to their funds and trading capital, while brokerages can use deposits to entice new customers to sign up. Bonuses come in a variety of forms, and they often require a strict set of restrictions to be met before they can be withdrawn. If you are trying to choose between different binary options brokers offering bonuses, make sure that you read the terms and conditions thoroughly.
FAQ
What Is A Deposit Match Binary Options Bonus?
A deposit match is one of the most straightforward binary options bonuses available. Brokers will match a percentage of a trader’s first-time deposit up to a specified value.
Can I Withdraw Binary Options Bonuses?
Some binary options bonuses have criteria that need to be met before the bonus or any profits can be withdrawn. This could be a minimum trading turnover or a set period that must pass.
Do I Need To Deposit To Get A Binary Options Bonus?
Many binary options brokers will offer bonuses without the need for a deposit. These are known as no deposit bonuses and can be received following sign up or verification.
Can I Earn Binary Options Bonuses Through Competitions?
Yes – you can earn binary options bonuses through competitions. Some online brokers run demo competitions in which traders compete to earn the most virtual funds. Typically, the winners will receive some form of bonus as a prize.
Are Binary Options Bonuses Allowed In The EU?
The EU and its regulators have cracked down on binary options bonuses within the jurisdiction. If you trade within the EU, you may have to utilize an offshore broker if you wish to receive a bonus.