Binary 8 bonus

What amount are you thinking to deposit? Now that's not saying that you will be successful every time but making mistakes is ok especially if you have a bonus to fall back on.

Real forex bonuses

Making mistakes with the bonus means that when it comes to spending the real money, you should have got most of the beginner mistakes out of the way. We all know that from mistakes come successes, so it's not a bad thing to make them early on.

Bonuses and incentives

Let's be honest, if you are looking to open an account and start trading today why wouldn't you want to take advantage of the best bonus on offer to increase your potential profits and give yourself extra cash to trade with? With brokers offering an array of different deals, it can be confusing to know which one you should choose and why.

With the trading marketplace being hugely competitive, many brokers are competing for their share of the market and trying to entice you in. Not only do they want you to trade with them but, they want you to keep coming back and so, nearly all regulated binary options brokers offer attractive bonuses.

How do you find them? Well, we have done the hard work for you and can share our extensive research and findings to help make your decision a less complicated one. Our experienced team have looked at what the market has to offer and drilled deep into each site to come up with a list of trusted brokers.

In this article, you will learn:

Top rated options sites

Risk warning: the products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. You should never risk money that you cannot afford to lose.

Ad disclosure: some of the links that you will find on this website are advertisements for which we do receive financial gain for referring new customers.

Various types of bonuses

Binary options bonuses come in a variety of shapes and sizes. Here we show you the main types offered by many of the top brokers.

Welcome bonus

New users that set up an account and make their first deposit will get a welcome bonus. Often the welcome bonus is the same as your initial deposit or a set figure. It is excellent for the first time trader because you can use the extra funds to gain some valuable experience.

Deposit bonus

When you make a deposit this type of bonus is activated. Users won’t be offered a fixed sum because the premium is a percentage of the deposit. This type of reward is offered to both new and existing customers.

No deposit bonus

Quite simply it is what it says, a no deposit bonus. No deposit bonuses are very popular with newer traders in that there is no financial risk. You register an account and get free money to trade. The broker hopes that once you try it out and enjoy the experience, you will want to continue trading and will make a further deposit so you can increase your scope.

Mobile bonus

In this fast moving technologically advancing industry the race to keep up with the pace of the market means that most brokers now have developed a mobile offering that includes a responsive mobile site and an app. To ensure that use of these trading methods is taken up some brokers offer incentives to customers who trade using the mobile applications.

Alongside these popular options are also loyalty schemes, referral bonuses, retention and re-activation bonuses. All are intended to provide an incentive to attract new customers and keep them coming back to trade.

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Ad disclosure: some of the links that you will find on this website are advertisements for which we do receive financial gain for referring new customers.

How a bonus helps you

Quite simply the best binary options bonus will help everyone from the novice to the seasoned professional when it comes to trading. Ok so it won't give you a magic crystal ball to predict the outcome, but it does give you a very nice cushion of added money to trade. If you deposit $250 and play with 250 dollars at $2 per trade that's 125 trades. While that is a fair amount of trades imagine how much experience you will gain with double that amount. If you are new to binary options trading, you could use the free 250 dollars to practise with before you start risking your own money.

Once you start trading for the first time or even in a new market, you may make mistakes and make the wrong choices. Once you get used to the site and get more confident in what you are doing the mistakes you make will be less, and you will start to get used to what you are doing.

Now that's not saying that you will be successful every time but making mistakes is ok especially if you have a bonus to fall back on. Making mistakes with the bonus means that when it comes to spending the real money, you should have got most of the beginner mistakes out of the way. We all know that from mistakes come successes, so it's not a bad thing to make them early on.

Bonus cash is excellent to have if you want to experience trading in new markets. You may have experience of dealing in stock but fancy your hand at currency. You can use your own money to do what you know and use the bonus money to experiment in a new market. The only real exclusion is tournaments; in most cases, you can't use bonuses to stake your entry fee there. However, by strategically using your free money to get the new experience you are opening yourself up to a whole new potential profit stream.

Binary options no deposit bonus

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$20 BONUS BINARY FREE NO DEPOSIT – close option

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Binary options bonus

A binary options bonus can provide you with extra money to trade with, sometimes for free with no deposit, but more often as an added percentage of whatever amount you deposit to your account (A ‘deposit match’ bonus).

Binary options brokers are always keen to attract new traders. One of the main methods for gaining new custom is to offer a bonus. These can come in many forms, from the simple deposit bonus or risk free trades, to more complex packages of training aids and hi-tech gadgets – brokers know how to entice traders, new and old.

Here we list and compare all bonuses 2021 and explain the key points to ensuring that any bonus taken is a genuine benefit and does not become a source of frustration. We explore some of the common types of bonus, and when the right time to take it might be. We also discuss some of the pitfalls, and why all that glitters, may not be gold.

Top bonuses 2021 for traders in ukraine

What are binary options trading bonuses?

A binary options bonus is an offer from a broker, designed to provide the trader with additional funds to trade with or to mitigate losses should a trade go wrong. Normally the offer is in the form of a welcome bonus, or a sign up offer as it is sometimes also called. Welcome offers are of course also an incentive for new clients to join that particular broker.

They come in a variety of forms, for example:

No deposit bonus

Deposit match

Risk free trade

Education material

Hardware or prizes

The bonuses will always come with terms and conditions. These terms are the most important aspects of comparing a bonus. A smaller ‘no strings’ bonus for example, might be much more attractive than a larger bonus that has some very restrictive terms and conditions.

Welcome bonus example

Let us take an example. The most common form of bonus is the ‘deposit match’. Here, when a new trader opens an account, their first deposit will trigger a bonus. This is normally a percentage of the deposit. So assuming the deposit was a 50% bonus deal:

A trader makes a deposit of $200

A bonus of 50% (in this case $100) would be added to their account

If the deposit match bonus figures was 100%, the same trader would get $200 in bonus funds.

Risk free trade

A risk free trade is another simple form of bonus. One attraction of the risk free bonus is that the terms are normally way less restrictive. A risk free trade gives the trader a chance to place a trade, knowing that if it loses, they do not lose any money from their account. If it wins, they keep the profits.

