All Binary brokers use the bonus money to attract more traders as who doesn’t like free money!?
Well is it really free!? Well the answer is simply NO! You need to know that unfortunately, there are no free gifts and that there is always something behind this habit of companies to give out No Deposit Bonus.
The only case we have encountered of a No Deposit Bonus, is when binary brokers offer a demo account, which is great but you won’t be able of course to withdraw that money out to your bank or credit card account .
The other bonus given out by binary broker is the Sign Up Bonus. The 2 main objectives that stands behind bonus give aways to is:
- It is a great tool for companies and sales representatives to make you invest more than what you were intending to invest from the first place.
- The bonus is a tricky way to tie you in with the company as in order to take it out you will to complete a certain trading volume requirement.
Assuming you’ve decided to invest in binary options and you are considering taking a bonus that brokers offer – now how can you make the best of your bonus? In some ways this depends on the type of bonus structure offered, so let’s look at the key kinds of bonus types and how you can maximize them.
The sign-up bonus is typically key to long-term trading strategies and success. Given as a “welcome” to new investors by most brokers these days, the sign-up bonus is a way for you to increase your initial capital investment. However, it is essential that you the investor are familiar with your broker’s terms regarding use of the sign-up bonus.
For example, brokers love to offer bonuses that have trade volume requirements in place, so that it is basically impossible for you to ever reach the requirement and therefore gain access to your bonus. In this scenario, let’s say you start with an initial investment of $1,000, and your broker offers a 50% sign-up bonus. Great, now you have $1,500, right? Not necessarily. Let’s say this broker has a requirement that you reach a trading volume of $10,000 before you are able to access or withdraw that money (sometimes withdrawal isn’t an option – be sure to check).
Ask yourself realistically how long you will need to be trading – and how potential losses will impact your cash availability – which will help you decide whether or not you’ll reach that milestone.
Similarly, matched deposits can too easily entice new investors to make deposits above what they are comfortable with, and in the case of any losses, this can be devastating. Always remember that while bonus money is free, it’s up to you to know how and what structure will work the best for you.
A final note – if it sounds too good to be true, it is. Unscrupulous brokers love to offer 100% bonuses to new investors, but recent scams include running away with the investor’s money or at the very least, unrealistic requirements that the investor can never reach, so make your homework before accepting to offered bonus money.