Currently there are many types of Forex bonuses on the market so it’s important to understand them. In this article you will learn about the different bonus types offered and how to choose the best one for you.
Forex trading has become more and more popular among retail traders. Hence brokers have started offering bonuses, promotions and limited time special offers to attract new clients. Currently there are many types of Forex bonuses on the market so it’s important to understand them. In this article you will learn about the different bonus types offered and how to choose the best one for you.
Welcome Bonus
Forex brokers have become very generous when it comes to welcome bonuses given to new clients. Forex bonuses range between 15% and 50% of the initial investment. Some companies e.g. LiteForex offer bonuses on next deposits as well. Still, the Forex welcome bonus is probably the most popular bonus type and is one of the best marketing tools that brokers use. The size of the sign up bonus depends on the initial investment that you make and varies from one broker to another. The great thing about this bonus is that it increases the money you have available for trading. For example, if you deposit $1000 and you get a 30% bonus, you will have $1300 in your trading account which you can use to make trades. Also, the bonus is transferred to your account very quickly, usually within 1 day, so you can use it right away.
Keep in mind that when you accept a welcome bonus you also agree to the specific terms and conditions that apply to it. It is highly recommended to read them first, as there are usually some restrictions that will not allow you to withdraw funds from your account or to withdraw the bonus amount before you have reached a certain trading volume.
No Deposit Bonus
Some traders define the no deposit bonus as the “missing link” between a demo account and a live account. With this type of Forex bonus you get a small amount of money – sometimes 50 USD or EUR – which you can use for trading on the broker’s trading platform without having to deposit any funds yourself.
This bonus is a great way for you to test the platform of the broker and see the live quotes, spreads and execution firsthand. Also you can experience what it is like to trade with real money without risking your own funds. The No Deposit Bonus can be withdrawn only when you meet the specific terms and conditions of the broker. For example, you might have to trade a certain volume or you might have to make an additional deposit before you can withdraw the bonus as cash.
Refer a Friend Bonus
Forex brokers are constantly trying to attract new clients and one way to do this is to offer a friend referral bonus to their existing client base. If you invite your friend using a friend referral program, and he opens an account and deposits money, both of you will get additional funds into your trading accounts, for example $50 or $100. As a rule, the referrer gets a little bit bigger bonus than the referee. For this bonus there are also terms and conditions which restrict you from withdrawing the bonus until you trade a certain volume.
Live and Demo Contests
Many brokers organize Live or Demo account contests for their clients. The traders who reach the highest profitability level win a prize. Or, alternatively, additional funds are credited into their accounts or are given as cash. The contests usually last 1 month and all contestants can monitor their performance on the broker’s website. At the end of the contest usually the top 5 or 10 traders are awarded.
Other Forex Bonuses and Incentives
Some brokers may offer special promotions or incentives which may be awarded for different reasons. For example, you can get a free eBook, or Forex course, free trading signals, an expensive mobile phone, or even a car. Another bonus program that is becoming more and more popular offers gift cards that are credited with redeemable points each time you deposit trading funds into your Forex account.
