In this article we will talk about bonuses. We will discuss the reasons, advantages, disadvantages, and eventually we will summarize. So if you do not like to read “long” articles, skip to the end of the article for a quick summary.
What are bonuses
Bonuses are free money, that are being forced upon us by brokers. But why would anyone want to give us money for free? It is very simple, read on and you will know.
Simple distribution of bonuses
Bonuses for binary options can be divided into two groups. The so-called no-deposit bonuses and the after deposit bonuses.
No deposit bonus
No deposit bonuses are nice. Ideal if you want to try out a platform that does not offer a demo account. We can earn some money without having to make a deposit. Unfortunately, these types of bonuses are not widespread and at the moment I do not know of any broker who offers them. Usually they work so, you register on a platform and then contact the support. You tell them the bonus code and the manager talking to us adds money to our account with the broker (usually small amounts, such as $ 25 ) for free. We can start trading without a deposit.
People have different opinions on deposit bonuses. One side is happy to get free money, they are usually serious about trading. The other side that does not like this type of bonus, usually just wants to “test trade” and therefore they do not like the fact, that they have to wager the bonus and cannot withdraw it right away.
Aafter logging in and depositing money, we get more money on our account than we have deposited. Usually anywhere between 20 % and 100% extra.
But why would anyone give us money for free? Because it is in fact a good strategy for the brokers. And why? Because we must first wager certain amount of the bonus, before we can withdraw it and so there is a chance that we will lose our money before we are even able to withdraw.
Wagering actually means “waging certain multiple of the bonus”. So if our bonus is $ 200 and broker wants us to wager it 40 times before we can withdraw it, we have to carry out trades totaling in $ 8000.
This is what the first group of people likes – those who are serious about trading, because they would trade/wager the money anyway, whether they have a bonus or not. People in the second group however, do not like this because they want to make 10 trades and withdraw the money right away. That will not work though, because they did not wager the bonus.
Do I personally like the bonus? Yes, of course. It’s free money for me, because i know that majority of my trades are gainful, therefore i do not have to worry about wagering.
We get up to 100% of our deposit extra for free.
Extension of initial capital.
We have to trade with the broker for some time.