New traders visit forex trading platforms to acquire the recent forex market update, movement of currency pairs and other important information to enhance your trading decisions. During those visits, it’s possible to come across numerous forex bonus deposit offers claiming to help you trade more effectively. This article will explain what these deposit bonuses are, what are its strong points and what are the points which you have to take into account.
So read every bit of it carefully!
What defines a forex bonus deposit?
Due to the competitiveness witnessed in the forex market, different forex brokers try to fight for new clients. However, it’s not always feasible to convince traders to shift to another service provider just on the basis on tighter spreads and more advanced technology.
It can work in case of new traders but very less on those who are already associated with a trading platform. To give them that oomph factor most brokers come up with attractive forex bonus deposit
This was an initiative taken 5 years back and many considered it to be very ingenious. Come 2016 and it still pretty much considering the volumes of traders who are availing these bonuses.
Forex bonus deposit, as pretty much the name suggests, is an amount which is credited to traders’ accounts from the broker’s side after they reach a certain trade volume.
At look at the top preferred offers in the recent market include
In the online world you will come across numerous trading platforms which provide forex bonus deposits.
1. Companies are seen giving away 200% cash bonus on every deposit of $100 and above. The maximum deposit which is feasible for such kinds of bonus offerings is $10,000. As you can see, this is quite a big sum of money and only the top trading firms in the worlds can give new investors this bonus in their trading accounts.
This type of bonus is known as Bonus Go and it is applicable on any amount of margins or reinvestments you make. And on multiplying it with the bonus offerings, it means your bonus offer is somewhere around $20,000. Henceforth the total amount which you get for your trade purposes is your investment $10,000+ the bonus offer $20,000 which equally $30,000.
2. Another popular forex deposit bonus which you will come across is a deposit fee paid back. When you make a deposition using your card you are reimbursed for a deposition fee. There will be no involvement of any 3rd party reimbursement systems and all payments will be carried our directly between the trader and the broker.
3. Some websites are also giving out a 30% bonus offer on every the first deposit of $100 made in the 1st hours of the account set up. Then on the second deposit made another bonus of 15% is offered for all payments carried out the next 24 hours.
This is valid for 3 months.
How is a forex free deposit bonus different from a conventional deposit bonus?
Firstly both forex deposit bonus and forex free deposit bonus are part of the incentives which online brokerage companies give out.
Now comes the difference
Bonus deposit meant is universal in nature, while free deposit bonus is given out to only new traders who have signed up for the first time.
A forex bonus deposit offer is mainly a form of appreciation which brokers give away top traders after provided them with a particular sum of income. It is a reward for achieving a particular trading volume.
In case of forex free deposit bonus there is no investment which has to be made from your end. On opening a real trading account, you will be sponsored an initial credit from your broker. That amount may vary from broker to broker and also may incorporate different rules and regulations.
Free bonus for forex schemes makes way for risk-free trading. When you win you keep the gains and when you lose you do not have to pay anything as you do not owe any money to the broker.
There are some things which you should keep in mind. First is these bonus offers are valid up to a certain period and in case of forex bonus deposit, you have to keep depositing some amount constantly. No such case is seen in no-deposit bonus, but as per terms and conditions of some brokers, when you receive the money, you have to use it within 7 days. Otherwise, it will dissolve automatically. Make use of broker reviews to choose the best broker and trade smartly.
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.