Nearly all binary options brokers now offer some type of deposit bonus. These extra account funds are typically provided upon the submission of a deposit for a new account. However, some brokers also offer them on subsequent deposits. Although these are free funds, they do come with conditions which must be met before the money will be paid out to the trader. It is important to understand and accept these conditions prior to agreeing to accept a bonus.
Bonuses of between 20% and 100% are most commonly offered, but they can exceed 100% in some cases. When tiered account types are offered, the percentage is often based upon account type. Higher tier accounts are linked to extra services such as faster withdrawals, additional support, binary options signals, and more. There are clearly advantages to opting for these accounts, but the broker should be carefully evaluated to determine reliability before submitting a large deposit.
The conditions which must be met for bonus withdrawal tend to be quite clear. In most cases, a trade volume turnover will need to be reached. For example, you may be required to trade the bonus amount thirty times over before the money becomes yours. However, it may be possible to use the money to trade with immediately. Some brokers do apply the volume requirement to the total amount of the bonus plus deposit. This will make it tougher to meet the requirement quickly, unless the turnover rate is low.
A 30x volume requirement is relatively standard within the binary options industry. However, there are some brokers who have this set as low as 20x, or as high as 50x. Larger bonues with high volume requirements will make it tough to withdraw the funds quickly. The actual requirement should clearly be listed within the terms and conditions section on their website. If not, speak with a customer service representative to learn the exact requirements for withdrawal.
Yet another question which must be presented to customer service is whether or not any withdrawal can take place once these funds have been accepted. Most brokers allow traders to withdraw an amount which is equal to or less than their initial deposit amount. However, some do not process any withdrawals until the trade volume requirement has been met. It is extremely important to have the answer to this question prior to making a decision in regard to whether or not to accept these funds.
Acceptance of a bonus should never be mandatory, but some brokers do automatically add these funds to new accounts. Once a trade has been made, retraction of a bonus may be impossible. Should you not wish to accept a bonus, and one is added to your account, contact customer service and request that it be removed before any trades are taken. It is also possible to contact customer service in advance of making a deposit to decline these funds.
As frightening as bonuses may sound, they can be a wonderful thing for those who trade well. Each trade, win or loss, counts towards the volume requirement. Active binary options traders who are winning more than 60% of their trades should have no problem meeting these requirements and claiming the free money. So long as you fully understand what bonus acceptance means and are prepared to adhere to the terms and conditions, there should be no problems.