Some brokers will offer 3 or even 5 risk free trades, and they will all operate the same way. With more trades however, come more conditions. For example with one risk free trade, the broker is likely to pay out winnings as cash – immediately available for withdrawal. Where a broker offers more risk free trades, it becomes more likely that any winnings must be “turned over” (traded) a number of times before they can be withdrawn.

This is one of the reasons why when comparing bonuses, the terms are crucial. At the end of this page, we explore risk free trades in more detail, and explain why there is always some level of risk.

No deposit bonus

The ‘no deposit’ bonus is exactly what the name suggests – a bonus credited to an account without the need for an initial deposit. It is clearly an attractive option for a trader, but as explained above – reading the terms and conditions will be key. A no deposit bonus will generally require a very high turnover before any funds can be withdrawn, and this requirement will normally need to be met within a short space of time.

Given the terms and conditions are demanding, it becomes clear that a live account, with a ‘no deposit bonus’, will actually behave in much the same way as a demo account. The reason being, these bonus funds are unlikely to be withdrawn and are not “real money” until certain, strict, criteria have been met.

This type of bonus is also rare. It does not work that well for brokers, or traders. Recent months have seen a shift away from no deposit bonuses, into ‘risk free’ trades. This allows traders to use the live, real money platform, but place a handful of trades at no financial risk. Brokers now tend to offer either risk free trades, or deposit match bonus.

The best times to claim bonuses

The best time to claim a benefit is often not at the point of making the first deposit. With some brokers, the best course of action is to open an account with the minimum deposit – turning down any bonuses. Then after a period of trading, call the broker and negotiate a bonus directly with them, based on a larger deposit. This is particularly effective if there is a larger sum to be invested. The bigger the second deposit, the better any bonus terms will be.

If that seems too much trouble, then new traders should certainly research any potential bonus – and ensure it will work for them. Make sure any bonus conditions can be met comfortably – without having to change any trading habits. Pay specific attention to turnover requirements, and any time restrictions by which time the limits need to have been met.

Term and conditions

There are certain issues that traders should be aware of when comparing bonuses. All of these issues will normally be within the terms somewhere, so it is vital to check those. Here we will list some of the details to look out for when checking the small print of the bonus deal you have found:

Withdrawal restrictions – almost every bonus will have these. For example, are there turnover requirements to be met, and do they need to be met within a certain time? The bigger the deposit the more restrictive these will be. A $100 bonus that needs to be turned over 20 times, means $2000 worth of trading.

Is your deposit locked in? – there are forms of bonus which actually lock the initial deposit, as well as the deposit itself, so that nothing can be withdrawn until turnover requirements are met. These bonuses are thankfully rare – but put the trader at a huge advantage. Any broker using these sort of terms is best avoided entirely.

How is the bonus paid? – are bonus funds separate from your deposit? If so, this is usually better.

How are winnings paid with risk free trades? – are profits paid as cash into the account, or added as bonus funds (with their own terms and conditions to be met)

Finding the best offer

As we have covered, finding the ‘best’ binary options bonus is a case of delving into the terms and conditions. Only then can you judge if the bonus suits your trading style. A large bonus with restrictive terms could be worthless if those terms are not met without causing you to over trade. A small bonus, with few, if any, restrictions, could be a welcome boost to your trading funds. Biggest is not always best when it comes to bonuses.

Lastly, a high quality, reputable broker will make it easy for you to opt out of a bonus. Some will even allow you to cancel a bonus deal part way through. A broker pushing their bonuses on you could be seen as a red flag. If the bonus does not suit you, turn it down.

Why you may NOT want that deposit bonus

Deposit bonuses are a common feature of binary options brokers today, who use them as an attraction to get new traders to open and fund accounts. Who wouldn’t want some free money but the question is, is it really free? There are several reasons why bonuses are not as free as they seem and why you may not want to accept one.

Trade minimums – every bonus comes with a trade minimum. This a dollar amount you must reach before the bonus monies can be withdrawn from your account. The minimum is based on your original deposit and the bonus so if you deposit $2000 and get a 50% bonus the minimum will be based on $3000. On average the trading minimum will be between 20 and 30 times the total account value. We have seen some as low as 15 times and some as high as 40 or 50 times the total account value. This means that an account with a total value of $3000 will have to make trades totalling $45,000 before the bonus is yours. I like to trade 1% of my account at a time to ensure that no one trade can damage my account. In a $3,000 account that means making trades of $30 at a time, $45K divided by $30 is 1500 trades. Of course, you can make bigger trades in order to clear the minimum faster but that can also lead to catastrophic losses.

Time limits – some, but not all, deposit bonuses have a time limit. This is usually something like 30, 60 or 90 days. This means that you have to reach the trade minimum before the time limit is up before you can make a withdrawal. We do not want to imply that any of you are not able to turn $3,000 into $45,000 but consider your chances of doing that within 30 days. You might not like being forced into trading more than your budget or system allows. The time limit may be another reason to shoot for the stars, trading more often or with larger amounts than you normally would and adding risk to your portfolio.

Withdrawals – bonuses make withdrawing money from your account difficult. Some brokers, the shadier ones, will not let you withdraw any money until you meet the minimum trade limit. Brokers that do will not let you withdraw any part of the bonus or profits based on the bonus. In either case clauses in the terms will usually lead to you forfeiting the entire bonus and all profits with any withdrawal request prior to meeting the withdrawal requirements. If you trade your $3,000 account up to $10,000 or $15,000 you might want to take some out.

This broker (optionyard) says that bonuses can not be redeemed for cash value, very shady.

Free sign up bonus – A free $50 or $20 sign up bonus is not too uncommon these days. This is a “free” bonus you get when you sign up to an account and supposedly does not require a deposit. Except that it might. The only way to get the bonus could be to deposit money and then meet the bonus requirements. You may also get an additional deposit bonus on top of the sign up bonus, which means the bonus requirements could be quite high. Make sure to check what the case is with your preferred broker.

