No Deposit Binary Options Bonuses

No-Deposit Binary Options Bonuses

No deposit binary options bonuses are monies provided as trading capital to new binary options traders without a prior commitment from the trader to deposit money into a live trading account. In other words, a no-deposit binary options bonus does not require a previous monetary deposit by the trader into the binary options brokers trading account before it is applied.

This form of bonus is in complete contrast to the regular bonuses provided to new traders, which usually require a monetary deposit into the trading account.

Why Do Brokers Provide No-Deposit Bonuses?

The market structure is very dynamic. Binary options are relatively new financial instruments. They have only been around in the retail trading sector for 9 years. When compared to forex (20 years), stocks (more than 100 years) and options/futures trading (more than a century), we can see that binary options are so new that there is still a lot about the market and its participants that is still unraveling. One of these topical issues in the binary options market is that of bonuses. Traditional bonuses have the following characteristics:$100 Free No Deposit Bonus

  1. Require a prior deposit.
  2. Must be used for trading.
  3. Come with volume requirements.
  4. Do not take into account the skill level or experience of the trader.

It has been found that the use of traditional bonuses by new traders, though well-intentioned, does not always produce the desired effects for traders and brokers. Most telling is the fact that new traders are not very skilled, tend to use the bonuses irresponsibly, and do not know how to apply proper risk management techniques when using bonuses to set trades.

This is why some brokers decided to change the pattern of bonus awards. Instead of asking these new traders to commit money that they are likely to lose (a situation which dissuades them from further trading and leads to loss of revenue for brokers), these brokers decided to give new traders an opportunity to test the market under real money conditions by providing a no-deposit binary options bonus.

Most of these no-deposit binary options bonuses are not large, and for good reason. This is because the essence of providing these bonuses is a lot different from that of conventional deposit bonuses. The reasons for providing a no-deposit bonus are as follows:

  1. Enable the new trader to transit smoothly from a demo account (which hardly puts the trader under any pressure associated with real money trading) to real money trading conditions. Trading on demo only does not adequately mirror the psychological pressures that come with putting real money at risk in the market. A trader who moves from a demo account straight to a large, real money account will be unable to cope with the sudden transition.
  2. The no-deposit bonuses are small, and purposely kept so by the brokers. With most no-deposit bonuses peaked at $100, the trader is forced to set trades carefully and using the lowest risk parameters possible to preserve capital. No-deposit bonuses are therefore a lesson in risk management.
  3. Conventional bonuses are provided as a percentage of the trader’s new account deposit and come with hefty volume requirements. No deposit bonuses do not come with such hefty requirements since their amounts are small and capped. They are therefore a better alternative to the use of conventional deposit bonuses.

 

No Deposit Bonus

 

List of No Deposit Binary Options Brokers 2017:

We are now in the 1st quarter of 2017 and many of you reading this piece would surely be asking for information on which brokers are offering no-deposit binary options bonuses. We have a list for you below. You are at liberty to pick any of the brokers in this list that will meet your needs in this regard.

Hirose UK

Hirose UK is a forex and binary options brokerage house which offers among several bonuses, a no-deposit binary options bonus worth $10 or £10, depending on your account currency. All you need to do is to fill the account opening form on the website of Hirose UK and you will be provided with the bonus. There are conditions though. First, the no-deposit binary options bonus is only provided at certain times of the year (usually announced). Secondly, you need to generate a trading volume that is equivalent to 20 times the bonus (i.e. $200 or £200) to be able to withdraw it. Alternatively, you can make a deposit further down the road of just $20 so you can withdraw the bonus.

AnyOption

All through 2017, AnyOption is giving its new traders a $50 no-deposit binary options bonus. To claim this bonus, you must sign up for a new AnyOption account through any of its authorized affiliate agents offering the bonus link. Terms and conditions apply and these are communicated to the new traders via the account managers. 

Ayrex

Ayrex is another new binary options brokerage taking the world by storm. Ayrex offers a $30 no-deposit bonus to new traders. To be able to convert the bonus to withdrawable funds, the trader must either generate a trade volume equivalent to 30 times the bonus (i.e. $900 worth of trades), or try to increase the $30 to $200 through trading. Once this milestone is achieved, the bonus can be withdrawn or used for further trading. To receive the $30 bonus, you have to sign up for it on a dedicated offer page. Furthermore, only a select number of countries have access to this page, so the bonus is actually not universally accessible to all traders.

MarketsWorld

MarketsWorld works with several affiliate partners to deliver the $50 no deposit bonus. Traders are required to generate 30 times the bonus amount in commissions before they can withdraw from their accounts. The bonus is provided in the form of a cashback. So the trader actually has to make a deposit on the first trades of up to $50, but will get a no-deposit bonus as a cashback if the first trades end in losses of up to $50.

