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The following article was published in our article directory on May 7, 2013.
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Binary Options Bonuses Defined

Article Category: Finances

Author Name: James Smith

A lot of brokers offer binary options bonuses and special promos just to attract more clients into their fold. However, it is unfortunate that a lot of people get the wrong impression about the bonuses given or about binary options in general, specifically about brokers. Sometimes, because of their wrong impression, they lose money. Do not think that a bigger bonus automatically offers or guaranties better chances to gain profits. This is not entirely true.

If you are starting out as a forex trader, bonuses and promotions can give you a big boost. For instance, you may need to put up a $200 investment to earn as much as a $100 bonus for your account. This is a 50% bonus that is higher than the average of 25-30%. Brokers usually deposit the binary options bonuses after receiving the initial investment amount. Although this looks promising for your account, do not get carried away just yet as this is not as plain and simple as it seems.

First, you need to be aware of the restrictions the broker may impose and the possible implications on existing and potential traders. A common restriction concerns profit withdrawals. So it is best that you first understand the terms and conditions before signing up.

How Binary Options Bonuses Work

For example, you have decided to open an account with a broker who offers a 40% bonus for an initial investment of $250. With the $100 bonus, your account now has a total of $350. However, in order to withdraw from your account, you may need to trade anywhere from 20 to 30 times the bonus you received depending on the broker you're trading with.

In the given example, if your broker requires trading of at least 20x the bonus, you have to trade at a volume of at least $2000 ($100 x 20), including losses. Only then will you be allowed to withdraw your account in full including the binary trading bonuses and whatever profits you have made so far. In case you want to withdraw without meeting the required trading volume, penalties may be imposed by the broker.

This restriction does not necessarily mean that the bonus offer is a scam. It is after all a basic guideline that most binary options brokers follow in offering bonuses. So it is up to the trader to understand everything about the bonus before signing up.

Conclusion

Binary trading bonuses provide a great boost for beginners, but they must still be proportional to the initial deposit. Just use the bonus to trade wisely. After all, it is intended to help you get started, but do not think that it can cover for your losses as you will find out in the long run, and as you gain more trading experience. Simply put, the bonus should not embolden you to trade carelessly.

Keywords: forex bonuses, binary options bonuses, forex training, binary options training, forex affiliate programs, binary options affiliate programs

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