There is a reason why brokers continue to use bonuses as an incentive – they know that the average binary options trader is more likely to lose all of their money than to clear the bonus requirements. That is why the minimum requirements are so high and the time limits so short. In order to meet the minimum you will likely have to engage in risky trading behavior. Any time you are contemplating accepting a bonus be sure to read the terms of use and fully understand what it will take to clear the minimum. Like everything else in life not all brokers are the same and each will have different policies concerning the bonus and when and even if the bonus is really yours.

Bonuses are often applied to accounts automatically by the broker once they are funded so be wary of this an see if you can decline a bonus, should you want to, before you commit. In order to opt out you, the trader, are responsible for contacting their account representatives. Some brokers will also offer other bonuses from time to time so be sure to read the terms and conditions before accepting them.

The risk in “risk free” bonuses

There are hidden risks to risk free trading the average binary options trader is unaware of. Fortunately we can reveal what to look out for.

There are some obvious advantages to using the risk free trade, you won’t lose, but the fact remains there are some downsides to the equation that may make you think twice about using it. Following you will find a description of a few types of offers you may find and why they aren’t as risk “free” as advertised.

Free $50 offer or the no deposit bonus

Some brokers will give you a free $50 in order to get started trading. This sounds great and is potential way for a trader to take advantage of a broker for demo trading purposes. Of course, the $50 needs to be enough to make a trade or two.

To sweeten the deal some brokers will also let you know that it is possible to withdraw the $50 once you meet the trading minimum and volume requirements. This is not unusual in and of itself, bonuses come with terms. But beware of related “tie ins”. Minimum deposits are one requirement to unlock a withdrawal and this is true for the “no deposit bonus”. Sure you can get one. Sure you can withdraw it, but only after making a deposit. That deposit may also need to be way more than the original bonus.

Free demo or risk free trading

Some brokers offer free demos to potential clients with only an email address in return. Not something to be worried about, it’s OK for them to want to get your email in return for the free service.

What’s not OK is to advertise the free the demo and then require a deposit to get it, that’s bait and switch. The demo is free, if you deposit with us. Worse yet is that most brokers who use this tactic aren’t really giving you a demo account, they are tacking a “demo bonus” on top of your deposit and all the trimmings that go with it; volume minimums and cumbersome withdrawal requirements. We do not list brokers that operate like this, but it is worth being aware of.

Cash rebate programs

Cash rebate programs sound really nice don’t they? This usually requires a certain minimum deposit, a certain minimum maintenance balance and a trade volume. But here is what you need to know – some rebate programs give you money back only on your losses.

If you are a net loser on the month you get back some of your loss, if you are a net winner you get back nothing. The kicker is that if you are a net loser, you will have to make another deposit to maintain your balance requirement (where there is one). Some rebates don’t require a minimum balance, you have to lose all your money to get it.

Also remember that rebates are often paid as bonus funds – with their own set of terms. So they are often not that attractive after all.

The risk free trade

The absolute worst of the risk free offers is the out and out risk free trade. Some brokers will offer you risk free on your first, second and third trade. These will always come with a minimum deposit and usually an automatic bonus.

If there is no automatic bonus then the money that you would have lost turns into bonus money. Your balance is still the same, you made a risk free trade, you didn’t lose any money – or did you? The “real money” has turned into bonus funds – with terms attached about withdrawals. There is certainly some risk still involved.

Binary options bonus

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Binary options bonuses 2020

The best binary options brokers are not hard to find, and once you discover your favourites, you will also be offered the best binary options bonus types, as well. The two things are, of course, logically dependent on each other, but only a well-prepared trader can realise the full benefits of them. Don’t rush to look for the best binary options bonuses, it’s much better to read our ultimate and specially tailored guide first. Thus you will guarantee your binary options trading experience fantastic conditions to progress and possibilities to earn even larger final outcomes.

The truth behind the connection between binary options bonuses and best binary options brokers

Every trader must consider the connection between the bonuses and binary options brokers. There are many theories that discuss it, but is not always simple to arrive at a definitive conclusion. To some traders – mostly the beginners among them – the best binary options trading sites do offer the best binary options bonus types as a rule. But accepting this as an axiom is not very clever. Both things might depend on each other, but it is not mandatory to be on the same high level we are all looking for, when it comes to profitable and reliable trading activity. Indeed, all good and high quality brokers provide an excellent environment for trading with binaries – including an intuitive platform, great package of extras and conveniences, as well as fantastic bonus system types in most cases. So if you have found a nice platform to trade on, there`s also a strong possibility that it will offer good bonus types, too.

What is a binary options bonus?

Now, a few words about the meaning behind binary options bonuses in general. It is extremely important for any trader to be aware of its nature. Thus, you can use the bonus in a proper and most beneficial way. After all, let`s not forget that the binary options bonuses are one of the top factors that might increase your profits. In short, the binary options bonus is a type of a bonus that is quite similar to the rest of financial trading bonus types – including those in the forex market. The bonus is a promotion or special offer that is individually established by each particular brokerage company. Even though the binary options types are standardized – no deposit bonus, welcome bonus and etc – their amounts are customised by the individual websites. So when it comes to the best binary options bonus on the web, we consider its value, as well as the number of the types of bonus on a platform. It is also important to know that different binary options bonus types have different terms and conditions. These are particular rules as to the application of each promotion. Some of these terms and conditions also include information about the withdrawal procedure for the bonus. Make sure you have read these specifications before claiming and using the binary options bonuses.

What are the available binary options bonuses today?

As we have already mentioned, the best binary options bonuses are those with biggest values and they appear in brokers that in general provide different types of promotions. So let’s discuss these types. Find out what the available binary options bonuses are today:

Best bonus offers from binary options brokers

No deposit bonus

No deposit binary options bonus type is considered to be the most beloved and preferred one among the entire trading audience. It is a bonus that is given in a form of free money by the brokerage company. The best thing about the no deposit bonus in binary trading is that you receive this free money with no obligation to make initial deposits. The only thing you must do is to make an official registration in that particular binary options broker. This eventually means that only newcomers, but not regular customers, on a website can claim a no deposit bonus. Last, but not least, know that a no deposit binary options bonus is always a particular amount of money – ranging from $10 to $100.

