Binary Options Bonus

Binary Options Bonus- Don’t Get Too Excited!!

I think that over 95% of all binary options broker offer bonuses and special promotions in order to attract more and more clients. However, I’ve stumbled across too many people who had the wrong impression about the bonus given by most binary options brokers and hence lost money or just had the wrong impression about binary options in general, and brokers specifically. One might think that the higher the bonus is the better chances he has to generate high profits. Well, it’s not completely correct.

Bonus and other promotions are a great boost for getting you started. For example, one could invest 200$ in order to receive up to 100$ bonus for his/her account (now we’re talking about a 50% bonus, I’d say the average bonus is about 25-30%). Most brokers will deposit the bonus money into your account immediately after you deposit your initial investment amount. That’s a great boost for your account, but don’t get carried away since it’s not as simple as it looks.

In case that’s the first binary options that suck article you’ve ever read and the first Binary Options Scam article you’ve seen, you probably haven’t seen the section discussing the restrictions and their implications on potential and existing traders. After reading about the binary options bonus issues go back and read that important article since Binary options brokers also imply some restrictions on the bonus given. One important restriction is concerned with the withdrawal of profits.

Binary Options Bonus- How Does it Actually Work

Let’s say I’ve decided to open an account with XYZ Broker. My initial investment is 250$, there’s a bonus of 40% so in simple math I have 250$ + 100$ bonus prize which adds to a total of 350$ that I now have in my account. Now what I need to understand is that in order to withdraw my deposit and the bonus I need to trade an average of between 20 – 30 times the volume of the bonus, depending on the specific broker I am trading with. For this example let’s assume my broker requires me to trade 20 times the volume of the bonus:

Since the bonus was $100, I have to multiply that with 20 so: $100*20 = $2000 (including losses). Basically, a total trading volume of 2000$ is needed in order to withdraw the full amount of profits plus the bonus prizes. In case I’ve decided to withdraw my money without meeting these demands, a proportional sum will be deducted from the account or in some other cases the broker will not allow the user to withdrawal without meeting these restrictions. These restrictions are not implying anything about a binary options fraud; they are actually a basic guideline for all bonus factors given by all binary options brokers. It is very important for a trader to carefully read all terms and conditions regarding the bonus restrictions and make sure he/she understands everything about these restrictions.

My advice for all traders is not to fall into the hugging arms of large bonus givers (over 35% is too much bonus in my opinion) and stick to brokers who offer low bonuses but yet considerable in accordance to the initial deposition. To summarize, bonus is always a great boost for the beginning, but it still has to be proportional to the initial deposition. One more important notice- Don’t get scared you’ll never meet out the minimum demands. The bonus is there to help you begin, but it doesn’t cover your losses. Use the prize money to trade smartly, very soon you’ll find out that trading in volume of 1500$ or so is actually one month of trading, maybe two. Using the bonus with care could really boost up your profits, but if you ask me, I would ask for the minimum bonus from your account manager (and thank me later!).

REMEMBER there’s no such thing as a Free Gift !

Related stories

• 

  5 Tips for Christmas Time Binary Options Trading

  By Richard Cox - Dec 18, 2012
• 

  The Great Binary Options Glossary by Bots.com

  By Martin K - Dec 11, 2012
• 

  2012 Recap – My Top 5 Binary Options Articles on BOTS.com

  By Richard Cox - Feb 05, 2013