The binary options trading world continues to expand in popularity as more people become aware of it’s simplified nature of placing wagers on the market. As a result of the increase in popularity, traders have found ways to entice new clients to their care. These methods of enticement include traditional techniques, such as waving fees or offering a limited number of free transactions.
Bonuses for traders of stocks and bonds used to be unheard of. As stocks and bonds soared over the past twenty years, so did the number of bonuses offered to clients as a promotional tool. Binary options have slowly worked their way into the bonus market.
What are binary options bonuses?
Binary options brokers are offering bonuses to investors and clients to work with a particular trader or firm. These bonuses vary based on the firm, the trader, the client, the investment amount, and the language of the binary option. There are some common themes found within binary options bonuses, however.
A binary option bonus offered is to add money to an investment account from the start. Often these bonuses are 25-to-30 percent of the investment amount. For example, a 30 percent binary option bonus on a $1,000 investment would be an increase immediately of $300 to the account.
A word of caution when investing in any market and with any firm. Ensure the company is reputable and does not have complaints with the SEC or state governing agencies. Scams persist throughout the world of finance and customers should always perform due diligence before investing their money with anyone.
What are binary options?
A binary option is a simple wage on the future value of a stock. It’s considered an all-or-none proposition between the parties. An investor picks a stock and price the stock is believed to be at on a future date.
For example, Dave picks NOPQ’s stock price to be above $100 on Jan 1, 2014. If NOPQ’s stock price is at or above $100, Dave wins the wager and receives a payout agreed upon at the time of the wager. If NOPQ’s stock is below $100, Dave loses the wager and his investment.
Binary options have gained popularity amongst investors thanks to being able to accurately determine gains or losses in the future.
How does a binary option bonus help?
A binary option bonus increases the value of a trading account. This allows the investor to place higher wages, generate more earnings, or take higher risks. For the trader, they understand that investors will generate enough transactions to pay off the bonus before any funds can be withdrawn.
If an investor attempts to withdraw their investment account before a bonus has been earned through qualifying transactions, the investor forfeits the bonus, as well as fees due for earlier transactions. A surrender fee may also be attached.
For the binary option bonus to help, the investor must stay with the trade for enough trades. The bonus increases the potential earnings while reducing liability of loss. A savvy investor will find the highest bonus available for a new account and maximize investment opportunities and transactions to increase earnings without taking on new risk. The binary option bonus ensurers a trader the client will remain for a determined time period.