Showing posts with label binary options. Show all posts
Showing posts with label binary options. Show all posts

Monday, August 12, 2013

Binary Options Bonus Reviews

Sizeable binary options bonus offers are extremely common in the industry. All the top brokers offer at least some form of incentive to encourage prospective new clients to open accounts and give day trading a try. Here we will look at some of the types of incentives offered and compare them across the various leaders in the field.

 

Read the Fine Print on Incentive Offers

The most important thing you can do when considering a bonus offer from a binary options broker is to read the fine print. Offers come with restrictions. Don't expect to open an account, get some bonus cash, and immediately withdraw it. Bonuses are incentives to try day trading - not simply free money for you to take at will.

Typical Bonus Offers

...and Restrictions

Every single cash or prize offer in the financial markets comes with some sort of restriction. The reason brokers make these offers is to encourage new clients to try the product - a.k.a. open an account, make a deposit, and make a few trades - take a few risks. Here is what you can typically expect to see in an offer and what you will likely find in the fine print.

  • Straight Bonus Cash with Trading Volume Minimum Based on Bonus Amount - This type of cash award is typically granted at the time of account opening and initial deposit. The award may vary from 20-50% of the deposit amount but usually comes with a restriction that the trading volume by the new customer must exceed 15-30 times (depending on the broker) the amount of the award. (see an example of a binary options broker offering this kind of award).
  • Straight Bonus Cash with Trading Volume Minimum Based on Deposit + Bonus - A second kind of cash award based on deposits made by new clients comes with a different set of restrictions. In this case a new trader would be expected to make enough transactions to exceed anywhere from 5-15 times the combined total of the initial deposit plus the bonus award amount. The size of the cash stake similarly would range from 20-50% typically - usually depending on the size of the initial deposit with some sort of maximum cap. Click here for an example of a company with this kind of bonus.
  • Progressive Cash Bonus Earned with Trading Volume - Along similar lines to the previously mentioned cash awards, a progressive earned bonus offers additional account funds with a twist: the client earns the award after accumulating a certain amount of trading volume. The benefit from this kind of incentive is that the funds are free and clear once earned (a.k.a. available for withdrawal by the investor). Once the award is earned no further restrictions are put on the money. This type of bonus (20-40%) is far less common in the marketplace but is much easier for new clients to understand - as the restrictions put on other types of bonuses frequently confuse beginners. See a broker review page where this type of offer is made.
  • Periodic Preferred Customer Trading Cash Incentive - This type of award is typically reserved for VIP customers and / or high-volume traders. Offers vary. Restrictions vary. This type of award is offered to high rollers and is not usually going to be seen or made to beginners or amateurs. See a reputable broker where this bonus cash policy is used.
  • Electronics Gifts with Trading Volume Restriction - A last (and previously more common amongst other industries outside financials) new client deposit incentive is in the form of consumer electronics. A firm will offer the latest gadget / widget / electronic consumer goodie in exchange for a new customer signup and depsosit. Like the similar cash awards, as trading volume restriction will apply - usually something on the order of 20 times the value of the deposit required to qualify for the award. While this volume hurdle is lower than the others - usually the gadget or gizmo is not likely as valuable as a cash bonus otherwise offered might be. See a binary broker where this offer is available.

Binary Options Broker Bonuses Vary

Be Aware of Changing Restrictions and New Offers

As interest in binary options trading increases and decreases over time incentives to promote new business will vary. It pays to shop around and pay attention to the latest offers in the market because from time to time very special awards come along. One firm may offer precious metals - like a paid in gold bonus. You can be sure that whatever is hot in the marketplace is sure to be available at some point as part of a promotional incentive to start trading. On the other hand it also pays to read the fine print and make sure you understand the restrictions that go with these special limited-time offers.

How to Avoid Being Scammed by Binary Options Brokers

Here's a short video we ran across that makes some good points as to how to avoid being / feeling scammed when opening your trading account.

Thursday, October 25, 2012

Do Binary Options Trading Sites Give Free Money?

One would think the question, "Do binary options trading sites give away free money" would be an obvious "No!" but there still seem to be people out there that think that is the case. While many (read: most) brokers DO offer some form of trading incentive (usually in the form of trade credit money) - it does not constitute free money given away. Despite the claims and appearances of some sites - those cash incentives have to be earned.

How Are Cash Incentives Earned at Binary Options Brokers?

The right question people should ask when trying to choose between similar cash incentive offers at one of the leading binary options brokers is, "What do I have to do to be able to withdraw the bonus cash?" Therein lies the devil in the details, so to speak. While a new trader might be promised a 50% bonus over and above their initial deposit amount they should be prepared for the fact that the deposited funds and bonus cash will not be free for immediate withdrawal.