OptionRally

A no deposit binary options bonus worth $50 can be obtained from OptionRally by signing up with a network of affiliate partners. Simply sign up for a new account there and get the $50 no-deposit bonus credited to the trading account within one trading day.

Option Banque

This broker offers probably the highest no-deposit binary options bonus as at 2017. Traders can get a $200 no deposit bonus courtesy of their affiliate partners.

RoboOption

RoboOption gives out a $30 no-deposit bonus. Traders receive the bonus when they sign up for a trading account from an affiliate partner. There are volume requirements for this bonus. Account managers usually pass the information on request to their traders.

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No Deposit Bonus

 

How to Calculate Volume Requirements for Your No-Deposit Bonus

All bonuses, deposit and no-deposit bonuses alike, come with volume requirements. However, the volume requirements for no-deposit bonuses are not as humongous as those of the deposit bonuses since the amounts provided as bonus are small. That does not make them any easier to attain. As a new trader with limited knowledge of the intricacies of the binary options market, you need to know exactly what is required of you in terms of making up the volume requirements that will convert the bonus amount into money you can withdraw.

So, let us use the example of AnyOption, which provides $50 as a no-deposit binary options bonus. To be able to withdraw it, you can generate a trade volume that is equivalent to 20 times the bonus amount. In other words, you must generate a trade volume of $1000. What does this mean?

The trade volume is made up of any money you invest in a trade. So if you invest $20 into a trade, your trade volume is $20. Payouts do not count towards this volume. The trick is not to jeopardize your bonus by excessive trading or by using investment amounts that are too large for the account to handle. In other words, if AnyOption offers an option of $1 as minimum investment amount, check to see how many of such trades you can take at once in order to stay within a risk exposure that is equivalent to between 3% and 5% of the account size. 3% of $50 is $1.50. So you can ideally, only trade a maximum of 2 positions worth $1.50 simultaneously at any given time. This gives a total trade volume of $3.

At this rate, you will need 350 trades to meet your target (300 X 3 = 1,050). To stay profitable without diminishing your bonus, you need to win at least 230 trades out of 350. There are many assets traded on the AnyOption platform. You can conveniently take 10 trades in a day, taking care to analyze them properly. This gives you roughly 30 trading days, at the same trading frequency and investment amount, to achieve your target.

Alternatively, you can use the principle of compounding where as your profits grow, you can increase your trade size. This will help you achieve your targets in quicker time. Please note, that this is only a hypothetical explanation of how you can generate the required trade volumes without diminishing your no-deposit bonus, which serves as your only source of capital. In practice, it is not as easy as depicted and many of you may not be able to do this.

Uses of No-deposit Binary Options Bonuses

Traders can use the no-deposit bonuses in the following ways:

  1. a) As an advanced form of simulated trading
  2. b) Gradual capital appreciation for those without additional funds
  3. c) Undertaking a study on trading discipline and risk management

 

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No Deposit Bonus

 

Advanced Simulated Trading

This involves using the no-deposit account to test the waters of live trading without risking any money. This is far better than any kind of virtual account trading where so much capital which the trader will not summon in a live account is loaded into the demo account, giving users a false sense of security and preparedness. By learning how to use small but real money in a live account, a lot of valuable experience in terms of risk management, trade conditions and technical/fundamental analysis will be picked up. In trading, acquisition of experience is sometimes the best currency that is available and empowers a trader far better than any book, course or seminar will.

Gradual Capital Appreciation

A trader who respects the rules of money management and uses the no-deposit bonus wisely over a period of time can turn a small no-deposit binary options bonus into something much more by the power of compound interest.  It requires an extremely low-risk approach to the trading process to succeed at this venture. We have explained a little bit about how this works in the sections above. Many traders can actually start off trading with no money of their own in this manner.

Trading Discipline & Risk Management

Trading discipline and risk management are the tools that will ensure that trading losses do not mean the end of the trader’s career. Every trader, no matter how good, will sustain losses. Losses in the binary options market are unique. Losses erase all the invested capital. Profits will only pay a maximum of 90% of invested capital. Therefore, you need approximately 2 wins for every loss to break even. Therefore, your approach to trading by applying discipline and reducing the effect of losses is very important. Unfortunately, this is not taught in many trading schools and many traders are forced to learn these lessons the very hard way.

You can use a no-deposit binary options bonus to practice and gain experience in trading discipline and risk management. This is because the bonuses are small and are finite. You do not have unlimited access to such bonuses. So you must use what you have as carefully as you can, and this hoists on the trader’s shoulders, responsibility in trading and managing the little bonus that has been allocated.

The no-deposit bonus is a useful tool for traders in the binary options market. Traders should try to maximize the benefits that are inherent in these bonuses.

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