Binary options bonuses can give you extra money to trade, sometimes for free with no deposit, but more often as an extra percentage of the amount you deposited into your account (a ‘deposit match’ bonus).
Binary options brokers are always eager to attract new traders. One of the main ways to get new customs is by giving them bonuses. This can come in many forms, from simple deposit bonuses or risk-free transactions to more complex teaching aids and high-tech gadgets. Brokers know how to attract new and old traders.
Here, we list and compare all the bonuses in 2020, and explain the key points to ensure that the bonuses you earn are a real boon and not a source of frustration. We’ll take a look at some of the common bonus types so you can get them at the right time. It also explains why some of the traps and all that glitter isn’t gold.
Best Bonuses of 2020 for Korean Traders
What are binary options trading bonuses?
Binary options bonuses are offers from brokers designed to provide traders with additional funds to trade or mitigate losses when traders err. Usually the offer is in the form of a welcome bonus or a sign-up offer as it is sometimes called. It is not only a welcome offer, but also an incentive for new customers to engage with that particular broker.
It comes in many forms, for example:
- No deposit bonus
- Deposit match
- Risk-free transaction
- Education materials
- Hardware or products
Bonuses always come with terms and conditions. This term is the most important aspect when comparing bonuses. For example, small ‘no strings’ bonuses can be much more attractive than larger ones with very restrictive terms and conditions.
Welcome bonus example
Let’s take an example. The most common form of bonus is ‘deposit match’. Here, when a new trader opens an account, the first deposit accrues a bonus. This is usually a percentage of your deposit. Assuming your deposit is a 50% bonus deal:
- Merchant makes a deposit of $200
- A bonus of 50% ($100 in this case) is added to your account
If the Deposit Match Bonus figure is 100%, the same trader will receive $200 in bonus funds.
Risk-free trade
Risk-free trading is another simple form of bonus. One appeal of risk-free bonuses is that their terms are usually less restrictive. Risk-free trading gives traders the opportunity to place trades. If it wins, they keep the profit.
Some brokers offer 3 to 5 risk-free trades and they all operate the same way. However, the more trades there are, the more terms there are. For example, in the case of a risk-free trade, the broker is likely to pay out the winnings in cash. You can withdraw immediately. If the broker offers more risk-free trading, it must be “transferred” several times before all winnings are withdrawn.
This is one of the reasons terminology is so important when comparing bonuses. At the end of this page, we take a more detailed look at risk-free trading and explain why there is always some level of risk involved.
No deposit bonus
The ‘No Deposit’ bonus does exactly what the name suggests. Bonuses will be credited to your account without an initial deposit. It’s an attractive option for traders, but as explained above, it’s important to read the terms and conditions. No deposit usually requires a very high turnover rate before funds can be withdrawn, and this requirement usually needs to be met in a short amount of time.
As the terms and conditions get tougher, a live account with a ‘no deposit bonus’ actually works in much the same way as a demo account. The reason is that these bonus funds are unlikely to be withdrawn, and are not “real money” until certain stringent criteria are met.
Bonuses of this type are also rare. It doesn’t work well for brokers or traders. In recent months, it has switched to ‘risk-free’ trading rather than deposit bonuses. This allows traders to use real money platforms, but few trades without financial risk. Brokers now tend to offer risk-free trading or deposit match bonuses.
Best time to claim your bonus
The best time to claim benefits is often not when you make your first deposit. For some brokers, the best course of action is to open an account with a minimal deposit to get a lower bonus. Then, after the trading period, call your broker and negotiate a bonus directly based on a larger deposit. This is especially effective if you have a larger amount to invest. The larger the second deposit, the better the bonus conditions.
If that seems too much of a problem, new traders should definitely research the potential bonus and see if it works. Make sure you can comfortably meet the bonus conditions without changing your trading habits. Pay special attention to the turnover requirements and the time limits you have to meet the time limit.
Terms of use
When comparing bonuses, there are certain issues traders should be aware of. All of these problems are usually within terms of somewhere, so it’s important to identify them. Here are a few details to keep an eye out for when checking the fine print of the bonus deals you find:
- Withdrawal Restrictions – Almost all bonuses have: For example, do turnover requirements have to be met and must be met within a certain amount of time? The larger the deposit, the more restrictive it is. A $100 bonus that requires 20 spins or more represents a trade worth $2000.
- Is your deposit locked? – There is a form of bonus that actually locks the initial deposit and the deposit itself, so nothing can be withdrawn until you meet the turnover requirements. These bonuses are thankfully rare, but they are a huge advantage for traders. It is best to avoid completely any brokers who use this kind of terminology.
- How are bonuses paid? – Are bonus funds separate from deposits? If so, it’s usually better.
- How are winnings paid out for risk-free trades? – Will the earnings be cashed into the account or added as a bonus fund (own conditions met)
Finding the best offer
As we’ve covered, finding the ‘best’ binary options bonus is a case of exploring the terms and conditions. Only then can you determine if a bonus fits your trading style. Large bonuses with restrictive conditions are worthless unless you over-trade and those conditions are met. A small bonus with few limits can welcome your trading funds. When it comes to bonuses, the biggest isn’t always the best.
Finally, reputable, high-quality brokers make it easy to opt out of bonuses. Some may even cancel bonus deals midway through. Brokers who have paid out bonuses can be seen as red flags. If a bonus doesn’t suit you, decline it.
