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What Different Types Of Binary Options Bonus Schemes Are There?
Every trader gets attracted to an interesting binary options bonus offer. Most of the binary option sites would provide their clients with one or more types of bonuses in a way to provide the trader with the encouragement it takes to deal with risks. Bonuses, in part, help clients to buffer up on their losses. Bonuses are considered a great way to help clients get used to the trading platform. Familiarity with the trading platform establishes a kind of liking to the site, which makes the trader retention far easier.
While bonuses are good in multiple ways, not all bonuses are same. Different types of bonuses are provided to traders. The major classes of bonuses are:
- Sign up bonus
- Deposit bonus
- Referral bonus
- Risk free trades
Sign Up Bonus
Sign up bonuses are meant to encourage prospective traders to ultimately sign up and engage in the process of trading in the site. There are several traders who might be well interested in trading, but they might not be interested in coming out of their pockets to invest real money. They might be still deciding on whether to start off or not. They might be psychologically panicking about how they can buffer up the losses with their first investments. Such users get encouraged by the sign up bonus, where they get money simply for signing up. Sign up bonuses is a great ice breaker to have clients sign up with the site, and many make money with affiliates by using similar methods.
There are different types of deposit bonuses offered to clients. Some sites offer 100%, which is commonly known as the match up bonus. Some clients go to the extent of offering up to 500%. This is however variable between trading platforms. There tends to be different levels of memberships based on the account types that define the minimum and maximum deposit level applicable for the account type.
For instance, consider a situation where you are dealing with different account types like bronze account, silver account, gold account, and platinum account. Obviously, the minimum deposits for the different account types will increase with the level, where the platinum account might be the one with the maximum deposit. When this is the case, offering 25% deposit bonus to bronze account, 50% deposit bonus to silver account, 75% to gold account and 100% to platinum account will make the deal competitive to have users sign up for maximum deposit bonus. This is just an illustration, real time bonus plans for account types vary between clients.
Traders who are already investing in the site can earn bonuses when they refer a friend who will invest and trade in the site. When the investor who has been referred, invests the money, both the referred and the referee will be getting a bonus.
Risk Free Bonuses
These are like guaranteed trades. A trader is offered so many risk free trades and their next trades that fill that quota are covered so that if you make a losing trade you get back your investment. It means you can make profit and keep it but you will not lose your own money. These are one of the best types of bonus awards. Check with your broker and see if they are offered.
Traders should always remember that bonuses have terms and conditions and a smart trader always checks these before accepting a bonus and understands these conditions up front.
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