5 Important Tips for Beginners – How to Stay Safe and Benefit from Binary Options
You are green, inexperienced and want to make some money from Binary Options. That’s good, but one thing you have to keep in mind: it’s not as easy as some would want to make you think. Now I am not here to burst your bubble and say it will take years to learn and master, but when you see all those ads saying “So easy even Grandpa could do it” or “Start today, make 10K by tomorrow”, don’t buy into the hype, keep calm and follow the next tips:
1. Don’t Get Too Excited by High Bonus
It’s a well known fact that binary options brokers try to get more clients by offering a first deposit bonus. Basically they will add a certain percentage of your deposit to your account: you deposit 1,000 and they add another 500 so you can trade with 1,500. In this example we are talking about a 50% bonus but it can be lower or higher (even 100%!!!). It’s not bad, it’s just a normal marketing tactic used in the past by Forex brokers as well and, heck even by your supermarket: “Buy 2 jars of jam, get the third one free” (that’s a 50% bonus). So, in itself, the idea of a bonus is not bad and it should be used to leverage the initial budget, but it doesn’t come for free. When you receive a bonus, it doesn’t mean that you can just trade once or twice, then withdraw all your cash plus the bonus (come on, that wouldn’t be fair towards the broker and I don’t believe brokers want to hand out money for free). To be fully entitled to claim the bonus a trader has to reach a certain trading volume (sometimes called a bonus requirement). This bonus requirement is usually calculated by multiplying the bonus amount by 30 or even 40 so for each dollar received as a bonus, you will have to turnover 30 or 40 bucks. If you received a 100-dollar bonus, you will have to trade 300 or 400 dollars. Of course this differs from broker to broker but it means that the higher the bonus you get, the harder it will be to be claim it. Pick Binary Options brokers with a lower bonus.
Check out here “Binary Options Bonus – Don’t Get too Excited” Article
2. Many Ways to Avoid Binary Options Scam
A minority of outlaw brokers has stained the growing band of Binary Options trading. These crooks are out there to take advantage of innocent traders who only want to enjoy the fruits of Binary Options. Many Binary Options reviewers and bloggers exist to help traders avoid these kinds of frauds. BinaryOptionsthatSuck.com is here to lead the research and to help keep you protected from Binary Options scams but you have to promise you won’t believe everything you hear and you won’t give your money away. Back in the day when binary options were a new thing, people got scammed a lot more than they do today, but it’s still a dangerous world so if something sounds too good to be true… better stay away and check our article Feeling You’ve Been Scammed? Check The Facts!
Check out here “How to choose your Binary Options Broker” Article
3. Demo Accounts – Virtual Cash Accounts are here to Help
Most Binary Options Brokers don’t offer a free demo account, they want your deposit first. There are several reasons for this, but I don’t really understand why so many people refrain from trading just because they have to deposit before hand. If you’ve found a broker that doesn’t suck, then why not make a deposit when you can get your money back, in case you haven’t used it for trading? My suggestion is to deposit with a trusted broker, and then use the Demo Account for learning before actually trading. Too many people simply jump into live trading and put their hard earned money on the line without learning first. Why? If you have the option to use a Demo account, take it and make the best of it. Learn first – risk your money later. If you lose your first Demo account, think how you would feel if that were real money… not good, I bet. So use the demo (virtual money) account if your broker offers one but if for some stupid reason the broker doesn’t give Demo accounts, just look for one who does or use our CommuniTraders platform.
Check out here “Binary Options Free Demo Account” Article
4. Terms and Conditions – Worth’s a look, just to be sure
Important information about withdrawals, bonus turnover requirements and other restrictions can be found in this section in which every Binary Options broker must publicize. No need to read the whole document written there, just look for the words “bonus and withdrawals”, and make sure they match the Terms & Conditions of brokers such as those on our list. Whenever you open an account with a binary options broker, you have to agree to their Terms and Conditions. If you don’t read that document, it means you blindly agree to a contract without reading it. Now why would you do that? Read the contract first! I know it can be tedious and time consuming but I believe trying to get your money back from a scam broker can be even more time consuming and frustrating.
Check out “Binary Options Terms & Conditions” Review
5. Make Sure You’ve Prepared the Required Documents for Withdrawal before Depositing
- Official ID(with picture)
- Proof of Address- which can be utility bill, bank statement, credit card statement, etc
- If credit card used to deposit funds: Front and back copies only shows last 4 digits
The required documents can differ from broker to broker (for example some will only accept a bank statement, not a card statement, etc.) but in general they are the same. Brokers are required to ask for these documents to certify you are who you say you are. It’s part of the Anti-Money Laundering (AML) and Know Your Client (KYC) policies so when they ask for such documents, don’t believe they want to steal your information or stuff like that (although it’s not completely implausible if you are dealing with a scam broker). Make sure you have and provide these necessary documents before you make the deposit. Don’t get caught without these elements because you’ll find it very difficult (almost impossible) to receive withdrawals if you are missing them.
Check out here “Binary Options Deposit and Withdrawal” Article
Wrapping It Up
There you go guys, we gave you 5 tips that every newbie should follow but there’s a lot more you need to know about the Binary Options industry before you jump in. This is just the tip of the iceberg, the beginning of your journey and I believe you are in the right place because we cover almost every aspect of trading throughout our website. Our School provides almost all you need to know about binary options and the other sections of the site offer the rest. And if you don’t feel like opening a demo account with a broker, just join our free CommuniTraders platform where you can practice with a $20,000 demo account – no deposit needed, no strings attached of course.