This has obviously caused more than a few traders to panic. Fear not however for most brokers make it pretty simple to free up the cash: trading volume. All a new trader has to do is execute enough volume of trades to have full withdrawal rights to the bonus cash. Sometimes the hurdles can be a little on the steep side but by and large the trading volumes are not onerus. A site might expect a trader to generate anywhere from 15-30 times the amount of the bonus reward in contract volume - which for most traders happens within the first couple of weeks of placing trades in their account.

How to Get the Most Free Money from Binary Options Trading Sites

Top Cash Incentive Offers:
  1. OptionBit
  2. TradeRush
  3. EZTrader
We started the post at the outset with the caveat that cash incentives at binary trading sites does NOT constitute free money - so we're drilling that point home here. There is NO FREE MONEY at binary brokers OK?

Now having said that, most cash incentive offers are tied to the level of deposits made by the new client. The higher the initial deposit, the higher the cash incentive percentage. A typical offer might involve something like $100 bonus for a $500 deposit with a $300 bonus for $1000 up to something like a $4000 bonus on $10000 deposited. The bigger the trader's initial funding commitment, the bigger the cash incentive. Does that make sense? Other binary bonus schemes exist but this is the most typical setup.

Bonus Cash at Binary Trading Sites Is NOT Free Money!

We have to remind people that, once again, bonus cash given by binary options trading sites is not free money. The bonus amounts above represent cash that new clients can withdraw once they have reached trading volumes in their account above a set threshold as set by the customer terms of service at their broker. A trader who received a $100 bonus can expect to have to generate volume on the order of $1500 in trades (placing essentially 3 trades using their $500 stake) in order to free up the $100 bonus for withdrawal.

Seriously think about it though: If binary options trading sites were giving out free money that could be immediately withdrawn... exactly how many of those sites would still be in business today? The reality is that all cash gifts in the financial world come with strings attached... so set your expectations low and hopefully things will work out for the best OK?

Thursday, May 24, 2012

Make Money Trading Facebook

Facebook Connected with Wall $treet
Will Stock Holders Make Any Money with It?
There has been a lot of talk about how to make money trading Facebook, and now that the IPO has finally been issued (with much fanfare and poor execution) the rest of us traders have our shot at a piece of the action. Like many technology enthusiasts around the world, traders have long wanted to get in on the Facebook phenomena. In some ways that may have cursed the stock for the time being.

Ways to Make Money Trading Facebook


Any long term investor will tell you that there are a number of ways to profitably trade a stock, and Facebook will be no different in that regard. Where the principal problem remains however is that enthusiasts for the technology will have to divert themselves away from that emotional attachment and stick to emotionless trading. In order to make money trading Facebook it is a given that you will have to be willing to either wait a long time for the stock to become a value or be willing to take short positions against it. In my humble opinion the only thing keeping the stock afloat at this point is the lack of standard CBOE options contracts to trade against it.

Again - for my money it is the limited number of ways to take positions against the likelihood of a stock rise that is keeping the Facebook share prices afloat. I think once we see options contracts open on Facebook shares the long decline to true value will manifest itself.

Where to Trade Facebook Options Today


Although as of this writing standard options contracts on Facebook shares are not yet available that has not stopped traders who wish to make money trading Facebook options. There is presently one binary options broker with Facebook binary options contracts available for trading. This style of contract allows traders to get short against Facebook shares in a way which limits losses to the amount of capital investment (unlike shorting a stock or writing call options). Oddly enough the broker reports that the new Facebook binary options contracts have been very popular. Or maybe it's not so odd given how many people are trying to make money trading Facebook down to its true (lower) value.

Thursday, December 15, 2011

How to Make Money Day Trading Options

Will It Rain Money in YOUR Portfolio
This Year?
When I was learning how to make money day trading options I spent the bulk of my time doing research. Although this was obviously many years ago, the key to successfully figuring out how to make money day trading options lay in the ability to find stocks which were likely to "pop" in one direction or the other. Back then one of the major problems with starting out was raising enough capital to trade profitably. Nowadays it is much easier to find ways to participate in the options market without needing a mint to get started.

Low Capital Traders Choose Binary Options

One of the nice things about all the advances in technology - and to some extent investing without borders - is that tons of new opportunities have opened up for traders with minimum capital to invest. Many finance students graduate college with a heck of an education but no place to apply that knowledge - simply lacking the capital to profitably trade. These days with a couple hundred bucks and a decent knowledge of markets opportunities to day trade are everywhere. Among the best of those for low cap traders trading binary options. With a feel for market direction and a willingness to take some risks, binary options can make $300 a day with as little as two $200 investments.

