About FX Bonuses

By mosesbet · Filed Under Forex Brokers Comments Off on About FX Bonuses 

FX Bonus

FX trading is big business, and tons of FX platforms and brokers are trying to incentivise you to sign up and trade with their platform.  One of the most common promotions and offers is an FX bonus, which is essentially free money given to you just for signing up and making a deposit or even a few trades.

FX bonuses range from welcome bonuses, rewards bonuses and deposit-bonuses, to even no-deposit bonuses which give you free money to trade with just for signing up.  The rewards bonuses are offered by the best FX platforms in order to keep their clients happy and trading in the long term.  They realise that it is better to discount profits and give bonuses back to their users in the long-run and develop key relationship rather than to offer single upfront deposit-bonus that only attract the one-off traders.  Rewards bonuses or loyalty bonuses tend to be deposited into your account after so many trades or at the end of a calendar month.  In many way, a good rewards program at from an FX company can make your much more money than an upfront £100 deposit-bonus or 10% up to $10,000 rolling bonus.

No-deposit forex bonuses are just what they sound, they give users free money for signing up an account without having to make a deposit.  This sounds great to first-time users, but usually these bonuses won’t amount to much, possibly $10 or $30.  When you compare this to the $1,000 deposit-bonuses that are offered by high quality FX brokers such as eToro than you realise this really is small money.  Also remember that most fx traders who make money speculating on the currency markets will be depositing around $300+ on average, so a small bonus like this doesn’t have much of an effect on the serious traders.

Don’t Join Just Because of the FX Bonus

Importantly, whilst FX bonuses are a great incentive for joining a broker, make sure you don’t fall into the group of traders who are naive enough to think a bonus will help you make millions. In the long term it is more important that you look out for a trust, reliable broker who is regulated by the relevant financial services authority and has good stop-loss features, rather than whichever FX platform offer you the largest deposit bonus.  A large variety of markets, combined with low spreads and commission (such as eToro) will also save you much more money for high volume traders.  A lower spread means that you an make trade on higher profit margins and pay your broker less per unit trade.

It’s also a good idea if you are first time trader to join a forex platform which offers a demo account and great customer support.  Demo forex accounts are worthwhile looking into before you open a deposit account because they allow users to become acquainted with the software, practice trading on different currencies, analysing their positions and using technical charts as part of research.

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