Like brokers in other areas of the financial industry, binary options brokers make a profit by facilitating binary trades. In order for these brokers to facilitate trades and profit, they need traders to open accounts and deposit money in those accounts, as well as to actively trade. Binary options brokers seek to attract traders to open an account and make a deposit mostly by offering a small gift. Most binary options brokers will give traders a welcome gift, which is generally a deposit bonus. Beyond the obviously seductive nature of deposit bonuses, traders should look out for other factors. They should strive to know about binary options deposit methods before they open an account, deposit funds in it, and start trading.
Digital wallets are increasingly dominating the transaction realm online, and are an increasingly prevalent deposit method in the binary options industry. The main digital wallets that are used nowadays for various purposes online are PayPal, Netteler and Skrill, apart from the digital wallet services offered by Google and Apple. The first company to enter the digital wallet market and make a name for itself was PayPal. It is still probably the most popular digital wallet available.
Brokers also use traditional deposit methods apart from digital wallets. Some of these deposit methods are: credit and debit card deposits, money orders and/or wire transfers. Choosing the right deposit method depends on your needs and the deposit methods available for each broker. Clearly every deposit method has advantages and disadvantages. There are however, deposit methods that will carry higher fees than others. Wire transfers are almost always more expensive than any other deposit method available for example. To get rid of the middle man in a transaction, the binary options industry is increasingly warming up to bitcoin deposits. There is no doubt that at the moment, bitcoin deposits are the cheapest ones out there, but the cost of a transaction should not be the sole parameter you use when choosing your preferred deposit method.
You should analyze what the different deposit methods offer beyond their cost in order to decide which suits your purposes. There are important features that each deposit method will allow you to recur to. These features may be critical especially when making a deposit to a binary options account. For instance some digital wallets have a dispute mechanism that will allow you to recover your deposit if you find out that your broker of choice is not keeping its promises or is a scam. If you chose to use a wire transfer for example, you will not be able to dispute the transaction if the other party does not uphold its duties. Debit card deposits will also be quite difficult to dispute, whereas credit cards will be less problematic in terms of deposit disputes, but could still refuse to hear your grievances.
Binary options brokers have all assessed these features well. This is why there are brokers who refuse to take digital wallet deposits. They justify this by pointing out that traders have disputed payments and have gotten their money back even when the broker delivered on all its promise. This is still a point of contention that is a popular discussion topic in various binary options forums, regarding deposit methods.
Beyond your choice for your preferred deposit method, you should always keep in mind the following before you open a binary options account and make a deposit:
- Get to know the welcome bonus policy of your chosen broker thoroughly
- Choose a broker that will let you make a deposit with your preferred deposit method
- Always read the broker’s reviews and make sure that you are opening an account with a trusted binary options broker
- Make sure that you know your broker’s withdrawal policies before you make a deposit.
- Take into account that your preferred deposit method might not be available for withdrawals
Our team has compiled a list of trusted brokers. You can read the reviews from the list and learn more about binary options deposits before you choose a broker and make a deposit. The list and our reviews include welcome bonus availability and policies, so you can choose which binary options broker you trust to handle your trading account. Once you have chosen your preferred broker, click on the link, open your account, and deposit. Try your skill and start trading!