The world of Forex trading is not void of aggressive advertisement techniques. We are referring to are attractive deposit bonuses that may not be as beneficial as traders think.
Moreover, if you’re a beginner trader, you may fall in love with a $50 bonus on a $50 deposit – because that’s doubling your investment with no effort whatsoever!
Therefore, to avoid falling into a trap here’s everything you should know about Forex deposit bonuses!
What is a Deposit Bonus?
As the name implies, a deposit bonus is a bonus offered to Forex traders after they have deposited a certain amount to their Forex account. For example, the popular Forex broker markets.com gives a 35% bonus with every deposit made by a trader, but their minimum deposit is $250.
However, it’s not always this easy when it comes to deposit bonuses.
Types of Deposit Bonuses
- No Deposit Bonus – This type of bonus is rare and only available to new traders when registering on specific platforms. It is the one exception from the law of deposit bonuses as you don’t need to deposit anything to receive it.
- Common Deposit Bonus – This is the most common type of deposit bonus where you get a certain amount or percentage for every deposit you make.
- Welcome Deposit Bonus – This is similar to the no deposit bonus and is also only offered to new traders. However, it does require a deposit, and you’re no longer eligible for it once you start trading.
Terms & Conditions of the Deposit Bonus
But why did we said that a trading bonus is not always easy to understand?
While it is pleasant to notice the bonus in your trading account, you may not actually have access to it. Here’s why:
- Some bonuses become active only after you complete a trade. In some cases, the trade is also required to have a specific value – most likely to balance the bonus offered. The trade required to unlock your bonus may very well only leave you with the deposit funds.
- Other bonuses have the trader complete multiple trades. As such, there’s the possibility that they will have to make a deposit again and complete more trades before unlocking the deposit.
- Some bonuses require a certain amount of successful trades to be completed or a certain amount of funds to be won.
- There are also bonuses that the trader can freely use, but can only be withdrawn after, for instance, a certain trade volume is completed.
The Bottom Line
As you can see, most deposit bonuses tend to come with explicit terms and conditions. However, reputable traders who offer around 30% of your deposit as a bonus usually don’t hide the bonus behind prerequisites.
This is where a broker’s reputation comes into play. Reputed brokers won’t feel the need to aggressively promote their bonuses or make them look better than they are.
On the other hand, brokers who lock bonuses behind requirements will often only talk about their bonuses when advertising themselves!