Promotions offered by Binary options brokers:
Binary options brokers offer attractive promotional deals to attract clients. These may include Bonus deposit, higher pay out and risk free trades.
Bonus Deposit :
The brokers deposit a bonus amount into the traders account which may be up to 100 % of your deposit. The bonus amount should be taken with a pinch of salt. It usually comes with some restrictions and complicated terms and conditions which are very difficult to be complied with. Once you start using the bonus amount , the broker put hold on your fund withdrawal. You have to achieve certain trading volume ( up to 40 times the bonus amount) to be eligible to withdraw your own fund.
In most of the cases the trader ultimately lose while trying to achieve the huge trading volume and the broker makes money.
Many regulators (CySEC, MiFID and FCA ) have started taking this bonus deposit by the brokers as a inappropriate practice , and issued circulars prohibiting it. There are some brokers offering bonus deposit even now. You may accept bonus deposit after you understand the terms and conditions completely.
Higher Pay Out :
Since bonus deposit is discouraged by the regulators keeping in view the best interest of the traders, the brokers have now started offering higher payouts ( up to 95% , amount to be credited to account for a successful trade) to attract traders. Higher payout offer is usually not associated with any trading volume requirements, hence it is better to choose these regulated brokers. Even 1- 5 % higher payout can make a huge difference to your profits in long run. Hence higher payout must carefully be considered while selecting a binary options broker.
Risk free trades with no terms and conditions :
Risk free trade gives you a refund in case the trade expires out of money. Few brokers offer this to a new trader for first 2 or 3 trades. The trader must first take approval for such risk free trades from their account manager before availing risk free trades.