The binary options trade insurance is in fact another promotional tool to help traders get more for their money. Binary options trade insurance applies in the first losing trade and refunds some or all the trade amount. Brokers want traders to win and gain profits and they know that usually new traders start learning and get some losing trades so the insurance comes to reduce the disappointment when a loss occurs. In the case of a binary options trade insurance, the broker actually transfers money from its account to the trader’s account as an act of confidence to encourage the trader to keep learning and practice and to demonstrate the common target of producing many profitable trades that will serve both sides.
Trade insurance can pay real money back or function as a leverage bonus just like in the case of the leverage deposit bonus. These kinds of cashback should be used to generate more trades and gain more knowledge and practice.
There are brokers that prefer giving the trade insurance promotion more than the deposit bonus because they want to push traders to trade and believe that it is a better way to achieve that. There are some brokers that offer both the deposit bonuses and the trade insurance for new traders that deposit large deposits and show they are serious about trading. The binary options trade insurance is basically equivalent to a deposit bonus and as a general preference we recommend the binary options deposit bonus as the favorite promotion that brokers give traders. Here are several excellent brokers with great promotions for Binary options Academy users: StockPair, iOption, Plus500, OptionsClick, and EZTrader.