Forex bonus is a nice way to get some additional capital above what you have initially deposited. Many traders often make the mistake of looking just at the forex bonus offers without paying attention to the type of bonus and the trading requirements that come with it. If forex bonus is something that interests you, here are three things to know about them.
1. Types of forex bonus
Forex bonus comes in two forms; the no-deposit bonus and a deposit bonus. They can go by different names, but the basics are the same. With a no-deposit bonus you are given free real money to trade forex. This is usually done after your verify your account information and in some cases, validate your account details by submitting verification documents. You can trade the no-deposit bonus without having to make a deposit, but you cannot withdraw the funds unless you make a deposit and trade a certain number of times.
A deposit bonus means that the broker give you a bonus based on your initial deposit. For example a 30% deposit bonus means that when you deposit $100, the broker gives you $30 in bonus. Of course, you can use this money alongside your trading capital (which comes to $130), but you won't be able to withdraw this $30 bonus unless you meet the trading criteria.
2. Always read the forex bonus terms and conditions
It is essential that you take the time to read the trading conditions for the forex bonus that you claim. Many traders fail to do this due diligence and end up complaining about the forex broker. A lot of inconvenience can be avoided when you read the terms and conditions. Most forex brokers typically require trading a certain volume. It can be 5 times the bonus amount in trading lots. For example a $30 bonus will mean you will have to trade 60 lots (5 times 30) before you can withdraw the bonus or the profits. The rules vary from one broker to another so always read the fine print.
3. Do you really need a bonus?
>Forex bonus can be good and bad. It can be good because claiming a no-deposit bonus can be a way to test the broker's trading conditions. You can also claim the no-deposit bonus just to trade with real money and not risk anything at all (except your information of course).
On the other hand, claiming a deposit bonus will lock in your initial capital as well. Think about it for a second by going back to the example in #2. Can you really trade 60 lots with a trading capital of just $130? It is next to impossible. Chances are that you are more likely to lose your entire capital than take any advantage of the bonus.
The influence of forex bonus entirely depends on the trader. At Allfxbrokers.com you can see a list of the forex brokers and the types of bonuses that they offer. If you find a particular bonus to be attractive, click on the ‘Read More’ button to know more on the bonus terms and conditions and how you can claim the bonus.
Last but not the least, always be careful when you trade a forex bonus and claim the bonus only when you are fully aware of the terms.