Are Forex Forecast Bonuses A Legitimate Way Of Increasing Your Account Equity?

How Does Forex Forecast Bonuses Work?

Forex forecast bonus is different to a traditional bonus structure that makes the trader the center of the attention. Unlike deposit bonuses, forecast bonuses are assured only to the winner of such a contest organized by the broker; therefore, it depends on a trader’s skill to correctly analyze and predict the movement of the markets.
FX brokers typically host contests for its clients to predict the price of an asset for daily, weekly, monthly, or yearly periods. All existing company customers can take part in these contests subject to the broker’s terms and conditions for entry and participation. Once entered, the trader will have to make an educated guess about the future price of an asset, such as currency pairs, commodities, indices, or stocks, and submit their analysis to the official contest page.
The broker will set up an end date for the competition, which will be the deadline before which the traders should submit the price of an underlying asset. Upon reaching the end date, the broker will award the winner who has correctly predicted the price of the asset through cash bonuses or other rewards. If multiple entries are eligible for the win, the broker might split up the awards or choose the closest winner according to the company’s forecast bonus terms and conditions.
It may also happen that traders might not be accurate in their predictions of falling short or overshooting their assumptions by a fair margin, in which case, the closest prediction wins the prize. In most cases, brokers end up choosing a single winner for their forecast contests, but brokers may also hold contests with multiple winners by including more cash prizes for more participants.