Welcome / first deposit bonus

Regardless the name it is called with, this binary options bonus type requires each newcomer in a trading website to make an initial deposit. This initial deposit has always a minimum value – generally ranging from $10 to $1000 according to the type of an account you open. So once you make an official registration, open an account and make your preliminary investment, you are rewarded with welcome / first deposit bonus. It is measured in % – from 20% to 100% – and it is based on your first deposit amount.

Reload bonus / cash back bonus

Both refer to the binary options bonuses that are provided for each subsequent deposit made by a trader, who is already a customer of a broker and who has already made his first initial deposit. The essence behind the reload/ cash back binary options bonus is similar to the previous bonus type – welcome / first deposit offer.

Risk-free / cash out bonus

This bonus is not offered very often, but it is appreciated just like the best binary options bonus – no deposit. According to the risk-free / cash out bonus, a trader is offered a scheme that reduces the threat of losing too much money and increases the chance to win more. A brokerage simply covers the losses made by a trader and doubles its winnings. In most cases, this binary options bonus type is offered to newcomers that are still in their beginning and learning stage.

Demo account

We consider the demo account as a type of a bonus, too, and what is even more interesting is that it is quite comparable to the risk-free binary options bonuses. The only difference here is that no winnings are doubled, but yet the losses are entirely covered by the brokerage. The thing about the demo account is that it allows the trader to make trades in a real environment, but without investing his own money. It is a way for the trading community to practice on a trading platform. Moreover – it is an opportunity for the customer to test the binary options broker and to see if it suits his needs and preferences.

Mobile binary options bonuses

Mobile binary options bonuses are the same bonuses we have already listed, but provided for mobile customers. To stimulate the audience to trade through the mobile software version, the broker offers the same bonuses – for a second time – to the trader once he becomes a mobile client.

Refer a friend

This is also an excellent binary options bonus type and in many websites you can find it as a special program, not a promotion. Though, refer a friend offers you a kind of a bonus, too – either as a particular value, or as % of the first made deposit by the referred friend. To receive such a bonus, simply refer a friend to the brokerage website you are trading in. Note that most websites do reward both of the customers – the referral and the referred one.

Special binary options bonuses for loyal customers

You will have to become an advanced trader and a regular customer of a broker to receive this bonus. It can be a specially tailored and individualized program with many extras, conveniences of privileges given to a loyal trader. Keep in mind that binary options brokers sometimes do not announce this bonus directly on their websites, and you will have to individually claim for it, when you reach a certain experience level.

How to find the best binary options bonus?

Follow these simple and quick steps to reach the best binary options bonus on the web! Have patience and remember that you will need some solid experience before becoming capable to find the best promotions:

Use the search engine in your browser – simply, insert the keywords “best binary options bonus” and see the results.

Undertake research via the web by reading binary options trading forums and groups in the social webs.

Ask a friend or get recommended by a person who is more experienced in binary options trading.

Read our detailed binary options reviews.

Good luck with your search of the best binary options bonus types ever!

Binary calculator

Use the following calculators to perform the addition, subtraction, multiplication, or division of two binary values, as well as convert binary values to decimal values, and vice versa.

Binary calculation—add, subtract, multiply, or divide

Convert binary value to decimal value

Convert decimal value to binary value

The binary system is a numerical system that functions virtually identically to the decimal number system that people are likely more familiar with. While the decimal number system uses the number 10 as its base, the binary system uses 2. Furthermore, although the decimal system uses the digits 0 through 9, the binary system uses only 0 and 1, and each digit is referred to as a bit. Apart from these differences, operations such as addition, subtraction, multiplication, and division are all computed following the same rules as the decimal system.

Almost all modern technology and computers use the binary system due to its ease of implementation in digital circuitry using logic gates. It is much simpler to design hardware that only needs to detect two states, on and off (or true/false, present/absent, etc.). Using a decimal system would require hardware that can detect 10 states for the digits 0 through 9, and is more complicated.

Below are some typical conversions between binary and decimal values:

Binary/decimal conversion

Decimal	binary
0	0
1	1
2	10
3	11
4	100
7	111
8	1000
10	1010
16	10000
20	10100

While working with binary may initially seem confusing, understanding that each binary place value represents 2 n , just as each decimal place represents 10 n , should help clarify. Take the number 8 for example. In the decimal number system, 8 is positioned in the first decimal place left of the decimal point, signifying the 10 0 place. Essentially this means:

Using the number 18 for comparison:

(1 × 10 1 ) + (8 × 10 0 ) = 10 + 8 = 18

In binary, 8 is represented as 1000. Reading from right to left, the first 0 represents 2 0 , the second 2 1 , the third 2 2 , and the fourth 2 3 ; just like the decimal system, except with a base of 2 rather than 10. Since 2 3 = 8, a 1 is entered in its position yielding 1000. Using 18, or 10010 as an example:

18 = 16 + 2 = 2 4 + 2 1
10010 = (1 × 2 4 ) + (0 × 2 3 ) + (0 × 2 2 ) + (1 × 2 1 ) + (0 × 2 0 ) = 18

The step by step process to convert from the decimal to the binary system is:

Find the largest power of 2 that lies within the given number

Subtract that value from the given number

Find the largest power of 2 within the remainder found in step 2

Repeat until there is no remainder

Enter a 1 for each binary place value that was found, and a 0 for the rest

Using the target of 18 again as an example, below is another way to visualize this:

2 n	2 4	2 3	2 2	2 1	2 0
instances within 18	1	0	0	1	0
target: 18	18 - 16 = 2	→		2 - 2 = 0

Converting from the binary to the decimal system is simpler. Determine all of the place values where 1 occurs, and find the sum of the values.

EX: 10111 = (1 × 2 4 ) + (0 × 2 3 ) + (1 × 2 2 ) + (1 × 2 1 ) + (1 × 2 0 ) = 23

2 4	2 3	2 2	2 1	2 0
1	0	1	1	1
16	0	4	2	1

Binary addition

Binary addition follows the same rules as addition in the decimal system except that rather than carrying a 1 over when the values added equal 10, carry over occurs when the result of addition equals 2. Refer to the example below for clarification.

