The Best Forex Bonus Packages For Your Investments
Forex trading grants an incredible opportunity for investors to diversify their investment portfolio and to take advantage of the insane amount of volatility and leverage to reduce their capital outflow. Forex and CFD trading are the only leveraged product in the entire world that enables traders to start with a small trading capital. Most modern brokers offer leverage to the tune of 1:100 to 1:3000, which allow traders to open positions ranging from $10,000 to $300,000 using just a small initial investment of $100.
While we do not endorse using a high amount of leverage due to the obvious risks in the market, a majority of traders use a significant amount of margin in the markets with varying results. Professional traders use high leverage to keep their Forex investments to a bare minimum, which in turn enables them to use their funds for other investment opportunities. Forex and CFD trading is also an excellent hedging opportunity for traders that wish to hedge against currency fluctuations or any unusual moves in the commodities market.
A trader’s top priority is to increase his starting capital through calculated risks. Profits are not easy, especially when the markets don’t conform to the technical or fundamental factors at play. Therefore, traders look for innovative ways to increase their trading capital without actually risking their money in the market. The first and foremost option for traders are to use Forex bonuses that offer an incentive to traders to increase their account equity well before they start trading. A Forex bonus is a unique offering in the market that matches a fixed percentage reward for depositing a minimum amount of money into a trading account.
Normal Forex bonuses start from 5% of the deposit amount, which may increase up to 200% deposit bonuses from certain brokers. Some of the best Forex bonus offerings average around 10% to 50% of the deposit amount, which should be sufficient for you to increase your account equity by a fair margin. Even though a majority of traders highly prefer to receive a bonus for their investments, one should be extremely careful about the bonus terms and conditions, which may affect their trading freedom and their ability to control their trading capital.
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|XM||$30 No Deposit Bonus||$5||
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The Different Types Of Forex Bonuses That Offer You Free Money
Although traders would like to consider a Forex bonus as free money, it is offered more like a promotion that is provided to traders as a convenience for a price. Forex bonuses are mostly available as deposit bonuses or trading credits, which require a trader to deposit a minimum amount of trading funds into their live trading accounts. Most brokers stipulate a minimum deposit of $100 to be eligible for a bonus, but some brokers may offer bonuses without any minimum deposit requirements. Here are some of the popular Forex bonuses available in the market:
- Licensed by CySEC, ASIC & IFSC
- XTrade Pro Platform
- The Smartest Bonuses
- Demo Account
- Just One Type Of Account
- Forex Bonus On Your Account Deposits: A deposit bonus is the most basic type of bonus that is provided for traders according to their account standing. Most brokers reserve deposit bonuses for new clients by offering an attractive bonus scheme for all new deposits. New account deposit bonuses are among the highest Forex offers in the industry, with all subsequent deposits only qualifying for a nominal bonus. Several brokers may even avoid providing bonuses on all recurring deposits due to cost concerns; nevertheless, the first deposit bonus should be sufficient for most traders to gain an advantage in their trading strategy. Deposit bonuses are direct in nature and are mostly available for almost all traders opting for a bonus.
- Seasonal Forex Offers: Seasonal Forex offers are promotional campaigns that are initiated by leading Forex trading companies as part of their marketing campaigns. Most mainstream FX companies usually offer bonuses and rewards during holiday seasons, or during news events of global importance. It is more indirect in nature, and traders must be subscribed to a company’s newsletter to be able to receive timely information about such bonuses. Seasonal Forex bonus offers may not be as substantial as regular deposit bonuses.
- Forex Bonus For Large Accounts: Even if regulated brokers may be apprehensive about providing bonuses to its clients, various companies may entice institutional clients and large investors into opening an account with the company by offering an excellent bonus package. Large investments usually mean that a trader is willing to invest a significant amount of money in the market, which in turn increases revenue for the company in terms of spreads, commissions, SWAPs, and other fees. All client funds are kept in segregated bank accounts, which earn additional interest that is usually not passed on to a trader.
- Bonus For Switching Forex Brokers: If you are not satisfied with your current Forex broker, other brokers may offer you attractive bonus packages to help you make the switch. Once again, these kinds of bonuses are similar to new account deposit bonuses, but brokers may be able to offer you customized bonus percentages according to the magnitude of your account equity. Brokers understand the potential benefits of large trading accounts, which can help you to switch to a broker that offers the best trading bonus.
- Forex Bonus Without Making A Deposit: No deposit bonuses are gaining enormous popularity among traders, which essentially allows them to trade the FX market without any initial investment. Although these bonuses may not be withdrawn, they are certainly better from a trader’s perspective to learn the fundamentals of the market without risking their money. No deposit bonuses are far better than demo accounts, as these accounts provide a real alternative to a live trading account. Most no deposit bonuses have strict trading conditions and restrictions on withdrawals, but some brokers may allow their clients to withdraw the profits after satisfying several bonus trading conditions.
- Forex Bonus Offers From Affiliates: Forex brokers are known to promote their services through numerous means, which include introducing brokers and affiliate marketers. FX brokers pay extra care and attention towards their affiliates to ensure that they keep sending in new customers for added revenue. Therefore, it is possible for brokers to offer exclusive bonuses to clients who are referred by company affiliates or introducing brokers, which can help traders to increase their trading capital without any additional promotions.
