So you have finally decided to start trading Forex, that’s great news and already a huge step forward.
Did you know that some brokers will provide you with special bonuses and promotions for your trades?
So you have finally decided to start trading Forex, that’s great news and already a huge step forward.
Did you know that some brokers will provide you with special bonuses and promotions for your trades? While not all of the brokers offer trading bonuses, many do. Trading bonuses can give you additional money to make even greater profits, but where exactly can you find the best FX bonuses?
That’s exactly what we are going to discuss in today’s detailed guide to Forex trading bonuses.
List of Best Forex Brokers with Deposit Bonuses
Deposit bonuses are the type of promotions that Forex brokers offer for the deposits that you make. These bonuses increase your initial investments and let you make even greater profits. Below, you can see some of the best Forex brokers that offer traders deposit bonuses. Take a look at our list and find the broker that fits your needs the best.
Receiving Forex Deposit Bonuses
Forex deposit bonuses come in a variety of sizes and shapes. Although some Forex brokers offer large bonuses and promotions to attract clients, Forex bonuses are not as popular as they are in other industries such as binary options trading, spread betting, and sports betting.
Deposit bonuses are far more popular in industries like gambling, for example. Forex trading, as opposed to gaming or gambling websites, is a genuine business idea that allows an investor to make informed market judgments while earning a secure and consistent income.
Although skilled traders avoid Forex bonuses, novice and intermediate traders may find bonuses useful in their journey to develop a successful trading portfolio. The general idea of deposit bonuses in Forex is that the brokers provide additional funds for the deposits that you make. This can be as little as 10 percent of your deposits or as much as 50 percent.
Most Common Forex Trading Deposit Bonuses
Forex deposit bonuses start from as low as 5% of the deposit amount to as high as 100% of the initial deposit. Some brokers also offer up to 200% or even larger numbers, but a majority of mainstream brokers limit the amount of bonus to a 100% maximum. The structure of these bonuses mostly depends on the amount of deposit, the type of account, and the credibility of the broker.
According to industry norms, trusted and reliable brokers often offer fewer bonuses when compared to other lesser-known brokers. On the other hand, the availability of a bonus or the lack of it alone is not entirely representative of the quality and reliability of a certain brokerage.
Some FX brokers also offer a free no-deposit bonus that allows traders to start trading without making an initial deposit. Such no-deposit bonuses are ideal for traders to enjoy a risk-free environment where they can evaluate the real-life results of their trading strategies without putting their hard-earned money on the line.
No deposit bonuses are also excellent alternatives to demo accounts, as demo accounts are mostly incapable of replicating the actual emotions and psychology of trading on a large scale.
Advantages of Forex Deposit Bonuses
Many people enjoy Forex trading deposit bonuses. There are numerous advantages that they come with, for example, they can be a great help for traders to increase their turnover in the Forex trading market.
Bonuses are intended to increase the investment in a trading account without actually making a trade. A bonus is a sure-fire way of achieving instant profits without any risk. Therefore, bonuses allow a trader to hold more positions and open bigger lots when compared to their initial deposit amount.
Also, more money in the account equates to using more leverage and increasing the position size, which helps in enjoying more profits. Of course, added leverage is highly risky, and the downside is huge. Nevertheless, bonuses allow a trader to leverage his position and use it to his advantage. In addition, some brokers offer insane deposit bonuses that allow traders to double their investment even before entering the market. No deposit bonuses remove the risk out of trading, which is a further incentive for traders to minimize their risk exposure without making any compromises. All of these make Forex trading bonuses very popular among traders.
Disadvantages of Forex Trading Deposit Bonuses
As with anything else in the Forex trading market, deposit bonuses also come with numerous disadvantages that traders should keep in mind. As much as some traders might love everything about deposit bonuses, other parts of it make some traders avoid the deposit bonuses in the Forex trading market.
For example, almost all FX brokers require traders to agree to several terms and conditions before they become eligible for a bonus. Some of the terms outlined are close to impossible to achieve, which prevents a trader from making a withdrawal of their initial capital without satisfying the associated conditions.