Note that in the binary system:

1 0	1 1	1 1	1 0	1
+	1	0	1	1	1
=	1	0	0	1	0	0

The only real difference between binary and decimal addition is that the value 2 in the binary system is the equivalent of 10 in the decimal system. Note that the superscripted 1's represent digits that are carried over. A common mistake to watch out for when conducting binary addition is in the case where 1 + 1 = 0 also has a 1 carried over from the previous column to its right. The value at the bottom should then be 1 from the carried over 1 rather than 0. This can be observed in the third column from the right in the above example.

Binary subtraction

Similarly to binary addition, there is little difference between binary and decimal subtraction except those that arise from using only the digits 0 and 1. Borrowing occurs in any instance where the number that is subtracted is larger than the number it is being subtracted from. In binary subtraction, the only case where borrowing is necessary is when 1 is subtracted from 0. When this occurs, the 0 in the borrowing column essentially becomes "2" (changing the 0-1 into 2-1 = 1) while reducing the 1 in the column being borrowed from by 1. If the following column is also 0, borrowing will have to occur from each subsequent column until a column with a value of 1 can be reduced to 0. Refer to the example below for clarification.

Note that in the binary system:

Note that the superscripts displayed are the changes that occur to each bit when borrowing. The borrowing column essentially obtains 2 from borrowing, and the column that is borrowed from is reduced by 1.

Binary multiplication

Binary multiplication is arguably simpler than its decimal counterpart. Since the only values used are 0 and 1, the results that must be added are either the same as the first term, or 0. Note that in each subsequent row, placeholder 0's need to be added, and the value shifted to the left, just like in decimal multiplication. The complexity in binary multiplication arises from tedious binary addition dependent on how many bits are in each term. Refer to the example below for clarification.

Note that in the binary system:

1	0	1	1	1
×	1	1
1	0	1	1	1
+	1	0	1	1	1	0
=	1	0	0	0	1	0	1

As can be seen in the example above, the process of binary multiplication is the same as it is in decimal multiplication. Note that the 0 placeholder is written in the second line. Typically the 0 placeholder is not visually present in decimal multiplication. While the same can be done in this example (with the 0 placeholder being assumed rather than explicit), it is included in this example because the 0 is relevant for any binary addition / subtraction calculator, like the one provided on this page. Without the 0 being shown, it would be possible to make the mistake of excluding the 0 when adding the binary values displayed above. Note again that in the binary system, any 0 to the right of a 1 is relevant, while any 0 to the left of the last 1 in the value is not.

Binary division

The process of binary division is similar to long division in the decimal system. The dividend is still divided by the divisor in the same manner, with the only significant difference being the use of binary rather than decimal subtraction. Note that a good understanding of binary subtraction is important for conducting binary division. Refer to the example below, as well as to the binary subtraction section for clarification.

How does the binary MLM plan works?

The binary MLM compensation plan is the most popular network marketing plan with rapid growth opportunities. The two-legged plan balances business and distributor growth by encouraging teamwork with attractive compensations. Network marketing companies with binary compensation plan use a binary MLM software to effectively manage and automate their processes and operations. This software can automate marketing, prospecting, recruiting, training, and payout processes successfully.

What is a binary MLM plan?

The binary MLM plan is defined as a compensation plan that consists of two legs (left & right) or subtrees under every distributor. Upon adding subtrees, a binary tree gets formed. New members joining after them are spilled over to the downlines or next business level.

This process continues to unlimited levels or depths. Also, the plan is easy to understand which helps distributors attract more people to the network. Thus the recruitment or sales increase which also improves growth and business opportunities.

Most of the popular companies choose this basic plan with precise planning and proper strategy.

Well, MLM companies that run with the binary compensation plan needs proper tracking. An intelligent multi-level marketing software helps companies manage, control, and organize their business easily.

How does the binary MLM plan works?

Binary MLM plan is a network marketing compensation strategy used by many top performing MLM companies. The new members sponsored by distributors are added either on the left or right leg. Upon adding two new members on either side of the subtree, a binary tree gets formed.

All the new members referred after forming a binary tree gets spilled to the downlines.

Note: distributors become a part of the binary plan by purchasing an enrollment package. The enrollment package here means either a service or a list of products. The distributor buys the package and becomes a part of the binary MLM company.

Let’s explain with an example,

Case 1: distributor X sponsors A, and distributor A then sponsors a new member B. B gets added to the left position or leg of A on the binary tree.

Distributor B is the new member sponsored by A and he is the direct downline member. Distributor A then adds another member C to his right leg.

The binary tree of distributor A is formed and he gets commissions. Don’t forget one important factor, distributor C was added to the right because he chose that position as it was vacant. Here, distributor A is the ‘sponsor’ as well as the ‘parent’ of B & C.

Case 2: distributor A is sponsored by distributor X. Distributor A then sponsors a new member, B. However, B wasn’t added on the direct left leg because it was already acquired by distributor Y sponsored by X.

Here, distributor Y got spilled over to the next vacant position i.E. On the left leg of A. The sponsor of Y is X but the parent is A.

Note: the sponsor is the person who referred a member to the network whereas the parent is the person to whom a member comes under as downline.

So, this gives a clear picture, the downlines under a node might be from his/her efforts known as direct downlines or from the uplines efforts or referrals. Distributor B was added on the right leg. Now, the binary tree of distributor A is formed.

Yet another information we receive from here is that a binary tree may form based on their own efforts/referrals or from the members spilled over from the uplines.

Note: A binary tree never gets completed, in fact, it’s infinite. However, a binary tree is formed once the left and the right leg gets filled.

A question might have arisen in your mind now - can a binary tree get formed from the uplines efforts alone? Let us cover that part covered with the same example.

Case 3: distributor X sponsors two new members A & X1. They are added on the left and right leg as they were vacant. Distributor A then sponsors a new member B to the direct right leg. Meanwhile, distributor X has sponsored Y & Z. The binary tree looks now like,

See how the new members are added here, Y got added on the left position below A but Z got added below right to X1. The distributor X can add Y on the left leg under A but not on the right leg. To understand the reason, one should know the right and left leg placing or filling exactly.

