Getting a bonus from depositing on Forex sure sounds nice. But with so many offers thrown at us each minute, how do we choose the most profitable one? Today we discuss the Forex trading deposit bonus types and how they work.
How Does a Forex Deposit Bonus Work?
The idea behind a Forex trading deposit bonus is simple: deposit some money and get a partial or full match of the investment amount added to your account. For traders these extra money can serve as a safety net in case things don’t work out as well as they hoped.
Depending on the conditions on which you get a bonus, your account might change immediately after the deposit gets processed or over the course of a specified time period. Either way, it’s a lot like getting a two for one deal.
An increased amount on your account balance opens doors to a wider spread of promising opportunities. And as long as you are taking advantage of both the bonus deposit and leverage, your trading journey should be very fruitful.
It is pretty obvious how choosing the best deposit bonus can benefit traders, but what makes it a good idea for brokers also?
More often than not, by offering the best bonus Forex brokers express their loyalty towards traders. A good broker knows what traders need and goes to great lengths to provide it to them. Aside from deposit bonuses, brokers also offer other free perks like training courses, freshly updated market analysis reports and training tools, such as a demo account.
So, in a nutshell, Forex trading deposit bonus is a win-win for everyone involved. Traders get an opportunity to operate with larger amounts or use the bonus money as their safety net if needed.
And the brokers take this opportunity to express their gratitude to clients and give them a chance to be as successful and as profitable as possible.
Although this all is very straightforward in theory, there are actually some things you will need to consider while choosing from dozens of deposit bonus offers. In order to understand this better, let’s first break down the different types of Forex bonuses.
WHAT ARE THE DIFFERENT TYPES OF FOREX BONUSES?
What Are the Different Types of Forex Bonuses?
There are roughly four categories of bonuses you get on Forex. Keep in mind that these are the standard types, and they do not include one time promotions or special offers.
First, we have welcome bonuses and their subcategory, a no deposit Forex bonuses. Everyone wants to feel welcomed. Knowing this Forex brokers gladly offer their brand-new traders a nice incentive to get them started. This type of bonuses only applies to new clients and in most cases occurs only once.
Some brokers will give welcome bonuses based on the initial deposit amount and some will issue something that is called a no deposit Forex bonus. It’s all in the name: you get a monetary bonus, without having to put in any of your own money. This can be a great option for new traders, who don’t have enough experience and confidence to go in with their personal funds.
Taking advantage of the welcome bonus is great, but one thing to remember is that it will only happen once. And we want the bonuses to keep coming our way, which brings us to the next type, the deposit bonus.
Best deposit bonus solution is to get it each time you make a deposit. Sometimes referred to as a reload bonus, this type of incentive is percentage based. This means that based on your agreement with the broker you will be getting a specific amount of your deposit as a bonus.
For example, if your bonus percentage is 60% and you deposit $1000, you will eventually have $1600 to trade with. In some cases the percentage can be as high as 100%, but there is usually a minimum deposit amount requirement associated with such offers.
Additionally, the deposit bonuses can be immediate or spread over some time. This way you are still getting the discussed percentage but it may be broken down into smaller payments that arrive to your account every month, for example.
Experienced traders say that getting the parts of your bonus instead of everything at once is better. This opinion is largely based on the logic of pacing out your trading decisions and not risking everything on one trade.
Perhaps the least useful type of Forex bonuses is a pending bonus. It works almost exactly just like any other bonus, only you are not able to access it without first completing several trades from your account.
Brokers suggest that pending bonuses should be used when the initial plan falls through but the trader is not ready to exit the trading process altogether. They then get an option to continue trading with the bonus money or cash it out and call it a day.
The jewel in the crown of Forex bonuses are rewards and incentives given to VIP clients. When you find a good broker to open an account with, you are most likely to stay with them throughout your entire trading journey.
Sometimes this translates to years or even decades of working together. Brokers see and value their loyal traders and make sure to let them know that affection is mutual by gifting various tokens of appreciation.
It is worth mentioning, however, that in most cases only VIP account type holders will be subjected to receiving the exclusive bonuses, although in some cases brokers can make exceptions.
All the above will come with their own terms and conditions, that you will need to carefully study before agreeing to anything. Luckily, the best brokers usually come up with the best bonus Forex solutions. So the real question is how do we choose the broker that will give good bonuses?
FOREX BROKER WITH A BONUS ON YOUR DEPOSIT
Forex Broker With A Bonus On Your Deposit
Chances are, every broker you find will have a bonus offer of some sort. But we are not looking for anything average, we need the cream of the crop when it comes to choosing a Forex broker to trade with.
There are many approaches to finding the right currency broker. Since today we are talking about Forex trading deposit bonus types, let’s consider it our main criteria.
