Bonus for Forex Trading

Choosing the right regulated broker is critical in ensuring a fruitful trading experience. There are many things you should think about before narrowing down your preferred list of reputable brokers. One of the key things to consider is whether a broker offers a decent forex bonus. It’s also critical to look at the trading platforms offered by a brokerage firm. The most popular platform is Metatrader4.

Bonuses act as an incentive to pick a particular brokerage firm. Because of this, you’ll find that most brokers offer bonuses to remain competitive. Once you open a trading account, you get rewarded with a welcome bonus. You can use the funds to start trading right away. Some experienced traders generate a decent profit from the free funds before touching the deposited money.

This incentive sweetens the deal because you can test your trading skills with the welcome bonus. However, brokers apply various rules to prevent rampant abuse of the incentive. So, always check the rules associated with the bonus. Some brokerage firms only give you the bonus after you start trading with your deposited funds. 

Type of bonuses in forex trading

 Also, remember that the bonuses come in different types. For instance, your trading account gets credited with the incentive after trading. This type of bonus is a rebate. You can also find brokers who reward you immediately after depositing funds into your trading account. Brokers call this variant a deposit bonus. Meanwhile, regular bonuses are only credited after completing multiple trades.

Once you decide to trade forex, you’ll find a wide selection of promotions or packages linked to different account types. So, you should look at the various bonus categories to determine your preferred type.

Here are some of them.

No deposit bonus

 In forex trading, a no-deposit bonus is available to you whether or not you’ve funded your account. However, you shouldn’t expect to receive a large amount. Brokers prevent abuse of no-deposit bonuses by offering a low amount. This type of incentive typically ranges between $5 and $50. The amount may be staggered to motivate you to start trading using your money. 

One benefit of no-deposit bonuses is that they make it easier to preview live trading conditions. They also help you test and tweak your trading strategies. You can experiment without risking your funds. Nevertheless, experts don’t recommend overly relying on these bonuses when you’re still a novice trader. Instead, practice using a demo account involving virtual money. 

Experienced traders can maximise the benefits of a no-deposit bonus better than beginners. 

FX rebates

 With forex rebates, you receive a portion of the spread or a commission after closing a trading position. You may notice that the rebate process is faster with some brokerage firms. Other brokers only deposit the commission into your account after 30 days. To understand the impact of the rebate on your trading experience, it’s vital to examine a broker’s terms and conditions.

In some cases, a rebate may not be an attractive offer. For instance, the offer isn’t lucrative if you receive a $20 rebate and get three pips spread on a currency pair. Opting for a brokerage firm offering no rebates in exchange for one pip spreads is better.

The more practical side of rebates is that you receive an incentive for every lot you trade on the broker’s platform. Another good thing is that you don’t have to satisfy pre-determined conditions to qualify for a rebate. However, when researching the ideal broker, you’ll notice that rebates typically appear on third-party websites. Still, they’re very popular with traders.

Deposit bonus

 This widely available incentive allows you to get a welcome bonus after funding your account using a payment method of your choice. You can receive a bonus proportional to the amount you deposit into your forex trading account. These bonuses can range between 10 and 400 per cent to match the size of your deposit. 

Nevertheless, you should weigh the benefits of the available bonuses because, in FX trading, bigger isn’t always better. It’s possible to realise better benefits from a modest incentive over a larger one. So, it’s not prudent to pick a brokerage firm merely based on the size of bonuses offered. The best approach is to identify a reliable broker offering bonuses that come with reasonable terms and conditions.