The left and the right legs of X are depicted in the above picture. The position occupied by B is the right leg of A but not X. The right leg of X always spilled over the right positions below X1.

Compensations are received based on sales volume achieved by the distributor as well as a percentage of sales volume from the downlines. The criteria are set by binary plan companies.

Spillover can occur even if the binary tree is not truly formed. This is yet another scenario to consider.

Case 4: consider a scenario, where distributor A sponsors two new members, B & C, only to the left legs. Now, B gets added on the direct left leg and C gets added to the direct left of B as spillover.

Case 5: another type of spillover occurs when the direct left and right legs get complete and new members are placed to the next levels. In the above case, Y and Z are examples of normal spillover.

Distributor X sponsored A & X1, by forming a binary tree. Afterward, the next members get automatically spilled over to the next positions. This is a normal spillover.

Binary spillover preferences

When a distributor completes the first level of a binary tree by sponsoring two members, then the next members will automatically spill over to the next available level. However, the spillover preferences vary from one binary MLM company to another.

Types of spill:

Extreme left or extreme right spilling: the spillover preferences can be set either to the left or right leg. Most companies choose this option to make distributors active. They will get commissions only once they balance the tree by making sales on the pair leg.

This promotes group effort and gains good sales volume.

Weaker side/pay leg spilling: new members are added to the weak leg, it may be left or right depending on the lowest sales volume.

This preference helps business admin to balance the sales volume as the new members will add more sales.

Balanced-spilling: this spilling preference balances the tree in advance in a 1:1 ratio. The members will be added on the basis of left-right combinations.

Multi-center tree/multiple position spilling: A premium joining package might provide a distributor with multiple business centers/member positions in a binary tree. The first three positions will complete a tree and the rest positions are spilled over to the next immediate positions. This type of spilling option is provided if the joining package from binary companies offer multiple positions in the binary tree.

Commission calculation methods

1. Weak leg based binary commissions:

Binary commissions are paid based on the leg with the least volume (weak leg).

Weak leg (sales leg): the leg with low sales is the weak leg on a binary tree. Commissions are calculated based on this weak leg. It can be either left or right, based on sales volume (SV).

Strong leg (profit leg): the leg in the binary tree with higher sales volume is known as a strong leg.

Example: the downlines of distributor A are B, C, D, E, and F. Here, B, D, and E are in his left leg whereas C & F are in his right leg. The left leg made a sales volume (SV) of 500 and the right leg of 1100 SV.

SV is less on the left leg, hence it is the ‘weak leg’ and the right leg with higher SV is the ‘strong leg’.

Bonus calculations are made based on this weak leg i.E. 500 SV. So, if the bonus is set to 10% then the bonus will be 10% of 500 SV which is equal to $50.

The rest 600 SV on the right leg after the bonus calculation is carried forward to the next binary cycle.

2. Sales ratio based binary commissions:

Some companies set commission payout criteria based on sales ratio or pair ratio. Most common pairing ratios or sales ratios are,

1:1 sales ratio

1:2 or 2:1 ratio

2:3 or 3:2 ratio

Note: commissions are paid or the binary payout cycle is set on a daily, weekly, monthly, or periodic basis.

1:1 sales ratio: commissions paid once the sales volume of the left and right leg matches a 1:1 ratio.

Example: distributor A sponsors two distributors X & Y and adds to the binary tree. The commission payment criteria are set to a 1:1 ratio. Distributors get $10 for achieving every 1:1 pair.

Case 1: distributor X achieves 100 sales volume (SV) and distributor Y achieves 120 sales volume (SV).

Both legs have achieved 1:1 ratio (100 SV on both legs) hence distributor A gets $10 as commission. The 20SV on the right leg is carried forward to the next binary payout cycle.

Note: carry forward option for unpaid sales volume is applicable for both left and right legs. Also, some binary companies may not welcome carry forward option by flushing the unpaid sales volume.

Case 2: distributor X achieves 300 SV and distributor Y achieves 350 SV.

Both legs have achieved a 1:1 ratio hence the distributor A (sponsor) gets $30 as commissions. Here, three 1:1 pairs are achieved, hence 3*($10)=$30 commission.

350/3=3 pairs (50 SV carry forward)

The rest 50SV made by distributor Y gets carried forward to the next binary payout cycle.

1:2 or 2:1 plan: commissions paid once the left and the right leg achieves 1:2 or 2:1 sales volume.

Example: distributor A sponsors two distributors X & Y and added to the binary tree. The commission payment criteria are set to a 1:2 or 2:1 ratio. Distributors get $10 for each pair.

Case 1: distributor X achieves 100 sales volume (SV) and distributor Y achieves 220 sales volume (SV).

The binary tree has achieved a 1:2 ratio hence distributor A gets $10 as commission. The 20SV on the right leg is carried forward to the next binary payout cycle.

Case 2: distributor X achieves 200 sales volume (SV) and distributor Y achieves 100 sales volume (SV).

The binary tree has achieved a 2:1 ratio hence distributor A gets $10 as commission.

Case 3: distributor X achieves 300 sales volume (SV) and distributor Y achieves 600 sales volume (SV).

The binary tree has achieved a 1:2 ratio hence the distributor A (sponsor) gets $30 as commissions. Here three 1:2 pairs are achieved, so the distributor gets 3*($10)=$30 commission.

300:600 SV - three [1:2] pair, to be precise, 3 * [100:200]

Case 4: distributor X achieves 600 sales volume (SV) and distributor Y achieves 300 sales volume (SV).

The binary tree has achieved a 2:1 ratio hence the distributor A (sponsor) gets $30 as commissions. Here three 2:1 pairs are achieved so 3*($10)=$30 commission.

600:300 SV - three [2:1] pairs.

2:3 or 3:2 plan: commissions paid once the left and the right leg achieves 2:3 or 3:2 sales volume.

Example: distributor A sponsors two distributors X & Y and added to the binary tree. The commission payment criteria are set to a 2:3 or 3:2 ratio. Distributors get $10 for each pair.

Case 1: distributor X achieves 200 sales volume (SV) and distributor Y achieves 320 sales volume (SV).

The legs have achieved a 2:3 ratio hence distributor A gets $10 as commission. The 20SV on the right leg is carried forward to the next binary payout cycle.

