Bonuses And Incentives
The world of Forex trading is very competitive. There are so many brokers to choose from it can be hard to know which one to choose. With so much competition, brokers have to make sure that their offering is exciting and enticing. To do this, they incentivise you with bonuses for opening an account and making a deposit.
There are lots of different deals and offers, and they vary greatly. Not only do the types differ but also the amounts. With one broker you may receive a fixed fee whereas others will offer a percentage of the deposit that you make. Then there are bonuses for the volume you trade and for continuing to make deposits.
But how do you choose your broker? For many, the bonus is an essential criteria and can be the deciding factor. We have tried and tested every Forex broker to make sure that we only bring you the best and as bonuses are one of the critical criteria that we review you can be confident that we present you with the best that the industry has to offer.
In this article, you will learn:
- The different types of incentives and bonuses
- How a bonus can help you with your trading
- Which types of bonuses you should choose
The Types of Forex Bonus
There are many different types of Forex bonuses available. More commonly you will see a welcome, deposit, or no deposit bonus when you visit a Forex Broker site. We review and recommend brokers based on these main types however, there are much more available. Some brokers pride themselves on the fantastic incentives that they offer. Here's an explanation of what's available:
When you open a Forex trading account and make a deposit, you often receive some free money. This can be either a fixed fee or a percentage of your deposit. The deposit bonus has to be traded several times before it can be withdrawn.
No Deposit Bonus
Get a fixed deposit reward without making a deposit. This type of incentive is perfect for new traders that don't want to risk their own money while getting used to trading. Sign up to an account, receive your bonus and start trading before you make a deposit and start trading with your cash.
This is great for more experienced brokers or for those who plan to trade in large volumes. The offer works like a cashback as it offers cash rewards based on the amount you trade.
A reward bonus is given as an acknowledgement of completing specific requirements. It isn't always cash however and can sometimes be training courses, books or other tools to help you improve your trading experience.
What is The Ideal Bonus
The ideal offer depends on what you are looking for. Different people have different requirements. If you are a novice trader then we would recommend that you look for a "no strings attached", no deposit incentive. This will enable you to get started on your Forex trading journey without losing your own money and becoming disheartened watching your balance go down as you make your initial mistakes.
You may not make many mistakes, and your trading may be successful from the outside but like anything it takes practice to become good at something. Now if you are a more experienced trader then your requirements may be different. If you are not concerned about the money going down, because you know it goes up as well then you may be better off looking for a broker that offers a volume or a cashback deal.
Deposit bonuses are also good, especially if you can find a broker that offers 100% match. You may have different priorities, and you may prefer a particular site because of the ease of use. In these cases you won't be so bothered by the bonuses on offer if it is though it is worth checking out who offers what.
How a Bonus Can Help
Bonus money is great if you are new to trading. From the deposit bonus to the no deposit bonus, it can be used in several ways to help you with your Forex trading including:
There are terms and conditions attached to these bonuses which you should be aware of. The money has to be traded a certain number of times before it can be withdrawn, this is often the equivalent to thousands of dollars. Sometimes brokers will insist on $10,000 being traded for every dollar.
There are other rewards offered by some brokers that don't include cash. These rewards are often in the form of access to education tools and even books on trading. While they may not have the same appeal for many as a cash bonus, they are equally as valuable in helping to improve your trading skills. Some brokers also offer loyalty rewards which convert to discount or trading funds.
It is essential to choose the bonus which suits you based on your level of experience and what you want to achieve. For new traders the no deposit bonus is perfect while for more experienced traders they prefer a generous deposit bonus.
Deposit bonuses are good especially if you can find a broker that offers 100% match.
How we Find The Best Deals
We find the best deals so that you don't have to. Our experienced team are made up of successful traders and financial experts that have spent years working in this industry. They trawl the markets testing the various Forex brokers and putting them through their paces. We don't recommend just anyone. Every broker has to pass a rigorous analysis and trading test for us to be comfortable to put our name to it.
Each site is tested for licensing and regulation, ease of use and their mobile trading features. One of our critical criteria is bonuses. You will see our checklists on each of our recommended broker ratings. We rate them based on how they score for each category, bonus being one of them. If this is what you are particularly interested in then you can compile a shortlist from our recommended brokers and decide which of the shortlist you wish to open an account and start trading with.
With so much information available to you from our experienced and diligent experts, you can start trading with your chosen broker with peace of mind that your money is in safe hands.
What different types of bonuses can I get?
There are many types of offer from various Forex brokers. These range from no deposit starter deals with volume bonuses for more experienced traders.
Can I withdraw a bonus for real money?
Often there are strict stipulations applied. You can't just open a Forex trading account, receive a bonus and then withdraw it. They are usually not withdrawable, but the profits can be withdrawn.
Do I need a special code to claim a bonus?
This depends on where you saw the offer advertised. If you go directly to the website and open an account then usually all you need to do is open the account and verify your email address.
Can I use my bonus to trade all pairs?
Different brokers will have different stipulations, and you should check out the terms and conditions before trading to ensure that you can use the money to trade on your desired pairs.
How do I use a bonus on a mobile or tablet?
Using a smartphone or tablet should be no different to using a laptop or PC. You sign up to your account, satisfy the verification process and then start trading.
Jessica has written for us for 5 years and offers a unique perspective due to her having worked in the financial industry internationally. In fact, Jessica has worked in a staggering 8 countries including Germany, China and the USA.