Nearly every binary options broker in operation now offers one or more ways for traders to receive free money. These funds rarely come without any strings attached, but those who know how to work the system correctly will be able to cash in on special offers without much, if any, hassles. The following are a few of the most common promotions offered by brokers today, along with how you can take advantage of each.
By far, the most commonly offered free funds come in the form of a deposit bonus. Typically, this bonus is calculated based upon the deposit amount. A larger upfront deposit will provide a larger bonus. However, there typically are limits, so ask your broker what the maximum bonus is before making a deposit. In some cases, additional bonuses are offered on re-deposits, but of course all traders hope to never have to make more than one deposit.
There absolutely will be terms and conditions associated with the acceptance of these funds. The most likely scenario will be the need to complete a specific trade volume before the funds become yours. This could be anywhere from 20-50 times the bonus amount. The deposit amount could also be included in the volume requirement as well. Do be sure to ask what the specific requirement is before accepting these funds. If the requirement is unreasonable, it may be wise to decline this type of offer.
Tiered account can provide various perks such as risk-free trades and other advantages. These accounts will sometimes offer higher payout rates, free withdrawals, and other extras that will either provide free money, or allow you to keep more of the money you already have. When offered, tiered account vary greatly from broker to broker. The deposit amounts required to obtain these accounts vary as well. There is no requirement to opt for these accounts, but they can certainly be worthy of consideration.
Another form of bonus is the referral bonus. This is a bonus that is credited to the traders account when a referred friend or family member registers and deposits with the broker. There may be trade volume requirements associated with this type of bonus as well, so be sure to learn the specifics in advance. Most “refer-a-friend” bonuses offer $50-$100 per referral, which can certainly provide a nice boost to your overall account funds should a few of your friends decide to start trading binary options.
Promotions such as trading contests can also provide free money and prizes. Not all binary options brokers offer these, but they are becoming more popular with time. Typically, there is not trade volume requirement linked to any winnings, but be sure to read the rules of the contest to be sure. Some brokers now offer massive payouts to contest winners, so those who are trading well will certainly want to enter into these contests to try to win money or prizes.
Bonuses and promotions are offered for one reason, and one reason only – to lure traders into a platform. These offers have been used as a marketing tactic by binary options brokers for quite some time, and have been quite effective. What is most important to realize is that while free money may be just that, there will be some effort required on your part in order to receive it. So long as traders know what the payout requirements are, these offers can be used to boost account funds.