Nearly all binary options brokers now offer some type of deposit bonus. Typically, these bonuses are offered in the form of a percentage of the total deposit amount. Larger upfront deposits bring larger bonus amounts, and this must be considered when opening and funding a trading account. Since there is no guarantee that any bonus will be offered after this initial offering, it’s important to make the most suitable decision the first time around.
Deposit bonuses do equate to free money, but don’t expect them to come without any conditions. There is no broker in existence that is going to just hand out money, as they would not remain in business very long if that were to happen. What this means is that there will be some work required on your part if you are to ever be able to claim these extra funds. This “work” is going to require that you trade often and trade well.
There are two common types of requirements associated with the withdrawal of bonus funds. One is a trade volume requirement, or set number of trades which must be executed prior to being able to withdraw the money. The other is a turnover requirement, or set amount of money which must have been invested into actual trades before the funds are released. This requirement is usually directly linked to the bonus amount, meaning that the amount will need to be rolled over a set number of times.
To learn what terms and conditions are in place, ask your binary options broker. Quite often this information can be found somewhere on the company’s website, but if not, contact a customer representative and request the details. Should there be any hesitancy on the part of the broker about releasing this information, consider this to be a red flag. Transparency is the hallmark of a great brokerage, so when it is not in place, exercise extreme caution.
There is no denying the fact that there are some distinct advantages associated with these additional funds. Since this money is added to your trading account right away, it will provide some cushion in regard to any losses that might occur during the learning phase. The funds can also allow for larger investments when market conditions are optimal. Price movement predictions are not always easy to arrive at, but there will be times when the upcoming movement can be determined with a higher degree of accuracy than usual.
The acceptance of a bonus is completely optional, which means that the final decision is up to you. By learning what the conditions are in advance, an educated decision can be made. For those who plan to trade over the long term, bonuses make sense. However, for those who see if binary options trading is right for them without locking their money into the platform, a straight deposit with no bonus could be the better route.