Finding Good Trading Signals

Once you have committed to learning to trade online the next question you have to ask yourself is, "How do I know when a stock is going to pop and which direction will it go?" This is the million-dollar question isn't it? Or is it? In today's market it is far more likely to make $300 a day 10 times than $3000 in a day once. This is because market software programs try to find hidden prices of securities for sale without committing capital. Stock prices will pop up just a little to test what orders appear in the market then will either absorb the shares (if the price is cheap) or wait (if the price is expensive). This rapid up and down movement tends to make large institutions try to hide movements from into and out of shares. As a result there are fewer large one-day swings than there used to be. Fewer large one-day swings means fewer homerun option trades. Some specialist firms track momentum and trading trends that trigger trading signals to their subscribers.

Learning How to Make Money Day Trading Options Today

The key to learning how to make money day trading options today then becomes a study in how to make use of smaller movements in prices but still earn high yields. For the low capital investor we've already decided that means trading binary options - but for the moderately capitalized investor options trading still provides a high leverage high return means of putting capital to work.

Tuesday, November 29, 2011

Online Stock Trading with No Minimum Deposit

Have you ever wished you could try online stock trading with no minimum deposit? There are ways to start out with accounts that require no money and give a real feel as to what investing is like, but ultimately real trades require real money, and usually more than the typical beginner can afford to lose. On the other hand there are some ways to try online stock trading with no minimum deposit that (when the time comes for live trades) won't cost an arm and a leg to fund a real account.

Binary Options: Welcome to the World of Micro Capital Investing

It turns out that a number of companies (such as Optionbit -for US Traders- or optionFair -for non-US traders-) offer demo accounts upon request. While that is pretty much the standard M.O. for most trading firms what makes a binary options trading company different is that REAL accounts can trade profitably with as little as $100 (although $200-500 would be better). There aren't any other places or trading platforms I can think of which offer profitable trading with so little investment capital to start with.

Why Low / No Minimum Deposit Trading Binary Options Works

The number one reason why traders love working with / trading binary options is that there are no dreadful transaction costs to devour your investment capital. The other blessing is that investment increments can be as small (in some cases) as $30 or so (and I have seen even smaller!).

How can trading binary options be worthwhile for people investing such small amounts? It's all in the high yields. With yields in excess of 60% the norm, an investment of $200 can pay off $120 or more in profit with no transaction costs to eat into your earnings.

How to Start Online Stock Trading with No Money Down

Getting started using online stock trading with no minimum deposit with binary options is a good way to open the door to the world of investing. Other accounts do a nice job of demonstrating how investing works but if you're never going to have the $50,000 in hand to fund a real account what is the point of playing around with a demo account? If you are short funds to trade but want to learn and think you can scratch together a few hundred bucks then binary options are certainly going to be a better alternative for you.

Tuesday, October 11, 2011

Make Money Exotic Options Trading Online

More people are trying to make money exotic options trading online than with any other method. Is it a fad or a scam? I think not but here are a list of the top ways to make money exotic options trading online and strategies people are using.

The Most Popular Exotic Options Trading: Binary Options

Without question the great revolution in low capital / easy options trading systems began with binary options. The concept was simple enough - traders wanted a way to make money trading online but didn't want the hassle of buying and selling shares and dealing with commissions. On the other hand traders wanted consistent ways / opportunities to make money day trading. The solution? Binary options. These exotic options are trading online in over 140 countries. Low costs, high yields, high turnover, and low complexity make them ideal for the trader who wants to make money fast trading online.

Barrier Options and Double Barrier Options

A second exotic options trading solution was the development of barrier options. Very much like binary options, these offer a slight twist on the trading opportunity. Rather than being concerned with the underlying asset price at expiration, the barrier options trader (or double barrier options) is concerned about whether the stock hit the target price during the duration of the contract (again... rather than at the end of the contract). At any time if the stock hits the barrier, the trader wins (if they had that side of the trade). Although these are a more recent entry in the market, they are quickly replacing binary options as the choice du jour of new exotic options traders.

High Rate of Return Weekly One-Touch Options

Another well received entrant into the exotic options trading field has been the weekly one touch options. These extremely popular investments pay up to 400% yield if the the asset closes in the money at any time during the week of trading. This gives the weekly one-touch options buyer 5 chances during the trading week to land in the money at the end of trading each day.

Strategies to Make Money Exotic Options Trading

Exotic options trading requires a little more knowledge than what you know from basic options trading tutorials. One the other hand, once you grasp the concepts that make trading exotic options much simpler than other types of trading the benefits become much more obvious. Take a free course on the basics of binary options trading for more information and resources on all types of exotic options trading and strategies.

Tuesday, May 3, 2011

Forex | How to Make Money Currency Trading

Forex - How to make money currency trading. People will tell you it's easy - that you just open an account, make a few trades and flash, bam, boom you make money. Worse still, people will tell you that you can set up an automatically trading robot and just let it trade while you sleep.

