Binary Options Bonus
Binary options are a form of financial trading which have a high payout percentage for successful trades.
Payouts generally range from 70% to 85%, depending on the kind of trade the trader undertakes and the broker on whose platform the binary options trade was executed.
This makes it a desirable market to trade. This is also unlike the forex market where unfavourable market conditions could cause a trader to close a trade manually even with only a few pips profit or at breakeven point, thus reducing the payout.
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More Binary Option Bonuses
What are Binary Options Trading Bonuses?
One way of capitalizing on this phenomenon is by utilizing the binary options bonuses that have now become the norm among binary options brokers. Prior to 2006 in other markets such as the forex market, the concept of giving trading bonuses to clients was unheard of. But as competition for traders got stiffer, a few brokers used the concept to attract clients, and since then, the phenomenon has caught on even in other markets. This is why many binary options brokers now offer binary options bonuses for trader who are opening an account for the first time.
Now let us understand the concept of awarding binary options bonuses. Times are hard and it is a hard sell asking many retail traders to come up with up account opening balances of up to $1,000. By offering binary options bonuses in various degrees, brokers give traders the ability to dramatically step up their ability to use money they would not have ordinarily had access to, to place leveraged trades in the binary options market.
Let us take an example. Most binary options brokers only allow trades from $50 upwards. If a trader has only $500, the maximum number of trades he can make is 10 trades, if the trading profits are discounted. However, if he is able to find a broker who can match his equity contribution by 100%, this increased the number of trades he can make at $50 from 10 to 20. Furthermore, he can significantly increase the amount of money staked in a trade to increase his payouts.
Now bonuses should not be seen as an opportunity to get free money that can be withdrawn at any time, as binary options bonuses are not free. The trader has to generate trading commissions equivalent to, or even greater than the bonus granted by the broker to qualify to be able to withdraw them. In other words, a trader is not allowed to just withdraw a bonus once it is granted, as such bonuses are strictly trading bonuses. It then behoves the trader to use the bonuses carefully otherwise he could find himself on the losing end of the market.
The Best Times to Claim Binary Options Bonuses
What are the best times to get bonuses? Binary options bonuses are usually given when a trader opens and funds a trading account for the first time. Other times when a trader can get bonuses are during times of extreme market volatility when brokers want to capture new clients by presenting how volatility periods can generate trading profits.
In order to get the best of trading bonuses, traders should take time to study the terms and conditions under which binary options bonuses are issued. They should also study how they can use trades to cover the bonuses so that they not only make money from profiting from the trades, but also use the commissions from such successful trades to knock off the bonus amount so the bonuses can become eligible for withdrawal.
Virtually every binary options broker issues bonuses, ranging from 35% to even 100%. It is preferable to get binary options bonuses that are about 50% of account size. This puts the controlling equity in the hands of the trader. Many scam brokers use 100% bonuses to lure traders. There have been many cases of brokers running off with traders’ funds after luring them with 100% bonuses. But while not insinuating that all brokers who offer 100% binary options bonuses are scam brokers, it is wisdom to use brokers who are regulated and still offer reasonable bonuses so as not to get into such complications when withdrawing your trading profits.
Binary options bonuses are there for your benefit. Use them, but use them very wisely.