Certain binary options websites have taken a page from the playbooks of online bookmakers and now offer welcome bonuses to new customers. The premise behind the binary options bonuses is simple. You sign up for an account, fund your account and receive additional cash as a “thank you.”
Binary bonuses present a win-win outcome for everyone involved. Your binary options site acquires a new customer and you get extra cash in your account that you can use to execute trades and win money. The best binary options bonuses can be worth quite a bit if you know where to look and understand all terms and conditions.
How Binary Options Bonuses Work
Binary options bonuses come in all different forms, but most are simple match-rate bonuses. What this means is the amount of bonus money you receive is determined as a percentage of your first deposit. For example, if you were to claim a 50% bonus by depositing £500, you would receive an additional £250 in bonus funds. Thus, your total trading balance would be £750 after the bonus is applied.
If you’re feeling skeptical right now, that is perfectly understandable. We don’t often see businesses willing to give away so much money just to get new customers. No normal business would hand out large sums of money without expecting something in return, right? That is exactly correct.
Online brokers do expect something in return – they want your business. And to ensure they get your business, brokers require you to meet one important condition before any bonus money is released for withdrawal. You must place a minimum value worth of trades before any bonus funds may be withdrawn.
Trading requirements ask that you execute trades worth a minimum total amount in order to fully claim your bonus. An example would be your binary options site requiring you to place a total sum of trades equal to 10 times the bonus amount. In this example, a 10x trading minimum applied to a £250 bonus would require you to place a total sum of binary bets equal to £2500. Once you’ve executed that enough trades to meet that mark, you’re free to withdraw the bonus cash and any other earnings.
Brokers apply minimum trading requirements to bonus offers as a means to protect themselves from losing money to people who have no intention on actually trading. Without a minimum trading requirement, it would be all too easy to quickly sign up for an account to get a bonus and then immediately withdraw everything for a quick profit. That business model would be utterly unsustainable.
With that said, it is still wise to read the terms and conditions before accepting any bonus offer. The main things to look for are excessive trading requirements and poorly-worded conditions that seem designed to make it difficult to ever withdraw your extra cash. Reputable brokers keep their bonus terms fairly straightforward.
Most Common Types of Offers
Everything we’ve discussed so far relates to cash bonuses because these are extremely common. The competitive nature of this business has led most binary options sites to offer increasingly lucrative deposit bonuses in an effort to attract new customers. Plus, deposit bonuses are easy to understand and market. You sign up for an account, make a deposit and receive a bonus.
One thing that makes binary options bonuses different than the promos found at online bookmakers is that the exact bonus amount may not always be published up front. Some (not all) binary sites determine bonus amounts on a case-by-case basis. Generally, bigger deposits result in bigger bonuses.
Risk Free Trades
Risk free trades give you either a limited number of trades or a specific period of time during which all trades are “risk free.” Whenever this type of promotion is active, all winning bets are paid out as usual. Losing bets result in a bonus equal in size to the original stake.
Bonus money earned in this manner may not be withdrawn, but it may be used to place bets and win money that you can withdraw.
Money Back Guarantees
Money back guarantees are like risk free trades but better. While a risk free trade returns losing bets in the form of a bonus, money back guarantees return straight up cash to cash to your account. The difference here is that the money you get back may be withdrawn immediately if you wish.
Some binary options sites offer electronic gifts in lieu of cash bonuses for anyone interested in something other than money. We have seen offers in the past that awarded iPads and MacBooks to new customers whose deposits exceed certain thresholds. These gifts can be quite valuable and therefore require large deposits and quite a bit of trading turnover before the gift is awarded.
For example, one site we researched a while back offered two “technology bonuses” for new customers who made large deposits. The deal was that if you deposited €10,000 or more, they would give you a latest-generation iPad. They were also willing to give you a MacBook if you deposited €20,000 or more. The catch was that the iPad offer required you to reach at least €50,000 in total trading volume while the MacBook offer required a total of €100,000 in trading volume.
As you can see, these offers were intended for serious traders. If you’re just getting started and only plan to dabble a bit, it would be best to claim a smaller bonus that does not come with such large deposits and extensive trading volume requirements. However, these types of bonuses are great perks for anyone serious about betting large sums on binary options.
As the name suggests, no-deposit bonuses are awarded without requiring you to first make a deposit. All you have to do is sign up for an account and the money is yours. No-deposit bonuses are almost always worth very small amounts due to the ease with which they can be claimed.
You will likely also be required to make a deposit at some point in order to withdraw anything won by wagering the no-deposit bonus money. Otherwise, it would be a simple matter for people to claim no-deposit bonuses and then leave without ever placing an actual trade.