Many binary options brokers now offer more than one type of account. Tiered accounts directly linked to initial deposit amount, with a larger number of perks being provided to those who hold higher tier accounts. Since extras do come at the higher level, traders are advised to carefully weigh out whether or not these benefits are valuable enough to justify a larger upfront deposit.
Standard Starter Accounts
All brokers have some type of minimum investment requirement. Typically, minimums range from $100 to $250. Minimum deposit amounts are linked to “standard” accounts, which are the lowest level on their tier. The good news is that these accounts are likely to provide all of the necessary tools, educational materials, and access to the exact same trading platform as anyone else. There is no harm in depositing only the minimum, especially if you are new to trading and are not willing to take on a lot of financial risk.
Middle Tier Accounts
The middle tier accounts often provide a few additional tools, such as a charting package and market analysis. Faster withdrawal processing is often offered to clients who opt for middle tier accounts. These accounts do require a higher upfront deposit than standard accounts, but once you have deposited funds and locked in your position, you’ll remain at the same account level. It is possible to move up to higher tiers, but your level should not decrease.
Top Level VIP Accounts
The highest levels are often referred to as “Platinum” or “VIP” accounts. These require a substantial upfront deposit amount, often exceeding $10,000. There are plenty of notable benefits associated with these accounts such as personal training sessions with a binary options expert, trade signals, unlimited demo accounts, instant profit withdrawals, and more. Although every trader should have unlimited access to customer service, top tier account holders typically have access to senior account advisers and market experts.
Deposit bonuses should factor into the decision of which account type to opt for. These bonuses are linked directly to the deposit amount, with larger bonuses being provided to those who deposit larger amounts. Bonuses do come with terms and conditions for withdrawal, so be prepared to have those funds locked into the platform until those conditions have been met. For the experienced trader, bonuses can seem a wonderful gift, but new traders may see them as a challenge should the conditions be difficult to satisfy.
It is important to keep in mind that minimum deposits are perfectly fine, so do not overly concern yourself with higher tier accounts if you cannot afford a larger deposit. Basic accounts provide everything that a trader needs, just without any of the flashy extras. Since it is possible to upgrade an account to a higher tier at a later time, there is no harm in starting out with a smaller amount so long as the deposit amount will allow for plenty of profit growth. Without a suitable upfront deposit there will be little protection against some inevitable losses. Safeguarding your accounts funds while trading binary options should be your top priority.