The forex trading market is a huge one – it handles trillions of dollars in transactions daily; much bigger than any formal stock exchange anywhere in the world. With the right skill and dedication, anyone can make extensive profits trading currency pairs and other financial instruments.
But that’s hardly all you stand to gain. Because the ecosystem is so huge, with millions of traders participating in the market worldwide, there is intense competition between brokers for clients. To this end, they often try to attract new clients with juicy bonus packages.
However, the thing with these bonuses is that to the untrained eye, they can appear very confusing. In this article, we have pooled together as much information as we can in one place to show you all you need to know about forex bonuses.
What are the types of forex bonus programs?
There is a wide range of bonuses that are offered by forex brokers in the market. They are all designed to fit different purposes. From the welcome forex no deposit bonuses to reward traders who open a new account, to weekly promotions encouraging them to trade more. In this section, we explain what these bonuses are and how they work.
- Welcome bonuses
At the very top of the list are welcome bonuses. These are the bonuses that new traders receive when they open a trading account with a new forex broker. For these traders who are presumably only discovering forex trading for the first time, things can get quite confusing. And they might have to take a few losses while learning the ropes. If they have to do this with their own money, they might get discouraged and just give up. But with welcome bonuses, trading brokers extend a lifeline to these new traders, allowing them free capital to find their feet and establish their expertise.
- Deposit bonuses
- No deposit bonuses
And then, there are forex no deposit bonuses that have no such bounds and can be freely used. This is the ultimate in forex bonuses. They do not have any deposit requirements and simply get awarded to you when you open an account or carry out any other action that qualifies you for a bonus.
However, like the others, you should know that these bonuses also have varying terms and conditions. Some brokers might allow you to withdraw them, while others only permit their use as additional trading capital
To know which specific one your broker is offering, you might have to read between the fine print of the terms and conditions page. Alternatively, you can contact their customer service officers to confirm.
- Cash rebates
Another very popular type of forex bonus program is cash backs and rebates. In forex trading, there’s a lot of money moving around. Even when a trader isn’t taking on any spectacular losses, they still have to pay fees on their transactions. And depending on the frequency of their trades, these fees can add up. So one way that forex brokers like to reward their clients is by occasionally offering cashback and rebates.
- Special promotions
Finally, on certain occasions, forex brokers may roll out special promotions to commemorate certain events. A broker focused on the Malaysian market, for example, might roll out bonuses to celebrate Malaysia day with its teeming clientele. Also, they might have weekly or monthly, or quarterly promotions; all geared towards rewarding active traders and incentivizing increased trading activity.
Benefits of forex bonus programs
Is there much to say about forex bonuses, except the fact that they mean free money for you? Well, in this section, we outline exactly what benefits you can gain from forex bonus programs.
- More trading capital
Of course, the first benefit of forex bonus programs is that they allow you to control a much bigger trading capital. You might not think much of a 30% deposit bonus, but on $10,000, that’s $3,000 which is a significant amount that can be invested to earn even more money; all for free.
- Higher leverage
Leverage is an important part of forex trading. For some positions that you open, you might have to take credit from your broker in order to boost your earning percentages when the trade does go through. However, the amount of leverage that you can access often relies on the number of free capital you have saved up in your account. With some forex bonuses as extras, you can qualify for higher leverage ratios than you would normally qualify for; boosting your returns nicely.
- Pre-deposit testing
Bonuses, especially forex no deposit bonuses, are great for helping you learn the lay of the land when you’re starting. As a newbie, it’s easy to get confused by the flashing lights. So, to avoid losing money, you might want to stay out of the market. But, with forex no deposit bonuses you will not have to do that. With the little money that you get in bonuses for just signing up, you can test-run the system and see if it’s to your liking, before putting some of your own money into it.
Forex trading is a very exciting endeavor, and these bonuses make it even more interesting. However, you must be quite careful in navigating them to be sure that you understand whatever the terms are before you accept any bonuses. We hope that from this article, you now have a bit more understanding of how forex bonuses work.
If you want to get into the best forex trading experience, complete with juicy bonuses, superb services, interesting financial instruments, and excellent spreads, why don’t you open an account with us today?