The good and bad of a welcome bonus
Trading bonuses are a common feature that binary options brokers often offer. They are a way to reward you, the customer as a way to thank you for signing up, for loyal use of their platforms or just cause they are feeling generous.
Binary options bonuses offer more value to a system as it allows you to make more trades and offers you a way to play out different binary options trading strategies whilst minimising the risk that you will lose your initial investment. They allow you to get to grips with how to trade meaning you can familiarise yourself with the systems, platforms and other data charts to give your trade learning an initial boost.
We have outlined a few types of broker bonuses that they may offer. As we stated before brokers will have their own set of bonus offers and it’s best to check them out as well as read up on how theirs work first. One thing is clear, when selecting a top binary options broker leave whether or not they offer welcome bonuses till last and find out the other key features that they offer first so that you know for sure that they are worthy of your money.
Typically brokers like to help you get started in your trading ‘career’. They will offer new customers an incentive called a ‘sign up bonus’ to make it easier for you to make an initial trade. This type of binary options bonus allows you to get familiar with the platform, how it all works and provide a way to gain experience in trading binary options and the financial markets.
A matched deposit is where a trader (like you) will be given an extra percentage of your deposit on top of what you just deposited for free. This means that you can take advantage of this by depositing a slightly higher amount than normal in order to take advantage of the offer. This should be down with caution though and often no matter how appealing it might be to deposit high to get back more you need to make sure that you are still trading responsibly and within your means.
An example of a matched deposit would be if you deposit $500 and the offer is for 50% deposit match then your account would be funded with an extra $250 in it making the total amount that you could trade with up to $750, which is a 50% increase on what you deposited. Different brokers offer a variety of prices and this could range from 25% sometimes up to 100% and even above.
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Refer A Friend
Brokers like it if you spread the word about the service the they provide and some may even offer you a bonus if you manage to refer people to sign up. Often this involves you providing your friends and family with a special link which allows the broker to know you are the one that has referred them. Not all binary options trading brokers offer this and the value of the referrer bonus is unique to them, watch out for it though as it could be a good way to add a little more to your trading amount. We should suggest though that you are careful to who you refer and only refer those that have the financial means to trade, be responsible and have fun.
A rebate bonus is where you get back a portion of the deposits that you have made over a specified period. Usually brokers tend to offer rebate bonuses at the end of the month and the percentage of the investments you get back can differ between brokers. This is a nice little reward for being a frequent investor and trading regularly, so watch out for this on the bonus list.
Check the Bonus Terms and Conditions
If you are looking for a broker and find one that offers great bonuses that seem to good to be true then perhaps they are. Be sure to check their websites thoroughly for any information about them including specific terms and conditions about how you receive your bonuses and what you can do with the extra investment money. Some brokers may enforce certain restrictions on them and not let you withdraw any funds until you have used the allotted bonus money in your account.
An example of this would be: You open an account with a respected broker and deposit $1000 and you get a 50% sign up bonus. Sound great right? If the restriction was you have to trade 20 times the initial deposit amount then you would have to trade $20,000 worth of binary options before you account will be credited with the extra $500. Just make sure you read the terms and conditions carefully and don’t sign up just for the bonuses.
Overall trading bonuses can be a great way to boost your investment opportunities, gain some learning experience and can be unexpected little rewards for being a good trader. Be sure to check them out on the specifics when looking for a broker but don’t make your search for the perfect broker all about the trading bonus they offer. Use your bonuses wisely and even though it is extra cash for you to trade with make sure you make it count. Never deposit more than you can afford just to receive a bonus and you should be well on your way to becoming a regular profitable investor.