One of the greatest marketing tools of all binary options broker is to attract customers with attractive welcome bonuses. Today we will explain to you when to accept a bonus from your Binary Options broker
As of today traders can get many welcome bonus offers of 100% up to a value of $2500 or more.
What does it mean? That such money will be credited by the broker in the form of bonuses.
By looking at it in this way that could sound great BUT of course nobody in the world gives anything for nothing.
By accepting the bonus you will be bounded to certain terms that include the impossibility to withdraw your money from the account until you have multiplied your capital a certain amount of times.
When to accept or not a bonus from my binary options broker?
How to properly evaluate the broker’s proposal?
First, you have to analyze whether the required volume is within the reach of your trading style or not.
We recently analyzed the terms of a very famous broker: 24Option.
24option offers the bonus from 20% to 100% related to the size of your deposit and requires a commitment to a trading volume of the received bonus x50 times, before granting the possibily to withdraw your balance.
This is how it works:
Deposit: $500 – Bonus received: $200 (40% of the deposit) – the minimum volume of transactions in order to cash will be $10,000 (200 × 50)
Foreseeing a total deposit of $700 you can decide to set my positions on the value of $25 and would reach the amount of $10,000 only after you opened and closeed at least 400 positions.
It’s clearly an horizon, which could be very far and often the beginner does not have the patience to reach. In short, you could end up opening positions following the “all or nothing” approach, with no logic, just to try to hit the required volume quickly. And this is when you will lose everything.
When dealing with the binary option as it happens with similar skill games the payout is theoretically 60 ~ 70%, but statistically the more you go ahead and the more you will lose.
Almost all the brokers offer bonuses, and there are continuous promotions based on their welcome bonus. The average volume required is usually 40 times the bonus.
The professional traders usually reject these bonuses, and this is what also begginers should do unless they are prepared for long trading sessions.
In general you have to be very rational and evaluate the convenience on time, compared to your habits, personal risk tolerance ecc…
Is there a bonus which we recommended to accept?
Well, it’s always better for new traders (except amazing promotions) to not accept any bonus!
Our advice is to open a regular account with IqOption and start doing binary trading with small investments.
You will then gradually learn (even by losing some money) the basic rules of binary trading.
Binary options are not a random game and you need to learn, study and gain experience.
Once you understand what are your real capabilities and monthly volume you can consider whether or not to accept a bonus.