Earning binary option trading bonuses is one of the attractions that every trader looks forward to. These are basically payouts that binary option brokers offer to their customers in order to retain them and familiarize their clients with the trading platform they offer. One of the biggest advantages of getting rewards and bonuses is that even if you fail to earn profits initially, with the help of these bonuses you can to a great extent be compensated for the loss you have incurred on your investment. Another benefit of bonuses is that it enhances the value of the system of binary option trading, thereby allowing the risk you take in binary trading to get lowered.
In this article, we will go through the different types of binary option trading bonuses you can expect a binary broker to offer you when you sign up for their services. These have been explained below.
One type of binary option trading bonus is known as the rebate bonus. In this you as a trader will get back a part of the initial deposit you make. But this is usually applicable for a specified time period that is decided upon when you enter into a contract with the binary broker. The rebate bonus is usually disbursed towards the month end. However, the amount you get as rebate bonus will differ from one binary broker to another.
Referral bonus is another type of binary option trading reward and payout. When you refer a friend to the trading platform you are associated with, you get a referral bonus. But not all binary brokers or trading platforms will offer this incentive to you. However, it is best to refer someone that is financially sound and understands the concept of binary option trading. This is because if the trader fails to earn any profit in the first trade, he should not blame you for the referral. It is a well known fact that a binary option trade can have only 2 outcomes, either you win your money or you lose it.
Bonus for signing up- These are also known as sign up bonuses. There are many trading platforms that will offer incentive to first time traders. This is usually done to encourage traders and help them to get acclimatized to the trading trends and patterns in the binary option trading market.
There is another type of binary option trading bonus that is given out to traders. In this you get a “matching” deposit amount same as what you have deposited when you started trading initially from the broker. This can be better understood with the help of an example. For instance, if you had initially deposited an amount of USD$500. And if the percentage of bonus on offer is 25%, you get an additional USD$125 on top of the already deposited USD$500. So, that amounts to USD$500+USD$125 equal to USD$625.
Regardless of the type of bonus you are entitled to it is important that you read the fine print. Go thoroughly through the terms and conditions of the bonus that are on offer. And most importantly, make sure that the bonus that is being offered is not any kind of means to rip you off.
SB is a finance expert and professional writer. Currently he is writing for http://www.binary-options-brokers.com/.