Binary Options Bonus Explained
As you start to trade in binary options, one of the investment aspects that might be intriguing to you is the thought of a binary options bonus. Many of the best binary options brokers in the business offer significant bonuses, not only to new traders, but also as an incentive to existing clients. While these binary options bonuses can be a great thing for investors, there are also some factors that traders need to be aware of when it comes to taking bonus funds.
Binary options bonuses are just one of the few ways that brokers can make a difference in the style and profit of your trades. However, to make the most of the binary options bonus that you might receive, you’ll want to make sure that you understand the specific terms and conditions that apply to the trades that you perform. Even the country that a trader or a broker operates in can affect the regulations that apply to any given transaction.
Once you’ve decided on the brokerage service that will be the best fit for your specific investment style and needs, you’ll want to start to explore the ways that you can maximize your profits from taking advantage of the features and benefits that your broker offers, include any applicable binary options bonus.
Imagine that you create your first deposit for a grand total of $1,000. When the broker applies a 50% bonus, your total in the account will be $1,500. Once this happens, there are several things that you’ll want to keep in mind:
Binary options bonus rates are usually negotiable. Even if your broker markets a certain rate, it never hurts to ask for a higher percentage. In some cases, the broker will be able to match percentages offered by other providers in order to keep you as a client. You’ll need to note that any money that is received into the account as a bonus cannot be withdrawn, only applied to your trades, at least until you’ve generated enough profit. On average, a broker will want you to have at least 15 times more than your bonus into the account from trades before you can take out the original bonus. In this instance, a $500 bonus would require trades totaling $7,500 before withdrawal would be possible.
It’s not always easy to meet these kinds of limits on trade volumes, but stick with it and you’ll be able to get there eventually. You can also watch your bonus to deposit ratios, which can help you to meet the requirements for volume trades over time.
Watch out for any terms or conditions that may apply from your broker. Many brokerage services have a cap on the amount of bonus funds that you can receive. This can serve to protect both the broker and the trader. From the side of the broker, these caps help them to weed out people who are just seeking to take advantage of bonuses, keeping the profits of the general clients more secure. From the side of the trader, there is more control, as the investor may choose to decline the bonus or only take a small part of it. If you are concerned about meeting trade volumes, you can always take a partial bonus until you are confident in your ability to take full advantage of the system.
When carefully considered, a binary options bonus can be a very helpful tool for a binary options trader. This is one of the great features that a binary options broker can use to add value to their platform and services, enticing investors to make trades in partnership with them.