The dramatic events of 2008 in global financial markets forced people worldwide to seriously reassess aspects of their overall investment strategy. Whether it was with FHA housing loans or online brokerage accounts, in many cases this involved becoming more pro-active in the management of their own money rather than trusting that their broker would simply take care of everything.
An option that many people have gravitated towards since then is binary options trading, a
class of investment that up until recently was reserved for the mega-rich. Legislative changes in 2008 opened the door for ordinary investors to get on board and takeup since then has been swift.
One of the aspects of account management that's often of most concern to new investors is the subject of binary options bonuses – specifically what options are available and how to make the best use of them.
This article will go deep on that very subject. We'll cover the basics first and then dive into more advanced topics such as bonus levels and specific trading strategies to maximise your use of them.
Let's begin with an overview of the types of bonuses on offer.
An Introduction to Binary Option Bonuses
Put simply, binary options bonuses are incentives offered to investors at various stages of their account lifecycle.
The field of binary options is a fiercely competitive one and it is massively in brokers' interest to make their offerings as enticing as possible. A good range of bonus offerings is one of their main ways of distinguishing themselves from competitors so you can expect to find something on offer with nearly every account.
The following is an overview of the main types of bonuses on offer online.
Sign-up or "welcome" bonuses are the first type of bonus you'll come across when choosing which account to go with. These are generally divided between deposit and non-deposit versions and the difference between the two is relatively self-explanatory.
With deposit bonuses, brokerages will offer to match either your entire initial deposit amount as a bonus or a percentage thereof.
Non-deposit bonuses, on the other hand, do not require any initial deposit whatsoever. This makes them effectively a free way to experiment with binary options trading and test out the overall account functionality on offer.
Subsequent deposit bonuses
Many trading accounts will also offer a certain bonus amount available on every subsequent deposit. If you are expecting to be a high-volume/high-frequency trader, this type of bonus should be of interest.
Rebate bonuses are essentially a reward for continued business with a percentage of the deposits you've made over a specific time period being offered as a bonus. Those familiar with the world of online poker may be reminded here of rakeback, a very similar type of bonus concept.
The next main type of bonus you'll see on offer are referral bonuses. These take place when you recommend the services of a broker to a friend or acquaintance. If they subsequently sign up with the broker, you will then be eligible for a finder's fee.
An advantage of these types of bonuses is that there are usually very few restrictions on how many times they can be claimed, meaning that if you have a large circle of acquaintances you could stand to benefit substantially from them.
Another option you'll often run across are non-financial bonuses. These most often arrive in the form of educational or training materials seeking to get newer investors up to speed or explain more complex trading strategies in depth to experienced traders.
You'll also see occasional free giveaways of devices such as iPads, smart phones or laptops offered as non-financial bonuses.
Detailed Advice On Binary Options Bonuses
Now that we understand the basics of what binary options bonuses are – and can identify the main categories – let's look at some more detailed information on aspects of their use.
Pros And Cons Of Binary Options Bonuses
We'll start with the pros and cons. At first glance it might seem like it is all upside when it comes to bonuses. You may be thinking to yourself, surely it's just a question of finding the best bonus on offer and proceeding from there? Well, yes and no.
Bonuses are a great way of maximising your potential returns on binary trades but don't fall victim to the fad of "bonus chasing". Far more important for your long-term success is following a sensible trading strategy and concentrating on actual return on investment rather than fixating on bonuses. Just as with managing a budget, slow and steady wins the race.
Which Bonuses To Focus On
Of all the bonus types on offer, the ones to focus on long-term are the rebate and subsequent deposit bonuses as they will pay off the most over the lifetime of an account. Large deposit bonuses are designed to attract newbie investors with the promise of immediate returns but canny traders know that it's a marathon not a sprint.
Trading Strategies To Employ
Binary options are a conceptually simple trading option in theory but in practice things can get considerably more complex. The subject of trading strategy is an immense one that rewards detailed study.
In the context of maximising bonus related opportunities, a single asset focus strategy makes a sensible starting point. Concentrating your initial resources on an asset class that you know intimately heightens your overall chances of immediate success while minimising the risk of losing focus. Once you're comfortable with the basics, it might be time to explore the world of auto binary signals.
Another more advanced technique to consider is combining your put and call options with a straddle strategy. This gives you a way of effectively hedging your bets and can be a sensible way of minimising initial risk exposure.
Bonus Levels On Offer
Naturally by this point you'll be curious about the actual bonus levels on offer from providers. The numbers vary according to provider but we can offer some general guidelines.
Before we do so though, it should be pointed out that every bonus you see listed online will come with attached bonus conditions that have to be met in order for it to be redeemed. These will often be linked to the amount of money actively traded in your account. Standard conditions generally require you to trade up to ten to twenty times the amount on offer in the bonus.
Deposit bonuses will usually be on offer from a minimum of 15% all the way up to 100%. The higher amounts will generally be tied to a minimum deposit threshold that you have to surpass, typically $250 to $500. Again, check the conditions carefully the higher those numbers get. Also bear in mind that most accounts will also have a maximim bonus payout specified in the conditions.
No-deposit bonuses have declined in popularity somewhat over the years. These days you'll often see more straightforward demo accounts offered in their place. The majority of no-deposit bonuses on offer will be in the sub-$100 dollar range and you should bear in mind that, just like their deposit cousins, they come with bonus conditions attached that govern how they may be actually redeemed.
An important point to note here is that, though you can start trading with them instantly without a deposit, redeeming them will generally require that you deposit some money with the broker in question. Again, check the conditions with your broker prior to signing up.
Funding Options Related To Binary Option Bonuses
In order to qualify for many of the bonuses we've discussed, you will of course need to have a suitable account funding method in place. Options here are relatively standard and will generally include some or all of the methods below. It's often worth having more than one method established with a broker for reasons of convenience and security:
- Mastercard and Visa: Still very much the dominant options when it comes to account funding, these two credit card heavyweights both offer flexibility, industry leading levels of security and the opportunity to earn bonus points that can be redeemed on and offline.
- Paypal: Online e-wallets have been an increasingly popular funding method for nearly a decade now and Paypal is the clear leader in the field. Investors in Europe and Asia may also want to check out the up and coming alternative Skrill.
- Bitcoin: It's early days in the emergence of Bitcoin as a true global payments platform and the digital currency is still occasionally dogged by volatility and scandal. It remains a popular choice among technically literate investors however.
Other Bonus Opportunities Online
Now that you're more up to speed on the types of bonuses on offer with binary options, you're free to leverage that knowledge in other trading or even gambling environments. A similar range of inducements will usually be on offer across the following areas:
- Forex: Sign-up bonuses of the deposit and non-deposit varieties are common with Forex trading accounts.
- Casinos: Online casinos will almost always have a full range of bonus offers in place to entice new players and reward existing customers. Look for things like rollback offers in poker and large deposit match bonuses available throughout the industry.
- Sports betting: In addition to the standard deposit bonuses on offer here, you can also expect to find a lot of bonus promotions tied in to specific sporting events. These may include items such as money-back offers based on certain outcomes or even early payouts.
We hope the information above proves useful in helping you choose from the field of binary options brokerages competing for your business. Though binary options bonuses are far from the only factor you should consider in weighing up which provider to go with, they are certainly an important one. We wish you all the best in your trading activities and organising your retirement savings!
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