Now while it's true some people have made money using these methods, they typically aren't for the average joe just trying to make a few extra dollars playing the market. The truth is it is far easier to lose a large amount of money in the forex market than it is to make money.

Still think it's easy? Try reading about how forex trading works. Fear not though, as complicated as making straight plays in the forex market might seem, there are other far less complicated (and math intensive) ways to take positions in the forex market and make money.

A Simpler Method for Forex - How to Make Money Currency Trading Using Binary Options
A much simpler way to make money currency trading is to use options, and more specifically a special type of trade called binary options. Binary options (as the name implies) have only two outcomes - win or lose. As a result, the contracts are vastly simplified, as traders need only determine how much money they wish to invest and click OK. Everything else related to the trade happens without further intervention on the part of the trader. No margins to compute, no worry about trade execution, no figuring out when to sell and take profit. (Read more on binary options).

Forex | How to Make Money Hedging Against Inflation
One thing people tend to forget about paper money is that like any other printed publication - the only limits to the amount of paper money in circulation is the amount of ink in the printer. These days the printers are running very fast in the United States (and elsewhere), causing a great amount of purchasing power destruction in several major countries. We have seen riots in several countries in Europe (not directly a result of inflation but effectively so), plus China and other Asian / Middle Eastern countries.

These countries have the mis-fortune of pegging themselves or otherwise tying their economies to the US Dollar. Given many major commodities have increased in price (see about buying gold), foreign businesses locked in with the US dollar have been forced to pay much more for metals and food than they would have if they'd just let their currencies float. Are you sensing an opportunity for yourself here? Think about it - you as a US citizen or resident of another country with a currency pegged to the US dollar have a problem: so long as the US Fed keeps printing money, the costs of things you buy will rise in price - as you perceive them.

The Problem of Inflation and Forex - How to Make Money by De-Pegging Yourself from the Dollar
Why is this a problem? Because the true VALUE of the things you are buying hasn't changed! That is the very nature of inflation - paying more "tokens" of value for something today than yesterday even though the items bought are exactly the same as they were yesterday. The way smart people get off the "paper token" merry-go-round is to diversify their investments (today) away from US dollar and US dollar pegged assets. This is why you see the Canadian and Austrialian dollars at all time highs today. Likewise Gold, Copper, and (almost) Silver.

If you can't afford forex trading or trading gold is prohibitively expensive - you can still get some inflation protection / diversity away from the US dollar by using a forex binary options broker or gold binary options broker.

Further - stay away from so-called inflation protection mutual funds. Read the article to see why they won't be effective for you.

More on Inflation:
How to Protect Against Inflation

More on Forex:
Understanding High Leverage Forex Trading

More on Binary Options
Trading Binary Options Profitably

More on Options Trading:
How to Trade the VIX

More on Gold:
Making Money Buying Gold

Sunday, January 2, 2011

Why Making Money Trading Stocks Has Become Marginalized for Small Cap Investors

Is Stock Picking
Still the Way to Be
Making Money Trading Stocks?
Making money trading stocks these days involves keeping a watchful eye on forex markets and central bank activities. Well funded currency traders and monetary authorities are in a continuous battle to manipulate global markets and economies. It is for this reason investors seek other means of achieving high returns without carrying the risk of being stuck in an illiquid investment.

Trading Stocks to Make Money
Day traders have come to rely on the amped up buying power of options contracts to turn small investments into big money. The key to making big money trading options is by controlling large quantities of stock without having to put up all of the money needed to actually own those shares. One drawback of the options trading market is the vast number of firms holding contracts which ultimately become worthless.

Investors new to options trading quickly find that if they don't invest in blocks large enough, gains get swallowed up by transaction costs. This inefficiency of transactions puts a minimum size of investment made (typically $1000 or more) puts severe limitations on small capital traders trying to maximize their buying power. Day trading robot programs and high frequency trading servers have made profiteering in options trading considerably more difficult than in prior years.

How Small Cap Investors Compete
Trading binary options offers people with little money to trade with the big boys, and likewise forex trading allows enough leverage to make currency trading worthwhile. While forex trading is a little complex for most investors, binary options trading is simple enough that a child could understand the basics.

Binary Options
People familiar with European options trading will be familiar with many of the characteristics of a binary option. The most important difference for people with only a few dollars of capital is that there are no transaction costs associated with taking a position. Because yields on binaries are in the range of 60% and up even a small $200 trade can earn over $100 a day.

See examples of how people are making money trading options. Traders using binary options trading signals see greatly improved returns on investment on their high yield investments.

More Articles on Making Money in the Stock Market:
Cheap Stock Market Trading
Which Trading Signals Service Is Best for Me