Any amount is given to the new client by the broker to encourage and attract towards trading for generating high volumes, and maximizing the broker’s revenue is a forex bonus. This bonus is given directly or indirectly either by giving free money or by making special discounts. In this article, we will increase your knowledge about the forex bonus. You will discover how it works, what is required to avail it, and what are the limitations you must after interacting with them?
How does it work?
Many people think they can avail forex bonus without depositing money. But it is not a truth. Forex bonus is like a buy one and gets one offer. You have to inject some amount to qualify for this bonus. And mostly this amount is not affordable for everyone. Rarely, you don’t have to pay any cash for a deal or promotion. Sometimes many brokers don’t offer free money, but it is only to advertise and attract customers through these promotions. Remind it you cannot withdraw the cash of bonus money.
Types of Forex Bonus
There are many types of forex bonuses. We want to clear one thing here that the forex bonus is not to privilege the customers. These deals are to increase the footfall of customers to the company. Most of these bonuses or discounts are for the corporate and professional account holders. Have a look at some of the most famous or common types of these bonuses.
Deposit Forex Bonus
When you make an initial deposit in your account to open it, some forex brokers provide you some additional money for trading that is called the initial deposit. You can withdraw after earning a profit.
Per Capital Forex Bonus
Some brokers provide you a bonus based on the account worth. It is per capital Bonus. For example, if you deposit a lump sum amount like $10,000, forex brokers give you $1000 for trading. But these are available to the high volume accounts.
Per Trade Bonus
Many traders rely only on this forex business. So they invest more money and make large revenue-generating trades. In this case, forex brokers provide a discount on some trading commissions. It means the brokers do not deduct a commission from every trade execution. To enjoy this bonus, you must meet the requirements of high revenue or profitable trading in a day or month.
Some brokers provide a welcome bonus just as you open your account. It has three subcategories.
- When you make an initial deposit, you may receive some additional money to trade.
- After an initial deposit, they might not provide cash but discounts on trades for some days or a month.
- Some brokers offer a no deposit bonus to you for trading. When you open an account, some brokers provide an amount that you cannot withdraw but can trade. After utilizing it, it is your choice if you want to proceed with the broker or to close your account. In case if you lost the bonus money, the broker cannot ask you to return it. You also have another option to claim and withdraw the profit earned from this bonus or to invest it for serious trading in your account.
Limitations on Forex Bonus
When you avail of the forex bonus, it does not mean that you can enjoy other services along with them also. However, these limitations vary from broker to broker. Look at the restrictions while using the forex bonus.
- When using or trading on a bonus, you cannot use every asset. It is the worst thing we found about the forex bonus.
- Hedging is an essential and frequently used risk management strategy. But you cannot hedge while using a bonus.
- Scalping is also not allowed during the usage of any bonus. Scalping is another risk controller.
- You have to make a lot of trades while using per trade bonus. If you are unable to reach your goal, you can no longer use this bonus.
- Expert advisors are also not allowed when you are trading with this cash. Even if you interact with a discount bonus, you cannot use an EA.
- You cannot ask for more leverage or even average. The FX brokers claim that they have provided you extra money. So there is no need for a margin. We also do not suggest you enjoy high leverage. But every broker does not restrict for availing leverages. But most of them don’t allow this.
Our View on Forex Bonus
In our view, forex bonuses are tools for the advertisement of the brokers. Forex brokers enjoy more benefits than a trader who get this bonus. Some scammers also make frauds to the people by offering these promos are only a source to make money. Moreover, the limitations after these bonuses create more difficulties for an average and retail client. We advise you to use these bonuses very carefully.
For reading useful articles on forex trading, visit our website, Forex-scams.com
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