Case 2: distributor X achieves 300 sales volume (SV) and distributor Y achieves 200 sales volume (SV).

The legs have achieved a 3:2 ratio hence distributor A gets $10 as commission. The binary payout cycle is paid either daily, weekly, or monthly based on company rules.

Case 3: distributor X achieves 620 sales volume (SV) and distributor Y achieves 900 sales volume (SV).

The binary tree has achieved a 2:3 ratio hence the distributor A (sponsor) gets $30 as commissions. Here three 2:3 pairs are achieved, hence 3*($10)=$30 commission.

620:900 SV - three [2:3] pairs

The extra 20 SV made by the left leg is carried forward to the next payout.

Case 4: distributor X achieves 900 sales volume (SV) and distributor Y achieves 600 sales volume (SV).

Both legs have achieved a 3:2 ratio hence the distributor A (sponsor) gets $30 as commissions. Here three 3:2 pairs are achieved, hence 3*($10)=$30 commission.

900:600 SV - three [3:2] pairs.

Note: the ratios can vary from company to company, they may choose 1:3 or 1:4 or any other custom pair as per the requirements.

Binary capping:

MLM companies usually set a capping value for compensations to assure financial stability. Overflow of payout in terms of compensations can diminish the turnover generated by the companies.

The capping will be based on either sales volume (SV) or commissions.

Sales volume-based binary capping: binary companies set capping value based on the sales volume achieved by distributors, compared with the enrollment package price.

Example: suppose distributor A makes a sales volume of 200 from his left leg and 300 on the right leg. The company has set a weekly binary capping of 100 SV.

The commissions will be calculated only for this capping value. The extra SV of 100 from the weak leg and 200 on the strong leg will be flushed out. This value won’t be considered for the next binary cycle.

The capping can be set as per the company’s preference i.E.Daily, weekly or monthly capping.

Commission-based binary capping: binary companies set capping based on commissions earned or achieved by the distributors, compared with the enrollment package price.

Example: if distributor X joins the binary MLM company with a $1000 package, the company sets a capping value of $10000 as commissions. The distributor won’t receive any commissions more than this value ($10000). This capping can be set based on a daily, weekly, or monthly basis.

Compensations in binary plan

Compensations are received based on the distributor performance or by achieving the criteria set by binary plan companies.

A percentage of bonus paid based on the weak leg sales volume.

Example: in a binary network, the left leg made a sales volume of $100 and the right leg of $500.

10% of weak leg volume ($100) is provided as a binary bonus i.E. Here $10.

The binary bonus value (percentage) is set by the binary compensation companies.

Qualified distributors receive a bonus if they achieve balanced sales volume in each leg.

Example: binary network has made 3300 sales volume ‘on the left leg’ and 3333 SV ‘on the right leg’.

If the pairing bonus is set to 1:1 ratio, 10% of every 100 sales volume then,

In monthly binary payout cycle, the distributor will receive 33*10=$330 (completed 100 SV pairs are 33).

The remaining sales volume is carry forward to the next binary payout cycle date (33SV in the right leg).

For instant pairing binary payout cycle - pairing bonus will be provided once the legs complete the 1:1 bonus ratio (100 SV in left and right legs).

The sponsor receives a percentage of bonuses achieved by the downline members.

Example: distributor X sponsors Y & Z and added them in the binary tree as direct downlines.

Later on, Y sponsored two members and earned a sponsor bonus of $10.

X who is the sponsor of Y receives $1 as a matching bonus (matching bonus is set to 10% of downline member bonus).

Bonus received for referring new members into the binary tree.

Example: the distributor refers two members and added them to the referral tree. Now the distributor receives a direct referral bonus for sponsoring two members in the binary tree.

They joined the system by choosing a $100 package.

Here the distributor gets 10% of the package price for both new members i.E. (10% of $100) which is $10.

In total, the distributor gets $20 ($10 *2)as a direct referral bonus.

*the direct referral bonus criteria are set based on the company's marketing regulations. This varies from company to company.

Distributors receive a fixed amount or percentage of the investment they made in the binary business.

Example: A distributor joins the binary network and invests $20,000 for their binary system. During daily/weekly/monthly they get a percentage of their investment as a return. A return of investment (ROI) rate is set by the business admin and subject to vary.

Most of the MLM companies develop their own custom bonuses to motivate and attract more people into the network.

Advantages/benefits of binary MLM plan

Unlimited depth: binary plan allows distributors to add members to unlimited levels and earn a high income.

Group work: with left leg or right spilling preferences, the distributors become active as they have to balance the tree for compensations.

Quick growth: binary plan offers quick business growth opportunities.

Carry forward: unpaid sales volume (SV) after present binary payout cycle is carry forward for the next binary payout cycle.

Spillover: new members after completing the first level is spilled over to the unlimited downline levels.

Hybrid binary plan

A binary plan can be modified by combining with other compensation plans. Why should an MLM company go for a hybrid plan?

MLM company strategies vary and they might even have their own custom plan to add in the existing binary plan. The plans are chosen by analyzing the present marketing situations. With the best marketing plan, companies can become popular and beneficial in productivity.

Other terminologies in binary plan

Inside leg placement: inside leg placement is used to balance the legs in the binary tree. Distributor will add new members to the weak leg to balance the sales volume and active participation is assured.

Cycle point: A minimum sales volume is set for commission payment by binary companies. The pay leg must meet this volume or else the commission won’t be commenced until it meets the cycle point.

Individual volume threshold: A sales volume threshold is set to make sure every distributor contributes to the binary business.

Leg flush: MLM companies can flush out both weak and strong leg sales or reset sales volume to zero

Learn more MLM terms from MLM glossary!

Binary MLM calculator

Yes, the binary plan has been popular since the early days and the calculations were made manually. However, a binary system calculation with many networkers is a clutter-job. The emergence of binary calculators or simulators resolved this difficulty.

By providing the necessary input on the binary calculator like the package details, compensations, and other expenses, an output can be simulated.

