What Are Forex Draws?
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A Forex draw bonus is a unique bonus structure that offers a great opportunity for traders to win a good amount of prize money. The prize money, or the draw bonus, can either be used to trade the markets or can be withdrawn entirely after satisfying several trading conditions. Forex draw bonuses are different from conventional bonuses since such prize money is only available for clients who are offered the opportunity to enter the draw in the first place. Therefore, Forex draw bonuses are highly reserved, and there are only a lucky few who can claim such a bonus for their trading account.
Forex draws are not entirely familiar in the Forex industry, as there are only a select few brokers that offer the opportunity of winning prize money through a lucky draw. Most mainstream FX brokers resort to offering a traditional deposit bonus and offer prize money in the form of contest prizes and other promotional offers. Nevertheless, there are a few brokers that do provide a Forex draw bonus for traders who are feeling exceptionally lucky.
How Does A Forex Draw Bonus Work?
Traditional Forex deposit bonuses are usually available instantly for traders who make a deposit with an FX broker. In some other cases, traders can also enjoy a no-deposit bonus, but the basic concept of instant bonuses remains the same. Every trader can opt for a deposit or no-deposit bonus at the time of opening an account, and brokers offer a bonus without any reservations.
A Forex draw bonus, on the other hand, allows an existing client to enter the draw depending on their account standing and other factors. Typically, brokers will require their customers to have a verified live account, and should hold a predetermined amount of capital for a particular period to be eligible for the lucky draw. Forex bonus draws are held periodically, and winners are provided bonuses according to the prize bonus structure. Most brokers organize a lucky draw on a monthly basis, while others hold lucky draws on weekly, quarterly, or an annual basis.
Nevertheless, the prize structure of the draws also varies from broker to broker. While some brokers follow a grand prize scheme for a single winner, others break down the bonus money into different tiers to incorporate more clients into the bonus structure. Ultimately, the winner is picked through a lucky draw; hence, luck is of paramount importance for a Forex draw bonus.
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Can I Withdraw The Forex Draw Bonus?
Withdrawal of a Forex draw bonus varies according to the broker, and although some brokers allow their clients to withdraw their bonus freely, some brokers do tend to put several restrictions on them. For instance, brokers are known to stipulate a few trading conditions such as trading minimum lots, depositing more money, and holding a verified account among other factors before traders can withdraw the draw bonus from their trading account. Therefore, you should always check with your broker to understand their terms and conditions, and choose a Forex draw bonus wisely.
Are There Any Problems Associated With A Forex Draw Bonus?
Almost all bonuses have numerous problems, and bonuses are known to cause tension and needless issues between a broker and a client. Several illegitimate brokers also lure traders in by offering hefty bonuses, only to hold out on payments on the pretext of not satisfying the bonus terms and conditions. Inevitably, traders are bound to face quite a few issues by opting for bonuses, which although advantageous from an equity point of view, can also prevent traders from enjoying total control over their money.
Forex draw bonuses are mostly problem-free. When compared to traditional bonuses, draw bonuses are paid to the winner, and therefore, should be available without any serious restrictions. Forex draw bonuses are also relatively easier regarding trading conditions, and it is usually easy for traders to make a withdrawal of the bonus by making a few quick trades.
A Forex draw promotion does require a trader to have a verified account, and a trader should maintain a minimum capital to be eligible for a lucky draw. A trader can only enjoy a bonus if he has invested a certain amount of money at a broker for a particular period. Therefore a draw bonus deviates entirely from the concept of free money that is usually expected from deposit or no-deposit bonuses.
One of the biggest problems of Forex draws is the difficulty in finding a good and reliable broker that offers such a type of promotion. Even though countless lesser-known brokers adopt such a strategy, most mainstream brokers shy away from a bonus, and even if they do provide one, it will be along the lines of a small deposit bonus that might be inconsequential for the average trader.
So, How Do I Find A Broker That Provides A Forex Draw Bonus?
We have compiled a list of FX brokers that offer a Forex draw bonus, and we have carefully chosen the brokers according to their regulation, reputation, and overall trustworthiness. Ultimately, every trader should perform extensive research and exercise due diligence while selecting a broker. One brokerage might not be suited to all traders; therefore, traders should browse through multiple options before picking a broker for their trading needs. Ultimately brokers must not be chosen for their draw bonus alone, but an informed trader should understand all the aspects of a broker before depositing money into a live trading account.
Some Important Points To Consider:
- Choose a regulated Forex broker.
- Analyze the broker’s reputation in the industry and take careful note about how they deal with their clients.
- If you are looking for a bonus, always be aware of the bonus terms and conditions.
- Once you deposit money into an account, don’t let it lie dormant, or you would have to pay for dormant account fees, which will eat up into your capital fast.
- Do not lose your money through over-trading, especially if you are supposed to maintain a prescribed balance in your trading account to be eligible for a lucky draw.
How To Improve Your Chances In A Lucky Draw
Luck is always subjective, and lucky draw bonuses from FX brokers can’t guarantee a bonus. Since Forex draws involve a lot of entrants, it would be a good idea to open an account at multiple brokers to improve your chances of winning. In most cases, brokers don’t allow traders to open multiple accounts at the same brokerage, as only a single account can enter the lucky draw. Therefore, if the company finds you cheating, the broker has the discretion to withhold your bonus money along with your invested capital. You can indeed improve your chances of winning by entering all the lucky draws that the broker organizes at periodic intervals, and spending your time into finding other competing brokers that offer a similar bonus draw structure for its clients. Nevertheless, we can’t stress the importance of reading through the terms and conditions enough, as a trader must understand the rules of the game before depositing money with an FX broker.