Risks Around Withdrawals
All deposit bonuses are added to a trading account as a credit, which cannot normally be withdrawn. Even if a trader meets the bonus terms and conditions, it is up to the broker’s judgment whether or not the profits made with the bonus money are acceptable for withdrawal.
Most unethical brokers utilize bonuses as a pretext to avoid paying out money to their clients, and bonuses are widely regarded as the leading cause of broker-client disputes.
No-deposit bonuses are also highly notorious for being stringent regarding the terms and conditions. Even if a trader manages to make hefty profits through a no-deposit bonus, he will still have to make an actual deposit before he can withdraw his bonus profits.
This goes against a trader’s primary instinct of making profits from virtually nothing, and the brokers understand this very psychology by forcing traders to deposit granting full account freedom. In most cases, the trader ends up losing his entire capital due to the psychology and emotion of trading, which makes the broker the ultimate winner.
Forex Deposit Bonuses & Laws Around the World
While Forex trading bonuses might be popular among some of the traders around the world, not every jurisdiction allow them. Over the years, it has become a very popular practice in some countries to limit the amount of deposit or no deposit bonuses that can be available for traders.
There are many reasons behind this. The primary reason for this decision, as cited by leading regulatory agencies, is that many of the scammers used bonuses and promotions as a way to attract more clients to their platforms, eventually stealing money from traders.
Among many jurisdictions and regions that have similar laws about the limitations of Forex trading deposit bonuses in Europe. The local regulatory authorities have restricted access to the trading bonuses. Thus, no European-regulated brokerage can offer traders bonuses and promotions.
Similar regulations are in place in other jurisdictions as well.
Should you use deposit bonuses?
Every trader should understand the advantages and pitfalls of Forex deposit bonuses before opting for a bonus. As with every other investment opportunity, it is advisable for traders to be careful with their money and only choose a bonus if they are confident of satisfying a broker’s bonus terms and conditions.
Some traders blindly agree to the T&C before going through them, which can prove to be a disaster in FX trading.
You can opt for a bonus if you are just starting with a small initial capital, and require a bonus to leverage your money to open meaningful positions.
Some brokers offer exclusive bonuses to the tune of even 200% and 400%, which can increase your account equity significantly. In most cases, VIP accounts do qualify for larger bonuses, but the amount of capital vested with a broker is usually too significant for traders to risk their money for a mere bonus.
Therefore, it is up to a trader to decide. At the end of the day, it should be remembered by traders that the final decision is theirs to make.
If you believe that the brokerage that you are using is 100 percent legit and there are no worries around using deposits for their own gain and wrongdoings, you can freely and confidently use bonuses for more gains in the market.
Among many things that you should consider when using deposit bonuses are to always read the bonus terms and conditions, always contact the customer support team of the brokerage if you have any questions, and never assume anything unless you are certain about it. Also, always make sure to do business with a regulated Forex broker and do not trust those that lack regulations. This could lead to numerous challenges and problems while trading.
FAQs on Deposit Bonuses in Forex
Deposit bonuses in Forex are special promotions provided by brokers to the deposits that you make while trading currency pairs. These bonuses work in a very helpful way for traders and provide them with additional money on their accounts. Deposit bonuses are offered by a lot of brokers around the world and are popular among traders as well.
No, as long as you know that you are dealing with a legitimate Forex broker, the deposit bonuses are not dangerous. However, keep in mind that you should always very carefully check the Terms and Conditions of the bonus that you are using and you should never assume anything unless you are absolutely sure about it.
There are some fraudulent brokerages in the industry that have historically used bonuses and promotions to attract more traders to their dangerous platforms, resulting in many issues as well as losses for traders.
It depends if you are sure that the broker you are using is legitimate and there are no issues associated with it, then you can use the deposit bonus without worrying too much. On the other hand, if you have any questions about the legitimacy of the brokerage, it might be better to avoid using the services of the brokerage altogether.
