Binary Options Bonus Reviews

Sizeable binary options bonus offers are extremely common in the industry. All the top brokers offer at least some form of incentive to encourage prospective new clients to open accounts and give day trading a try. Here we will look at some of the types of incentives offered and compare them across the various leaders in the field.

 

Read the Fine Print on Incentive Offers

The most important thing you can do when considering a bonus offer from a binary options broker is to read the fine print. Offers come with restrictions. Don't expect to open an account, get some bonus cash, and immediately withdraw it. Bonuses are incentives to try day trading - not simply free money for you to take at will.

Typical Bonus Offers

...and Restrictions

Every single cash or prize offer in the financial markets comes with some sort of restriction. The reason brokers make these offers is to encourage new clients to try the product - a.k.a. open an account, make a deposit, and make a few trades - take a few risks. Here is what you can typically expect to see in an offer and what you will likely find in the fine print.

• Straight Bonus Cash with Trading Volume Minimum Based on Bonus Amount - This type of cash award is typically granted at the time of account opening and initial deposit. The award may vary from 20-50% of the deposit amount but usually comes with a restriction that the trading volume by the new customer must exceed 15-30 times (depending on the broker) the amount of the award. (see an example of a binary options broker offering this kind of award).
• Straight Bonus Cash with Trading Volume Minimum Based on Deposit + Bonus - A second kind of cash award based on deposits made by new clients comes with a different set of restrictions. In this case a new trader would be expected to make enough transactions to exceed anywhere from 5-15 times the combined total of the initial deposit plus the bonus award amount. The size of the cash stake similarly would range from 20-50% typically - usually depending on the size of the initial deposit with some sort of maximum cap. Click here for an example of a company with this kind of bonus.
• Progressive Cash Bonus Earned with Trading Volume - Along similar lines to the previously mentioned cash awards, a progressive earned bonus offers additional account funds with a twist: the client earns the award after accumulating a certain amount of trading volume. The benefit from this kind of incentive is that the funds are free and clear once earned (a.k.a. available for withdrawal by the investor). Once the award is earned no further restrictions are put on the money. This type of bonus (20-40%) is far less common in the marketplace but is much easier for new clients to understand - as the restrictions put on other types of bonuses frequently confuse beginners. See a broker review page where this type of offer is made.
• Periodic Preferred Customer Trading Cash Incentive - This type of award is typically reserved for VIP customers and / or high-volume traders. Offers vary. Restrictions vary. This type of award is offered to high rollers and is not usually going to be seen or made to beginners or amateurs. See a reputable broker where this bonus cash policy is used.
• Electronics Gifts with Trading Volume Restriction - A last (and previously more common amongst other industries outside financials) new client deposit incentive is in the form of consumer electronics. A firm will offer the latest gadget / widget / electronic consumer goodie in exchange for a new customer signup and depsosit. Like the similar cash awards, as trading volume restriction will apply - usually something on the order of 20 times the value of the deposit required to qualify for the award. While this volume hurdle is lower than the others - usually the gadget or gizmo is not likely as valuable as a cash bonus otherwise offered might be. See a binary broker where this offer is available.

Binary Options Broker Bonuses Vary

Be Aware of Changing Restrictions and New Offers

As interest in binary options trading increases and decreases over time incentives to promote new business will vary. It pays to shop around and pay attention to the latest offers in the market because from time to time very special awards come along. One firm may offer precious metals - like a paid in gold bonus. You can be sure that whatever is hot in the marketplace is sure to be available at some point as part of a promotional incentive to start trading. On the other hand it also pays to read the fine print and make sure you understand the restrictions that go with these special limited-time offers.

How to Avoid Being Scammed by Binary Options Brokers

Here's a short video we ran across that makes some good points as to how to avoid being / feeling scammed when opening your trading account.

Do Binary Options Trading Sites Give Free Money?

One would think the question, "Do binary options trading sites give away free money" would be an obvious "No!" but there still seem to be people out there that think that is the case. While many (read: most) brokers DO offer some form of trading incentive (usually in the form of trade credit money) - it does not constitute free money given away. Despite the claims and appearances of some sites - those cash incentives have to be earned.

How Are Cash Incentives Earned at Binary Options Brokers?

The right question people should ask when trying to choose between similar cash incentive offers at one of the leading binary options brokers is, "What do I have to do to be able to withdraw the bonus cash?" Therein lies the devil in the details, so to speak. While a new trader might be promised a 50% bonus over and above their initial deposit amount they should be prepared for the fact that the deposited funds and bonus cash will not be free for immediate withdrawal.

This has obviously caused more than a few traders to panic. Fear not however for most brokers make it pretty simple to free up the cash: trading volume. All a new trader has to do is execute enough volume of trades to have full withdrawal rights to the bonus cash. Sometimes the hurdles can be a little on the steep side but by and large the trading volumes are not onerus. A site might expect a trader to generate anywhere from 15-30 times the amount of the bonus reward in contract volume - which for most traders happens within the first couple of weeks of placing trades in their account.

How to Get the Most Free Money from Binary Options Trading Sites

Top Cash Incentive Offers:

1. OptionBit
2. TradeRush
3. EZTrader

We started the post at the outset with the caveat that cash incentives at binary trading sites does NOT constitute free money - so we're drilling that point home here. There is NO FREE MONEY at binary brokers OK?

Now having said that, most cash incentive offers are tied to the level of deposits made by the new client. The higher the initial deposit, the higher the cash incentive percentage. A typical offer might involve something like $100 bonus for a $500 deposit with a $300 bonus for $1000 up to something like a $4000 bonus on $10000 deposited. The bigger the trader's initial funding commitment, the bigger the cash incentive. Does that make sense? Other binary bonus schemes exist but this is the most typical setup.

Bonus Cash at Binary Trading Sites Is NOT Free Money!

We have to remind people that, once again, bonus cash given by binary options trading sites is not free money. The bonus amounts above represent cash that new clients can withdraw once they have reached trading volumes in their account above a set threshold as set by the customer terms of service at their broker. A trader who received a $100 bonus can expect to have to generate volume on the order of $1500 in trades (placing essentially 3 trades using their $500 stake) in order to free up the $100 bonus for withdrawal.

Seriously think about it though: If binary options trading sites were giving out free money that could be immediately withdrawn... exactly how many of those sites would still be in business today? The reality is that all cash gifts in the financial world come with strings attached... so set your expectations low and hopefully things will work out for the best OK?