Popular companies using binary compensation plan

#	company	revenue(2018)	revenue(2017)	growth rate
1	herbalife	4.9	4.43	11%
2	natura cosmeticos	3.37	3.09	9%
3	jeunesse	1.46	1.30	12%
4	sunhope	1.4	1.54	-9%
5	ambit energy	1.3	1.15	13%
6	USANA	1.189	1.047	14%
7	atomy america inc	1.150	1	15%
8	lyconet	1	0.8	25%
9	isagenix	0.89	0.958	-7%
10	market america	0.837	0.82	2%
11	quanjian	0.7	0.786	-11%
12	it works! Global	0.6	0.645	-7%
13	hinode cosméticos	0.528	0.528	0%
14	plexus worldwide	0.527	0.562	-6%
15	optavia - medifast	0.501	0.301	66%
16	younique	0.4	0.45	-11%
17	neora	0.4	0.45	-11%
18	worldventures	0.377	0.85	-56%
19	stella & dot	0.3	0.31	-3%
20	alliance in motion	0.238	0.22	8%
21	naturally plus	0.236	0.111	113%
22	alphay international	0.225	0.252	-11%

Upcoming trends in binary plan

The above popular companies list is extracted from a study conducted by our research team. Based on this study, MLM companies prefer binary over other plans and the reason is to make business more productive & active.

There is an observable trend found after the analysis - “hybrid plan”. Many binary companies use a hybrid version of the other compensation plans in their business model.

Unique marketing strategies with the existing benefits of the binary plan make the best combo. This marketing strategy might have created a trendline and this trend will explore new opportunities in the near future.

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Formula menghitung bonus pasangan sistem biner – binary plan

Menghitung banyaknya pasangan pada sistem MLM biner itu susah-sudah mudah. Tetapi banyaknya pasangan sangat penting dalam binary plan MLM. Bagi anggota bonus ini menentukan pendapatan yang mereka peroleh. Sedangkan bagi perusahaan menentukan berapa bonus yang harus dibayarkan.

Paman APIQ berbagi dua jenis rumus atau formula untuk menghitung sistem biner MLM. Yang pertama adalah formula rekursif yang menghitungnya adalah bertahap dari level awal sampai level yang diinginkan. Keuntungan rumus ini adalah mudah dipahami. Komputer juga mudah melakukan perhitungan ini.

Formula kedua adalah dengan formula eksplisit. Rumus ini akan dapat menunjukkan kita banyaknya bonus pasangan yang terjadi pada level tertentu secara langsung.

Mari kita mulai dengan formula rekursif yang lebih mudah kita pahami.

Untuk level 0 ==> B(0) = 0

Hanya ada anda maka tidak ada bonus pasangan yang terjadi maka banyak bonus pasangan = B(0) = 0.

Untuk level 1 ==> B(1) = 2 x B(0) + (2^1)/2

Bila kita lihat dari gambar jelas hanya ada satu bonus pasangan yaitu milik anda yaitu ketika A berpasangan dengan B.

Untuk level 2 ==> B(2) = 2 x B(1) + (2^2)/2

Dengan bergabungnya 4 orang C, D dan E, F maka A dan B berperilaku seperti B(1). Sedangkan anda sendiri akan mendapat bonus pasangan sebanyak 4 orang dibagi 2 = 4/2. Jadi total bonus pasangan = 4.

Untuk level 3 ==> B(3) = 2 x B(2) + (2^3)/2

Dengan bergabungnya 8 orang maka A dan B berperilaku seperti B(2). Sedangkan anda mendapat tambahan bonus pasangan sebanyak 8/2 = 4. Jadi totalnya = 12.

Rumus rekursif di atas dapat kita lanjutkan sampai level n berapa pun. Berikut adalah beberapa contoh lanjutannya.

Kita dapat melihat dengan jelas bahwa pertambahan bonus pasangan tumbuh dengan sangat cepat melebihi pertumbuhan anggota sistem biner. Hal ini dapat mengakibatkan sistem MLM biner menjadi besar pasak dari pada tiang yang akhirnya ambruk, jebol, atau kolaps.

Pengamatan dan pengalaman menunjukkan memang banyak MLM biner yang tidak berumur panjang. Salah satu penyebabnya adalah kesalahan menghitung bonus pasangan di atas. Mereka sering mengira bahwa sistem flushing atau flush out akan mengamankan sistem biner. Kenyataannya tidak akan berhasil.

Cara paling aman untuk menyelamatkan sistem biner adalah dengan pembatasan maksimum pembayaran bonus pasangan. Batas atas ini sering disebut dengan CAP. Hanya batas CAP inilah yang dibayarkan oleh perusahaan. Bagaimana cara membayarkan CAP dapat diatur prosedur teknisnya.

Cara kedua adalah menghitung dengan formula eksplisit = langsung

B(0) = 0
B(1) = 1 x 2^(1-1) = 1
B(2) = 2 x 2^(2-1) = 4

Dari sini sangat jelas pertumbuhan bonus pasangan jauh lebih cepat dari pertumbuhan anggota MLM sistem biner. Kita dengan mudah membandingkan dengan pertumbuhan anggota,

N = 10 ==> B/A = 10/2 = 5

Maksudnya banyaknya pertambahan bonus pasangan 5 kali lipat dari pertambahan anggota.

Misal untuk n = 40 perusahaan harus membayar bonus pasangan sebanyak 20 kali lipat dari anggota yang masuk. Perusahaan MLM semacam ini pasti akan hancur.

Asumsikan perusahaan dapat pemasukan dari anggota baru A = 500 juta rupiah. Dan bonus pasangan adalah 10% dari investasi anggota baru maka total bonus pasangan yang harus dibayarkan adalah,

500 juta x 10% x 20 = 1.000 juta = 1 milyard.

Perusahaan jadi bangkrut! Dapat uang masuk 500 juta harus keluar bonus 1 milyard.

Kesimpulannya anda harus hati-hati dengan MLM sistem biner. Ketika sistem biner dicurigai sebagai skema ponzi atau piramid yang merugikan anggota yang belakangan masuk ternyata malah lebih sulit dari itu. Sistem biner mendekati titik yang akan menghancurkan diri sendiri ketika ukuran makin membesar.

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