Every trustworthy broker will offer you a selection of bonuses. Which means that there is going to be an option to take advantage of every single bonus type described above.
On top of that the same broker will take every opportunity to make seasonal offers and adjust to the overall situation at the market to make trading as profitable and as comfortable as possible.
In some cases this is achieved through deposit bonuses, in others you will get your profits doubled or tripled. And sometimes you might even get special offers on trading with particular instruments or at specific times.
There are unlimited possibilities and most of them will be beneficial to your trading. But how do we know for sure whether we are choosing correctly?
One word: communication.
Brokers have tons of information to pass along to their traders. From educational articles and training materials to market analysis and policy updates.
And it is very important that all of these are communicated properly: in the easy-to-follow and professional manner. Why exactly do you care how brokers communicate their messages?
Because when it will come to reading through terms and conditions, or trying to understand how to set up your trading platform you will need to be sure that everything is crystal clear. Of course, the broker will still use a fair share of specific lingo and concepts. But that is kind of your job to get familiar with the slang at the beginning of your currency trading career.
As long as communication with the broker is top level, every time there is a new bonus to consider, it will only take you a couple of minutes to decide whether or not it’s worth it.
Next, you will need to look at the conditions of processing deposits and withdrawals with a particular broker.
Even the best deposit bonus will not seem too pleasant if you have to wait for a long time or, even worse — get charged for your deposit.
Take a good look at how the broker processes deposits and withdrawals through different money transfer channels. Keep in mind that certain transfer solutions are longer than others by design. For example depositing through a bank can take several days.
A good broker will give you a full idea of how transactions are processed and would usually not charge for most of the transfer ways. Once again this information has to be communicated as clearly as possible.
Last but not least, the best broker is the one who cares about the trader’s success. You can easily tell if the broker is interested in you being profitable by evaluating the quality and amount of educational and training tools offered to you.
Learning how to trade Forex is the most important step in becoming a professional currency trader. It is a somewhat lengthy process and it would usually last for years, as you will learn something new with each new instrument you come across and with all the market affecting news that comes out on a nearly daily basis.
The best tool for polishing off your trading skills is without a doubt a risk free account for Forex. Demo allows you to explore and try out every available function of your MT4, without needing to invest any actual money.
If you learn how to trade before you make your first investment, the chances of using that Forex deposit wisely and more profitably is way higher. Plus, taking some time to train can significantly boost your confidence level and make you a more patient and thoughtful trader.
Just before we wrap up, let’s take the next couple of minutes to summarize everything you need to consider while choosing a Forex trading deposit bonus.
HOW TO CHOOSE A GOOD FOREX TRADING DEPOSIT BONUS
How to Choose a Good Forex Trading Deposit Bonus
We’ve talked about the different types of Forex bonuses in general and deposit bonuses particular. Now we are going to go over every detail you need to keep in mind to make sure you make the most beneficial decision.
What is the bonus amount? Of course, this one worries us the most: how much extra are we actually getting? In order to check how good the offer is, apply the bonus percentage to the amount you are going to invest. If the bonus is making a visible difference — you are probably good to go. Just make sure to treat your extra money wisely.
How much time will it take? As we have already mentioned, getting your bonus stretched out over a rather prolonged time period is generally a better idea than getting it all at once. This is mostly backed up by simple risk management principles and the idea of taking it slow, especially at the beginning.
How many times will it happen? Getting a one time bonus feels nice, but getting multiple bonuses is a lot nicer. Best case scenario is when you get a noticeable bonus percentage every time you deposit into your account. Some brokers will even entirely match the deposited amount making it the ultimate two for one deal.
What are the conditions? This one is a biggie, but for some reason it often gets overlooked. You need to find the bonus that is as clear and as straightforward as possible. Just a couple of steps is enough to make a legit offer: make a deposit, get a bonus, that’s it. The more there is fine print and questionable requirements, the more you should doubt choosing the bonus.
Who is the broker? Working with a good broker is the foundation of your success at the Forex market. Make sure you spend a good amount of time getting to know your broker, the services they offer, the types of accounts you will be able to open. Remember that communication is key and you are looking for someone who is going to be honest with you and make your experience at the Forex market as comfortable as possible.
Based on these, you will be able to evaluate any deposit bonus offer that comes your way and make the right decision. Just make sure not to rush and really consider your options.
Best deposit bonus is the one that benefits you the most in terms of convenience and profitability. The good news is there are so many bonuses to take advantage of and you can choose whichever fits you.
Just always keep in mind that any amount you get to operate with on your account, even if it was gifted as a bonus, has to be treated with proper respect and attention. Start with the basics and learn your way up to professional Forex trading tactics and strategies. Do not disregard suggestions from your broker and implement several risk management techniques in every trade. And gather bonuses as you go, of course!