Forex deposit bonuses come in different shapes and sizes. Although some Forex brokers offer large bonuses and promotions to rope in clients, Forex bonuses are usually not as popular as in other industries such as binary options trading, spread betting, and sports betting. Unlike gaming or gambling websites, Forex trading is a legitimate business idea that allows an investor to make informed decisions on the market and earn a stable and steady income. Although professional traders stay away from Forex bonuses, amateur, and intermediate traders may find bonuses to aid them in their journey towards building a successful trading portfolio.
What Are The Usual FX Bonuses Available For Trading
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 an even larger numbers, but a majority of mainstream brokers limit the amount of bonus to a 100% maximum. These bonus structures are usually dependent 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 an FX company. 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. No deposit bonuses start from $1 to as high as $1000; however, there might be several restrictions when it comes to withdrawing profits made through such bonuses.
Best and most trusted forex brokers in July 2020
All the brokers below are available in:
Trading instruments, or securities, are the various market types you can trade. Examples include CFDs, stocks, currencies, metals, and commodity futures.
Type of Brokers
Market Maker, DMA
Platform for trading Forex, analysing financial markets and using expert advisors.
Multi-asset platform for trading Forex and CFDs.
Trade online without downloading any software.
Wire Transfer, Bank Transfer, Credit or Debit Cards, PayPal
What Are The Advantages Of A Deposit Bonus Forex Trading
Higher Equity – 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.
More Leverage – 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.
Lower Initial Investment – 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.
Are There Any Drawbacks?
Bonuses have a few disadvantages that severely limit the freedom traders can have over their invested capital. For instance, almost all FX brokers require traders to agree to several terms and conditions before they become eligible 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. All deposit bonuses are added as a credit to a trading account, which cannot usually be withdrawn. Even if a trader manages to satisfy the bonus terms and conditions, it is up to the broker’s discretion to determine whether the profits made using the bonus money is eligible for withdrawal or not. Most illegitimate brokers use the ruse of bonuses to prevent paying out money to their clients, and bonuses are considered to be the number one culprit behind broker-client issues. 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 clearly goes against a trader’s primary instinct of making profits from virtually nothing, and the brokers understand this very psychology by forcing traders to make a deposit before 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.
Should I Opt For A Bonus?
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. Vip account 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.
Factors To Consider Before Choosing A Forex Deposit Bonus
Always read through the Bonus Terms & Conditions thoroughly.
If in doubt, seek help from the broker’s customer service department.
Never assume anything while accepting a bonus.
Not all brokers have the same terms and conditions for their bonuses.
Remember that a bonus is paid from a broker’s operating capital; therefore, the broker will try to get back its money from their clients.
Always demo trade before depositing real money into a live trading account.
Choose a regulated broker, as there is a lesser chance for a dispute.
Sit down with your Forex account manager and get precise information on the bonus trading conditions.
Create a sound trading plan to overcome the account restrictions as soon as possible.
List Of FX Brokers That Offer A Good Deposit Bonus
We have compiled a list of reliable and trusted FX brokers that offer a good amount of bonus without burdening their traders with impracticable terms and conditions. The following brokers have an excellent reputation in the industry and are committed to the welfare of their clients. Choose your preferred broker by comparing the deposit bonus, initial deposit, leverage, regulation, and payment options.