Forex Bonuses – The Ultimate Guide to the Best Forex Bonuses
Forex bonuses are an essential part of a Forex broker’s marketing strategy. The more traders choose a particular broker over another one, the more incentives that broker gives to attract new customers. There are many types of Forex with bonus available on the market. Some brokers offer deposit bonuses, others provide account maintenance or trade volume rewards and some others will reward you for referring your friends to open an account with them. In this article, we take a look at all the different types of Forex bonuses and explain why you should be looking for them when choosing a new broker.
What is a Forex bonus?
A forex with bonus is a type of reward that a broker gives to traders who open an account with them and make their first deposit. The purpose of a bonus is to attract traders who have never traded with a particular broker before. A bonus can also be given to existing traders as an incentive to keep them in the broker’s trading platform. You will find that some brokers will advertise a “100% bonus,” whereas others might advertise a “25% bonus on all deposits.” If you are new to the world of forex trading, it can be confusing to understand what these terms actually mean.
Types of FX bonuses
Deposit bonus
A bonus given to traders who make a deposit into their trading account. A deposit bonus is usually offered in the form of a percentage of the first deposit amount. For example, a broker might offer a 100% deposit bonus. This means that if a trader deposits $1,000, the broker will give him $1,000, or $2,000 if the trader deposits $2,000. The purpose of a deposit bonus is to give new traders a better start. Traders who get a bonus tend to start with a higher account balance than those who deposit the standard amount. You can find deposit bonuses in many types of industries, but only in small amounts. Brokers in the Forex industry typically offer deposit bonuses in the range of 100% to 500%.
Account maintenance bonus
An account maintenance bonus is given to traders who maintain their account for a specified period of time. These bonuses are usually given in the form of a percentage of a trader’s monthly account revenue. For example, a broker might give a 100% account maintenance bonus for the first 3 months. This means a trader’s account balance will start at $1,000, even if he deposits $2,000. Forex brokers who offer an account maintenance bonus will usually specify a minimum trading volume as a condition for receiving the reward. A typical requirement is 50 lots per month. Account maintenance bonuses are an excellent way for brokers to reward loyal traders. These bonuses encourage traders to stay active in the broker’s trading platform, even if they don’t experience significant profit.
Volume bonus
A volume bonus is awarded to traders who trade a specified amount in a specified time period. The time period can be a single month, quarter or even year. The amount of trading volume can differ according to different brokers. A typical volume bonus will be awarded in the form of a percentage of the total trading volume. For example, a 100% volume bonus is given when a trader makes a certain amount of profit within a specified time frame.
Referral bonus
A referral bonus is given to traders who invite their friends to open a trading account with a broker. The number of friends a trader refers determines the amount of the reward. Some brokers will even give you a percentage of the trading volume made by each friend you invited. A typical referral bonus will be awarded in the form of a fixed dollar amount. Some brokers will also award a percentage. Regardless of the type of reward, you should be careful about referral bonuses. Some brokers will give you a reward even if you’ve never made a single trade.
Confirming a Forex bonus is real and not just an ad gimmick
In an industry where false advertising is common, it’s important to know how to spot legitimate brokers. There are a number of regulation authorities that can help you with that - the FCA (Fincancial Conduct Authority), NFA (National Futures Association) and CFTC (Commodity Futures Trading Commission) to name a few. Forex bonuses are an essential part of a broker’s marketing strategy because they are an excellent way to attract new traders. But what happens when a broker offers a 100% bonus, but you only see $500 in your trading account? Forex brokers often advertise “100% bonuses”, but the reality is that 100% bonuses are never given. What you see, however, are $1,000 deposited into your trading account, as well as $2,000 if you deposited $2,000. It is important to know that forex bonuses are usually deposited into your trading account in two installments. The first deposit is usually half of the total bonus amount, while the second deposit is the remainder.
Bottom line
Forex bonuses are an essential part of a broker’s marketing strategy. They are designed to encourage traders to open an account with a particular broker and trade in their trading platform. In order to take advantage of a bonus, you must first open an account with a broker, place a deposit and meet the bonus requirements.
With so many different types of bonuses available, you have a great chance of finding a reward that meets your trading needs. Make sure you understand the requirements, however, or you might miss out on a valuable reward.