If you are a newbie to foreign exchange and trading in it, then you ought to know what it has in offer for you. Brokers will say that this is the best to time to start up in forex trading simply because you are the most valuable asset to every trading firm out there. You are the individual investor, and that is where growth stats are in this new age of foreign exchange.
Looking at the situation from your side, every trading firm out there has its own lieu of forex bonuses along the line. Understanding what these bonus offers mean for you is of utmost importance as you ought to make the best of them. Getting a head-start in this highly competitive market gives a lead over your peers thus making way for better-sustained profits.
Top 4 forex bonuses:
This is something which most trading firms out there have on offer for you. These bonuses give you a starting amount ranging from $5 to $100 which you can use for investment. Although this sum cannot be withdrawn from that account, you are eligible to take profits if they come along with it. More often than not, these accounts have leverages above 200:1 and even a $50 initial margin turns out to be $10,000 in the market, quite a large sum.
Some trading accounts give a straight percentage increase on initial investments up front. This type of forex bonuses works in both ways, for the investor and that trading firm too. From the firms’ point of view, these offers push an investor to put the maximum possible cash in their account. And given that these offers average around 30% to 50%, investors like you find these offers very lucrative. E.g.- A 50% bonus on a $1,000 investment means it increases to $1,500. Consider what you can get for a $5000 initial investment.
Instead of just giving away in cash, some trading firms provide these forex bonuses in the form of lots. Suppose that you’ve traded 5 lots in a transaction. If there is a 50% lot bonus, profits will be calculated on the basis of 10 lots instead of 5. And this bonus only works in case of benefits; a loss if incurred will be calculated as per the initial position.
There is no brokerage attached to foreign exchange dealings except in the case of particular commission-based brokers. Spreads, or the difference between bid and ask prices, is a way for brokers to earn as per their services. Some trading firms offer free spreads or rather no spreads. These forex bonuses thus give you the opportunity to enter and exit trades or positions exactly at the live market price quotes.
Forex bonuses are meant to give you a leading edge when you start up, to make sure you get the best out of this foreign exchange market. So, what are you waiting for then?
Invest and Prosper.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.