If you are comparing various binary options brokers with one another, you may have noticed one thing. This is that many of them use bonuses as a sales tactic.
What Do Binary Options Bonuses Really Mean for You?
Now, these bonuses vary from one another but they do certain things in common. For instance, there is no denying that they all appear to be quite alluring. It can be quite easy to want to join a binary options broker that is offering an incredibly generous bonus. Nonetheless, you need to ask yourself the question what do binary options bonuses really mean for you? This article tackles the relevant elements for you:
Types of Bonuses
Now, the bonuses themselves can come in different forms. This typically depends on what a particular broker is willing to offer in exchange for your registration. One of the most common types is the welcome bonus. You receive this when you first sign up with the broker. It could be in the form of money to trade with or just an amount added to your account. This bonus is no longer applicable once you have become a regular trader with that broker.
Just as popular is the deposit bonus. This is more of a continuous reward. Each time you deposit a certain amount of money in your account, the broker will provide you with a percentage of money. The benefit of this, as you can imagine, is that you get to continue receiving additional money.
Then you have the risk free trading bonus. This is not a tactic that is widely adopted. Even if it is, it is usually reserved for account holders with high deposit minimums. Nonetheless, it is an enticing offer as it allows you to make a certain amount of trades completely risk free. This means that even if the trade ends up out of the money, you still get all of your money back.
There are some brokers that allow you to register with them for free – no deposit required. Instead, you can place the money into your account only when you wish to start trading. On occasion, a broker will provide you with an incentive if you can prove that you have referred another trader to that site.
The Hidden Details
What many traders fail to realize is that every bonus has its own set of terms and conditions. Essentially, they all come with a catch of their own. Now these special circumstances depend on the broker that you are signing up with.
A shared trait, however, is that you are not simply allowed to withdraw the bonus whenever you feel like it. You typically have to conduct a certain number of trades and have a specific amount of money in your account before you can withdraw this money. On certain occasions, you may not be able to withdraw the money at all. Instead, you may be required to use it to place trades with.
It is quite common to find a set of terms and conditions just for the bonuses. It is important to thoroughly examine and understand all of the strings that may come attached with the bonus. This is the best way to avoid any confusion or any unpleasantness later on.
Should You Take the Bonus?
One thing that you need to understand is that you are not obligated to agree to bonus. If you wish to, you can waive the bonus. Now, it is completely up to you if you want to do this. You will need to weigh the pros and cons involved with such a decision. It also depends on the type of bonus that is being offered and the restrictions that places on you.
This should help you to understand what binary options really mean for you. As a result, you should be better equipped to determine whether it is right for you or not.