You might be working in your daily routine while an ad pops up in front of you telling you to sign up and receive a forex bonus. There are instances when individuals who are browsing the internet encounters forex brokers bonus ads. While it is prompting you to create an account, there are some confusions that do run in your mind. Many individuals think what these bonuses actually are? Are they fake or you get legitimate money to trade with? Why the platforms are providing you these bonuses? What are the different types of forex bonuses that you can obtain as you sign up? We will look at all these things below.
What is forex bonus?
Forex bonus refers to the bonus that you are given by a platform when you sign up for the forex account or are trading with them. It is money given to you by the platform so that you can place your trades. In certain instances, you are given the amount according to your deposit while other times the platform may give you money as sign up bonus. Regardless of which one it is, one is able to trade with the help of the money attained in the form of a bonus. You can make real money with it.
However, the notable thing is that many companies won’t allow you to withdraw the money that you have received in the form of bonus. For instance, you sign up with $100 and get another $100 as bonus, you won’t be able to withdraw the total of $200. However, you can certain trade with that $200.
In case that you lose the amount you receive in the form of bonus, you end up with nothing and at the same time you will not owe anything to the platform. Sounds like a win win situation, isn’t it?
Why forex bonus is given?
There are three reasons why a forex bonus might be given.
First up, you have the sign up and welcome bonuses. These are there to encourage an individual to sign up for an account and put forward a step into the forex industry. Then, you can use these bonuses as a way to trade and make money. So, you get a taste of what it is like to trade in the market. Moreover, you can evaluate and see whether you win something or not, knowing that is this the industry and work that you were looking for or not.
Many individuals don’t give forex a try because they fear what if they would lose their money. However, with the help of bonus you receive, you can place trades without fearing to lose anything. In case you win something, you can keep the winnings all to yourself. And if you lose the money, you won’t owe anything to the forex platform. So, it takes away the fear and allows you to trade freely and see what it is like to be a forex trader.
Different types of forex bonuses
There are a number of different types of forex bonuses that are offered by various brokers.
The forex deposit bonus is directly linked to the deposits you make into your account. Generally, these bonuses are available for all the clients. Whether it be the first time you are adding money to your forex account or it is the 10th time you are funding the forex account with your money, with every deposit you get this bonus. It is generally a certain percentage of what you will deposit in your account. So, the bigger the deposit is, the more money you will be able to receive in the form of a bonus.
No deposit bonus
The deposit bonus worked with the deposits that you make to your accounts. However, there are some no deposit bonuses too which are legitimately offered to you by numerous platforms. This type of forex bonus means that you are receiving a gift from the platform. They would give you money for trading without any restrictions and limitations. There are no strings attached to it. You can trade and win the way you like. You won’t have to risk your money or invest on your own. The only restriction which might be placed with this bonus is that you cannot withdraw the actual bonus from your account.
The welcome or sign up bonus is the money given by these platforms to their new customers. When you create an account with a certain platform that is offering the sign up or welcome bonus, you will be given real money to trade. One does not necessarily have to fund his account because the money would be deposited directly by the platform to your account that you can use to place your initial trades and feel what it is like to be in a real forex market where you are trading.
However, the welcome bonus differs from platform to platform. Some of them will give you no deposit bonus while others would add the stipulation of a deposit with it. It generally varies according to the policy of the broker.
VIP and regular customer bonus
There are individuals that are old traders who are actively working on a particular platform. When you become a loyal client, the brokers tend to award you with some bonuses. The VIP or regular customer bonus is a prime example of how the brokers value their old clients. And as far as the VIP bonus is concerned, it might be given to the customers who sign up for a particular account i.e. VIP or exclusive accounts.
These are also known as the pending bonuses. They are initially granted to you but certain actions and limitations are associated with it. Until the individuals are not done with the linked actions, you are not able to use these bonuses. Often you will be asked to place certain number of trades, refer a friend, or do similar other tasks if you are to avail these bonuses. While these are all legitimate, however, the fact that you will be asked to do numerous things will make it tough for you to avail these and thus not the bonuses that individuals often look forward to.
Reload or recharge bonus
Similar to the forex deposit bonus, the reload bonus is the one where brokers give you a chance to reload your account and get a certain percentage of bonus on it. One is given the chance to deposit the money i.e. reload the account and receive up to 50% on their deposits. These are great for old traders who have been in the market for a while and are trading most of the time.
So, this is all you need to know about forex brokers bonus, what it is, why it is given, and what are different types of bonuses on offer. Make sure that you know what type of bonus you are given, how to use it, and don’t just rush into the market and waste it. Be smart and utilize it carefully as you would use your own money when placing the trades.