To run a successful business, binary options brokers have to find creative ways to attract and retain customers who will generate large trading revenues. Aside from providing the platform and other related tools required for trading, brokers also offer various promotions, bonuses, and offers. These are effective marketing strategies where both parties win: brokers gain new customers and traders get extra rewards. Below, you will find a selection of some of the most popular benefits that brokers offer.
The demo account promotion is very popular among traders. It benefits traders of all experience levels. If you are a beginner, accessing a demo account is the best way to develop your skills and learn how to trade. If you are more experienced, you can use this opportunity to get familiar with a new trading platform so that when you start trading with your own capital, you will know exactly what to do.
A demo account consists in the broker giving you a certain amount of virtual money so you can practice executing trades. It exercises your ability to manage your emotions and allows you to develop a sound decision making process. While you may not have the same level of emotional involvement with a demo account as you would with a live account, it is still a good exercise in becoming more aware of how it can affect your trading decisions.
Many brokers offer a trade insurance promotion, which specifically targets beginner traders. If you sign up for a trade insurance offer, you have the opportunity to lessen the degree of your potential losses on your first trade. As such, your broker will generally refund a portion of the money you lost in the form of a bonus.
This type of promotion is probably the most sought-after in the industry. Although many conditions are attached to them, bonus offers allow traders to speed up their learning process as well as increase profitability faster. Most brokers offer two types of bonus offers: first deposit bonus and no deposit bonus.
The first deposit bonus, otherwise known as a redeemable bonus, consists in the broker depositing a certain amount of money into your live trading account. The amount typically varies according to how much of your own capital you have deposited. This bonus can eventually be withdrawn once certain conditions, such as a specific number of trades or a given profit amount have been met.
Alternatively, the no deposit bonus (also called leverage bonus) does not require you to deposit your own money first. Instead, brokers will give you a certain amount that you can start using right away to generate profits. Although this bonus cannot be withdrawn, any profit you make off the bonus is yours.
These various promotions and bonus offers are legitimate ways to help enhance your trading experience. The key to making sure you choose the Binary Options offers that are right for your trading style and financial situation is to read the fine print. By understanding the conditions attached to these offers, you will know exactly what you are getting into and what is expected of you before you can access your funds.