Forex Broker Bonus
Best FX Broker Bonuses in 2021
Some brokers offer sign up bonuses or discounted trades to encourage new customers to try them out. Using a forex bonus can also be helpful when testing out new brokers without depositing more funds than you’re comfortable transferring to a new broker.
Forex bonuses can also be helpful to traders without the necessary funds to make a large deposit but still want to make an impact with their trading efforts.
Keep in mind that no broker gives away free money. Forex bonuses are typically provided by increasing your trading account equity, effectively making it like you’re getting higher leverage. Before you accept a bonus from any broker, be sure to read the terms and conditions. Terms and conditions can differ between brokers, and certain restrictions may apply.
Providing you understand the advantages and disadvantages of using forex bonuses in your trading accounts can be useful in some trading strategies.
Up to $5,000
*10% Welcome bonus
*Welcome Bonus is not eligible for clients under FCA or CySEC regulators.
Up to $10,000
**based on deposit amount
Up to $5000***
***Trading Bonus is not eligible for clients registered under Trading Point of Financial Instruments Ltd.
Receive a one-time 25% deposit bonus
$0 commission on your first 20 trades.*
*$0 Commission is only available to clients that register under ASIC regulator.
$123 welcome bonus*
Like to add your Broker?
*/**Conditions apply, see broker for complete details.
Different Types of Forex Bonuses
Almost all forex brokers offer incentives to encourage traders to start and continue trading with them. The most common type of incentive offered is a forex bonus.
As forex brokers make money through commissions and spreads, they use bonuses to encourage trading activity, ultimately increasing trading volume and revenue. Hence why they offer bonuses to influence traders to place large trades or trade more often. Due to the high level of competition among forex brokers, different types of FX bonuses are used to lure inexperienced traders.
Some traders prefer brokers offering numerous incentives because it gives them a chance to trade without investing much of their own money.
To get your FX bonus, all you need to do is sign up for the website, and the bonus will be credited to your account. Many brokers also provide selective offers to those who have already registered. Before choosing a forex broker, always research the bonus offers to make sure you’re getting the best deal.
Bonuses can come in different forms. The most common type of forex bonuses are:
- Deposit bonus
- No deposit bonuses
- Convertible bonus
- Loyalty bonus
When you make a real money deposit in your trading account, the broker gives you a deposit bonus, which is usually a fixed amount or percentage of your deposit value.
Most forex brokers maintain multiple tiers to encourage traders to deposit more to receive larger bonuses. Some forex brokers only provide a deposit bonus for the first deposit, while others provide a bonus every time you deposit money.
While you can’t withdraw the bonus back to your bank account or payment method, you can use it for trading and opening larger positions. Whatever the conditions of the bonus, you should always be able to withdraw your profits.
In some cases, if the bonus is just a small amount, like $30, it might be possible to withdraw it after placing one or two trades.
No deposit bonus
Many forex brokers offer a no deposit bonus to new customers registering for the first time. No deposit bonuses are sometimes called welcome bonuses and are normally only available for new customers.
As the name suggests, a no deposit bonus is offered without having to make a deposit. Typically you cannot withdraw the bonus, but you can keep any profit you make. Therefore, if you lose, you don’t lose any of your own capital.
No deposit bonuses are great for testing a new broker without risking a penny of your money. Unlike a demo account, you can use this bonus to trade on a live account and have the chance to earn a profit.
When a broker offers either a deposit bonus or a no deposit bonus, it may also be considered a convertible bonus. Normally bonuses cannot be withdrawn. However, a convertible bonus means you can convert the bonus amount into your trading account balance that you can withdraw.
For example, the bonus conversion could be if you trade one lot, you can convert $1 of the bonus into $1 of balance. Meaning your bonus is decreased by $1, but your account balance is increased by $1.
Convertible bonuses encourage you to trade so you can withdraw the awarded bonus.
Apart from attracting new customers, forex brokers are also interested in retaining their loyal clients. If you’re a frequent trader, you may expect a loyalty bonus from your broker, which may be advertised as a VIP account, cash back or a rebate.
VIP accounts offering loyalty bonuses are usually only available for frequent traders. They are profitable for traders who trade regularly but can be harmful if the incentive pushes you to trade simply to earn a bonus rather than profit from the market.
How much you are rewarded can depend on your trading volume or how much you deposit to your account in a given period.
Are Forex Bonuses Risky?
While a Forex bonus may be attractive, you should not choose a broker based on the FX bonus offered alone. Unregulated brokers often use the temptation of unusually high bonuses to lure traders to their company.
Most of the bonuses come with numerous terms and conditions, which can be confusing. Misunderstanding the rules can lead to your account being frozen and profits deducted. Brokers are very cautious about people manipulating their offers and can arbitrarily punish you.
Forex bonuses can mislead you to think you have more funds than you really have. In some cases, applying a bonus to your trading account can lead to more risk, causing you to lose your initial capital faster.
However, if you are willing to put in the time and effort, you can effectively use the bonus schemes offered by many forex brokers to your advantage to reduce risk and grow profits.
More on Forex Broker Bonuses
Almost all forex brokers offer incentives, in terms of a Forex bonus to encourage traders to continue trading with the platform.
Forex brokers make money through commissions and spreads.
That is why they offer bonuses to persuade traders to increase trade volume. Due to the high competition among forex brokers, different types of FX bonuses are lured to attract inexperienced traders.
In order to get your FX bonus, all you need to do is sign up for the website and bonus will be credited to your account.
Many brokers also provide selective offers to those who have already registered with the website.
Before choosing a forex broker, always research about the bonus offers.
FX Brokers that offer Deposit Bonus
FX Brokers that offer a No Deposit Bonus
So, if you are a regular trader, you can expect VIP bonus from your Forex brokers. Most brokers provide this bonus based on invites.
Depending on your trading volume, you will get different types of FX bonus, so that you can continue to trade more.
Sometimes, these Forex bonuses are available only if you deposit a specific sum of money or complete a specific number of trades.
VIP accounts are only available for regular traders. They are profitable for traders, who like to become professional traders.
Some forex brokers provide FX bonus offers only after you complete certain actions.
This could be anything like completing a few trades, trading for a few days consecutively or even making a large deposit. The pending bonus will be available after you complete the task.
This type of bonus is suitable only for traders who trade frequently. Otherwise, you might miss these time-sensitive offers.
While a Forex bonus may be attractive, you should not choose a broker based on the FX bonus offered alone.
Most of the bonuses come with numerous terms and conditions. You can’t withdraw your bonus directly to your bank account.
However, if you are willing to put the time and effort, you can use the broker sponsored bonus effectively to build your wealth by trading forex currencies.
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