Can traders make money from the foreign exchange market without having to spend a lot of capital? Did you know you can receive attractive offers from reputable forex exchanges when trading forex? Read the following article shared by Learn Forex Trading to learn about the forex bonus – one of the effective ways to make money from the foreign exchange market.
Overview of Forex bonus
Before taking advantage of the benefits of forex bonuses, traders need to understand the following basic information.
What is a forex bonus?
Forex bonus is a type of promotion that forex brokers offer to customers. It comes into effect when a trader opens an account, deposits funds or performs certain transactions. A forex bonus can be understood as a bonus that you can use for forex trading. Or withdraw to your account after meeting certain conditions.
How does Forex bonus work
The way forex bonus work is quite simple. You just need to register an account with a reputable forex broker. Then, follow the instructions to receive the bonus. After that, you can use the bonus to trade forex on the platform. Or withdraw to your account if you meet the requirements for a number of transactions, trading volume, or transaction time.
Depending on the type of bonus, the conditions for receiving and using the bonus will be different. You need to read the bonus terms and conditions carefully before signing up. That is to limit unwanted problems.
Popular types of forex bonuses
There are different types of forex bonuses. They can be classified into the following 4 main types.
Trade forex with no deposit bonus
A no-deposit bonus is a type of bonus that you do not need to deposit money into your account to receive. You just need to open a new account with the forex broker and verify the account KYC. Traders will receive a bonus to their account.
No deposit bonuses are usually quite small in value. from 5 to 50 USD, depending on the forex exchange. You can use this bonus to trade forex on the platform and keep the profits if you earn them. However, you cannot withdraw this bonus. Traders can only withdraw profits after you reach a certain number of trades.
No deposit bonuses are a good way to familiarize yourself with the markets. At the same time, it helps check the quality of the forex exchange without having to risk your capital.
Forex bonus cashback
A cashback bonus is a type of bonus where you will receive a portion of your money back for every transaction you make. The cashback bonus is usually calculated at a certain rate, for example, 1 USD per lot traded. Or by a fixed, hypothetical amount: 10 USD for every 100 lots traded.
The cashback bonus can be received immediately after you complete a transaction. Or accumulated over a certain period of time, for example, a week, a month, or a quarter. You can use the cashback bonus to continue trading or withdraw it to your account without having to fulfill any conditions.
Forex welcome deposit bonus
The welcome deposit bonus is a type of bonus that you will receive when you deposit money into your account for the first time. The deposit welcome bonus is usually calculated as a percentage of the deposit amount. For example 50%, 100%, or 200%. Welcome deposit bonuses usually have a maximum limit, for example, 500 USD, 1000 USD, or 5000 USD.
Welcome deposit bonus can be used to increase your leverage and trading capabilities. However, traders cannot withdraw this bonus. You can only withdraw profits after you reach a certain number of trades.
The welcome deposit bonus is a good way for traders to leverage their capital. At the same time, start forex trading with a great advantage.
Trade forex to receive trading bonuses
A trading bonus is a type of bonus that you will receive when you make a certain number of transactions in a period. Trading bonuses are usually calculated as a percentage of the total trading volume. For example 10%, 20%, or 30%. Trading bonuses usually have a maximum limit. Usually ranges from 1000 USD – 3000 USD.
Trading bonuses can be received immediately after you complete a certain number of transactions. Or accumulate bonuses over a required time. For example, a week, a month, or a quarter. You can use the trading bonus to continue trading.
Trade forex bonus can bring you many benefits. However, you need to keep in mind the following points when trading forex bonus :
Forex broker review with bonus conditions
Not all forex brokers offer forex bonuses. At the same time, not all bonuses have reasonable conditions for receiving and using them. You need to carefully evaluate forex brokers with bonus conditions. Thereby, avoid scam forex brokers and choose reputable ECN forex. These include requiring too high a number of transactions, too short a transaction time, or too low a withdrawal limit.
Traders also need to carefully read the terms and conditions of the bonus. Thereby, clearly understand your rights and obligations when receiving and using bonuses. You need to pay attention to points such as bonus value, bonus rate, bonus limit, time to receive the bonus, time to use the bonus, how to calculate the bonus, how to withdraw the bonus, how to withdraw profits, and other conditions.
See more: How to register ICMarkets broker account
Trade bonuses with reputable forex brokers
In addition to evaluating the conditions for receiving the bonus, you also need to evaluate the quality of the forex brokers where you want to trade the bonus. You need to choose reputable forex brokers with legal operating licenses, stable trading platforms, and good customer support. At the same time, it has a safe and reputable account security and insurance policy in the forex community.
You also need to avoid forex brokers that are not reputable, have signs of fraud, or have trading platforms with frequent errors. In addition, minus points include poor customer support, weak account security and insurance policies, and much negative feedback from the forex community.
You can refer to reviews, comments, and ratings of reputable forex brokers on websites, and forums, and update news about forex news. Thereby getting useful and objective information about the Forex exchanges that you are interested in.
Finally, you need to choose a bonus that suits your goals, strategy, and trading ability. You need to determine what purpose you want to trade forex, for example making money, learning, and testing.
Once the above points have been identified. Traders can choose bonuses that suit their needs and conditions:
- If you want to trade for the purpose of making money, you can choose the welcome deposit bonus, to leverage your capital, and increase your trading capacity.
- If you want to trade for learning purposes, you can choose the no-deposit bonus. To get familiar with the forex market, and check the quality of the forex broker without having to risk your capital.
- If you want to trade for testing purposes, you can choose a forex cashback bonus, to minimize risks when the market fluctuates.
FAQs:
What is a forex bonus?
Forex bonus is a type of promotion that forex brokers offer to customers. When a trader opens an account, deposits money, or makes certain transactions.
Popular types of forex bonuses?
There are many types of bonuses depending on the exchanges. There are currently 4 most popular types of bonuses including no deposit bonus, cashback bonus, deposit welcome bonus, and trading bonus.
How to choose effective forex bonuses?
You need to choose a Forex bonus that suits your goals, strategy, and trading ability. You need to clearly determine what purpose you want to trade forex, for example making money, learning, and testing.
