It’s possible for private investors to open accounts with forex brokers and start trading currencies. Opening an account comes with a lot of advantages but also some responsibilities. The first important responsibility is choosing the best forex bonus that will suit individual needs and requirements. It’s very often that newbie traders are lured into opening their accounts with brokers offering attractive bonuses, e.g., 100 percent deposit match bonus, however it can be very difficult if not impossible to withdraw this money later due to high withdrawal conditions imposed by the broker.
The following article will provide you with valuable information about best forex bonus so your first step into the forex market will be as profitable as possible.
Best Forex Bonus is a welcome bonus, or an introductory bonus offered to new traders opening their accounts with forex brokers for the first time. Basically, it can be any sum of money given to new customers by forex broker after opening account and depositing certain amount of money, usually between $100 and $1,000. This way forex brokers attract new clients that are willing to trade currencies in hope they will generate enough profit to meet the initial deposit requirements later on when trying to withdraw this money.
Forex welcome bonus can vary depending on what type of trading platform individual trader prefers – web-based platform, downloadable platform or trading through mobile apps. Most popular forex bonuses are deposit bonuses, where the broker matches the deposited amount with a specific percentage.
Forex brokers understand competition is high and that’s why they try to offer different types of bonuses in order to attract new customers. However, traders should always be careful when choosing a broker and read terms and conditions associated with any bonus offer very carefully. Brokers often have high withdrawal conditions which traders must meet before they can withdraw their bonus money. Sometimes these conditions are impossible to meet, so traders are forced to forfeit their bonus money.
Therefore, it’s very important to choose a forex broker that offers a welcome bonus which is easy to redeem and doesn’t have too many restrictive withdrawal conditions. Some of the popular bonus types available from forex brokers are as follow:
- Welcome bonus – a cash sum offered by the broker to new traders after they have opened an account and deposited money with the company. Bonus is usually given as a percentage of deposit amount, e.g., 100% or 50%.
- Minimum initial deposit – this type of bonus requires no minimum deposit from the trader but only a valid trading account that has been open for at least 30 days. For example, if you want to claim Forex broker X’s 100 percent welcome bonus offer and your initial deposit is $300 then you will need to make sure that the company matches it. This way if you leave your funds there for at least 30 days (trading not required) Forex broker X will add a 100 percent bonus to your account for a total of $600.
- Minimum accumulated volume – some brokers offer welcome bonuses in form of free trades. For example, if you want to claim Forex broker Y’s 50 percent welcome bonus offer and you make five trades within the first month then the company will add 25 more free trades to your account for a total of 75. In order to avoid any misunderstandings, it’s good practice to ask from your potential broker what type of welcome bonus does he offers before considering opening an account with him. If the company asks you to open an account before providing information about forex bonus terms and conditions, then most probably there are unfavorable conditions hidden under the.
Take note that most brokers will provide you with free trades after claiming their welcome bonus offer, but not all of them will do this for the same time period. For example, a broker may give a trader a chance to claim 20 free trades by providing a 100% deposit match on an initial deposit of $300 and require you to have your account open for 30 days. A different broker might offer 10 free trades after claiming 50 percent deposit match, but only if your account is open for 90 days before withdrawals can be made.
In addition, most brokers that provide forex welcome bonuses will usually apply some withdrawal conditions which have to be met in order to withdraw the deposited funds as well as any matching bonus amount from your account once trading has been completed.