Why you don’t want that deposit bonus
Deposit bonuses are a common feature of binary options brokers today, which new traders use as an attraction to open and finance an account. Who wouldn’t want free money? But the question is, are they really free? There are many reasons why your bonus may not look free and why you may not accept it.
Trade Minimum – All bonuses come with a trade minimum. This is the amount you need to reach before the bonus amount can be withdrawn from your account. The minimum is based on the original deposit and if you deposit $2000 as a bonus and get a 50% bonus, the minimum is $3000. The average trade minimum is between 20x and 30x your total account value. We’ve seen it as high as 15 times or 40 or 50 times the total account value. This means that an account with a total of $3000 must have a total of $45,000 in trades before receiving the bonus. I want to trade 1% of my account at a time so that no single trade will damage my account. In a $3,000 account with $30 trades at a time, $45K divided by $30 is 1500 trades. Of course, you can make larger trades to liquidate your minimum faster, but it can also result in catastrophic losses.
Time Limit – Some, but not all deposit bonuses have a time limit. It is usually 30, 60 or 90 days. This means you must reach your trade minimum before the time limit expires before you can withdraw. We don’t want to imply that you can’t turn $3,000 into $45,000, but consider that opportunity within 30 days. You may not like to trade more than your budget or system allows. Time limits may be another reason to shoot for the stars and trade more often than usual or with larger amounts and risk your portfolio.
Withdrawal – The bonus makes it difficult to withdraw money from your account. Some of the shady brokers do not allow you to withdraw your money until you meet the minimum trade limit. Brokers where you cannot withdraw bonuses or part of the profits depending on the bonus. In either case, the provisions of the terms and conditions generally result in forfeiture of the entire bonus and all profits with any withdrawal request prior to meeting the withdrawal requirements. If you trade your $3,000 account up to $10,000 or $15,000, you can withdraw some of it.
According to this broker (OptionYard), the bonus is not redeemable for cash value and is very shady.
Free Signup Bonus – A free $50 or $20 signup bonus is not uncommon these days. This is a “free” bonus you get when you sign up for an account and no deposit is required. Maybe. The only way to get the bonus is to deposit money and then meet the bonus requirements. In addition to the signup bonus, you can also get an additional deposit bonus. This means that bonus requirements can be quite high. Check out the examples of your preferred brokers.
There is a reason why brokers continue to use bonuses as incentives. They know that the average binary options trader is more likely to lose all their money than clear the bonus requirement. This is why the minimum requirements are so high and the time limits so short. You will likely have to engage in risky trading behavior to reach the lower limit. Every time you try to accept a bonus, read the terms and conditions to fully understand what is required to clear the minimum. Just like everything else in life, not all brokers are the same and the bonus policy regarding bonuses and bonuses is really yours too.
Bonuses are often automatically applied to your account by your broker once funded, so make sure you can opt out of the bonus before committing. To opt out of you, it is the merchant’s responsibility to contact their account manager. Some brokers offer different bonuses from time to time, so read the terms and conditions before accepting them.
The risks of “the-risk-in-risk-free-bonuses”
There is a risk of risking free trades that the average binary options trader is unaware of. Hopefully we can shed some light on what to look for.
While there are some obvious advantages of using risk-free trading that you won’t lose, there are still some downsides to the equation that can really make you think twice about using them. What follows is a description of some of the types of offers you may find and why they are not as risky as the ads.
Free $50 offer or no deposit bonus
Some brokers will give you a free $50 to start trading. This sounds great and is a potential way for traders to utilize a broker for demo trading purposes. Of course, $50 should be enough to get you a deal.
To enhance your trading, some brokers will tell you that you can withdraw $50 if you meet the trading minimum and quantity requirements. This in itself is not uncommon and the bonus has a term. But beware of the related “ties”. A minimum deposit is a mandatory requirement to unlock withdrawals and falls under the “No Deposit Bonus”. Of course you can get it. Of course, you can only withdraw after depositing. This deposit may be even higher than the original bonus.
Free demo or risk free trading
Some brokers offer free demos to potential clients with just an email address. No worries, but it’s nice to get an email to get your free service.
What’s not good is advertising a free demo and asking for a deposit to get it. It’s bait and switch. The demo is free once you deposit with us. What’s worse is that most brokers using this tactic are using deposits and “demo bonuses” without actually offering a demo account. Volume minimums and cumbersome withdrawal requirements. We do not list brokers that operate like this, but they are worth finding out.
Cash Rebate Programs
Are cash rebate programs really bad? This usually requires a certain minimum deposit, a certain minimum maintenance balance, and trading volume. But here’s what you need to know – some rebate programs only pay you back for your losses.
If you are a net loser that month you get back some of your losses, if you are a net winner you get nothing. The kicker is that if you are a net loser you will have to make another deposit to maintain the balance requirement (if any). Some rebates don’t require a minimum balance, so you have to lose money.
Also, rebates are often paid out of the bonus fund on their own terms. So they are often not that attractive.
Risk free trade
The worst of the worst of risk-free offerings are out-and-out risk-free trades. Some brokers offer risk free on the first, second and third trades. They always come with a minimum deposit and an automatic bonus.
Without automatic bonuses, lost money turns into bonus money. Your balance is still the same. Did you take a risk-free trade or lose money? “Real money” has been replaced by bonus funds with terms for withdrawals attached. There are still some risks.