- Forex Bonuses Through Reward Points, Loyalty Status, & Rebates: Apart from the bonuses on deposits, brokers may provide additional incentives for existing traders in the form of loyalty points and rewards. Some brokers offer gifts such as smartphones, tablets, and electronic appliances, while other brokers offer cash rebates or cash bonuses as trading credits. These bonus programs are usually available with most Forex companies and are provided on top of any other promotions that may be applicable. Leading Forex brokers have unique rewards system to ensure that their clients do not switch their trading accounts to any other competing brokers.
Why Do Some Brokers Avoid Giving Out A Forex Bonus?
Bonuses may not be as transparent as they may seem on the outset. Brokers lure clients into opening an account with the promise of extravagant bonuses, but traders don’t often realize that several pre-existing terms and conditions bind traders from using their trading account freely. Every broker works on a budget according to its business plans, and there are no other visible advantages to granting a Forex bonus other than to entice traders into making a deposit. Even a regular 10% bonus on a $1000 initial deposit is worth $100, which can quickly escalate to a huge amount of money as and when a broker accumulates more clients. If a broker manages to acquire 1000 customers, with each trader depositing $1000 for a 10% bonus, the broker will have to pay $100,000 in bonuses alone, which is a significant amount of capital outflow.
Therefore, to prevent any bonus misuse, and to ensure that traders don’t deposit money into a trading account with the sole intention of receiving a bonus, brokers ask their traders to accept various terms and conditions. Bonus terms include restrictions on withdrawals, the minimum number of trading lots, and reservation of bonus per IP or household. There may be other bonus terms and conditions that may prevent traders from enjoying complete freedom of trading, thereby enabling the broker to curb any instance of bonus abuse.
Traders may feel obliged to trade beyond their means in order to satisfy the bonus terms and conditions, which may force them into deviating from their successful trading strategy. One of the major drawbacks of accepting a bonus is the minimum number of lots that are needed to be traded within a calendar month. Therefore, brokers often profit from their clients’ losses, which further add to trader woes. For this very reason, the best Forex brokers in the market do not support the concept of Forex bonuses to prevent any conflict of interest with its clients.
Top FX brokers are acutely aware of the numerous drawbacks and problems of offering bonuses, which means that they concentrate their efforts on providing an excellent quality brokerage service, rather than providing bonuses to keep clients happy. More often than not, reputable brokers have a better quality of services than those that provide an insane amount of bonuses. Therefore, as a trader, your primary focus must be on choosing a reliable and top-quality broker, without succumbing to the appeal of a Forex bonus for increasing your trading capital.
What Are The Other Forex Offers That You Can Sign Up For?
Other popular Forex offers in the market include trading competitions, news trading contests, analytics leader board, and social trading bonuses. Several leading Forex brokers organize periodic contests that offer real prize money for winners by competing against other leading traders in the market. Prize money can be as high as $1,000,000, which can be mostly withdrawn without any major restrictions. Other smaller contests can award prizes such as electronic gadgets, popular vehicles, gifts, and even trading credits, which do have some basic terms and conditions.
Forex trading has become an extremely competitive industry that sees the influx of countless brokers on a daily basis. Therefore, several high-quality brokers are finding it hard to keep up with the competition without offering any serious bonuses, rewards, or Forex offers to keep their clients interested. Therefore, even though mainstream brokers avoid bonuses, they may offer indirect promotions such as contests so as to keep their services fresh and appealing to the modern trader.
Make Sure You Avoid These Mistakes While Choosing Forex Bonuses
If you are keen on opting for an FX bonus, make sure that you don’t succumb to any broker-induced trading conditions that may limit your freedom while using your trading capital. Here are a few mistakes that are commonly associated with bonuses:
- Accepting a bonus that puts a freeze on your trading capital – Once you receive a bonus, brokers might ask you to sign an agreement that gives them the right to freeze your entire trading capital. Freezing your capital allows your broker to hold on to your funds as long as they want, and some brokers may even outright refuse to initiate your withdrawal request, even after satisfying their terms and conditions. Be careful against brokers that specifically mention about any kind of restrictions on your trading account in exchange for a bonus.
- Accepting Forex broker bonuses that have stringent trading conditions – Brokers will require their clients to transact a minimum number of lots within a brief period of time for satisfying the bonus terms and conditions. If a trader is unable to accumulate the required number of lots, the broker may charge penalties by deducting a prescribed amount from the trading capital. Other brokers might simply choose to go after their client’s entire trading capital as they may deem fit.
- Not reading through the Bonus Terms & Conditions – Perhaps one of the biggest mistakes in accepting a bonus is the failure to read through the bonus terms and conditions. Regardless of how exciting and attractive a bonus package may sound, you should make it a priority to read through them carefully, before signing a contract. You may be surprised at how brokers trick their clients by specifying impossible trading conditions, which virtually guarantees all of your money to the broker.
- Trading Forex without prior knowledge or practice – The primary reason behind bonuses is to attract new traders into the volatile currency markets. Market maker brokers are highly influential in the retail trading market by offering promises of instant riches and attractive bonus schemes. Non-regulated brokers often make a significant chunk of money from newbie traders that are looking for ways to generate instant riches from the FX market. More than 90% of traders fail during their first few years in Forex trading, which is a great money making opportunity for retail Forex brokers. Therefore, never deposit money in a trading account without learning about the risks in the financial markets and practicing your skills on a demo account.
You may choose the best Forex bonus once in a while to boost your trading capital, provided that you understand all the risks of accepting a bonus. The best FX companies will always be transparent about their bonus terms and conditions, which should help you to stay safe against the numerous bonus scams in the market. Nevertheless, you must be preemptive in your efforts while choosing a Forex bonus that does not have any conflict of interest with your trading capital.