Many people are mislead what is Forex bonus. Find out the definition of Forex bonus and learn how to pick up the best FX bonus offer for yourself. Not every forex bonus is the same. Forex bonuses vary in type, size and bonus clearing requirements. Each type of bonus has its pro's and con's, depending on your trading capital, trading experience and trading strategy. There are generally five types of forex bonuses offered by the various forex brokers :
- Forex Instant Bonus Forex Instant bonus is a bonus that is deposited in the trader’s account immediately, which gives the trader an opportunity to use it right away for trading purposes. An instant bonus can be expressed as a percentage. For example, an instant bonus of 40% up to $1,000 indicates that the broker is willing to give you a bonus that represents 30% of your deposit. Unlike with pending bonuses, where the broker expects you to lose your deposit before you can claim the bonus, the idea here is for you to lose both the instant bonus and the deposit – at least, that’s the broker’s idea. However, you have a different take on things! We consider this type of bonus to be the optimal one. Forex brokers want you to try out their platform and the instant bonus offer is a very strong way to achieve that. For instance, if you deposit $400, the broker will deposit $600 in your account. You still have to trade to be able to cash out the bonus, but you can immediately use it to trade with.
- Forex No Deposit Bonus No deposit bonus at forex is a real money bonus that you get without making a deposit yourself first. While advertised as a bonus that you can receive without having to put up any money of your own, this is typically a way to solicit your e-mail address and then send you an invitation to make a deposit. Forex brokers rarely offer it because you can't become a very active trader if you're not willing to put up some money of your own. But occasionally forex brokers approach us with a no deposit bonus because they want a lot of traders to try out their trading platform. The no deposit bonus can not be cashed out right away. As with an instant bonus, you have to trade a certain number of positions before you can cash out. However, it does offer you a 100% free forex experience, because you can trade with real money without risking any money of your own.
- Forex Pending Bonus Pending bonus is a forex deposit bonus that can’t be immediately used for trading. As many traders drawn in by the bonus plan lose their deposits before they are able to meet the minimum volume requirements necessary to receive the bonus, this makes pending bonuses an attractive option for forex brokers and perhaps a bit less attractive for you. You need to have a good idea of how much volume you’ll be able to generate if you’re interested in taking advantage of a pending bonus program.
- Forex Reload Bonus Reload bonus is usually offered to an existing client. The broker offers the trader another bonus (typically, an instant one) if an additional deposit is put up. Because most forex brokers offer very good sign-up bonuses that are instantly available for you to trade with, they don't offer a lot of reload bonuses. A forex reload bonus means that the broker invites you to deposit again in exchange for another bonus, usually an instant bonus. A good example of a forex broker that offers reload bonuses is forex broker FXTM. They offer a 25% reload bonus on each deposit, until you've had a total of $10,000 in bonus money. So if you try out FXTM and like trading there, FXTM will make staying worth your while.
- Redeposit Forex Bonus This bonus is available after second time deposit. But it is like a instant bonus once it is deposit on account trader can start trading.
If you are a new Forex trader, we recommend you to start trading with a free Forex trading account. With such a demo account, you can trade with play money foreign currencies under real market conditions. This is a very important step in becoming a successful FX trader. In a first step, you gain experience without any risk. Only after you have proved to yourself over a large number of trades that you can trade foreign currencies with a profit, should you deposit real money. And as we said in the beginning of our article: if you open up a real money account at a Forex broker, chose a broker which offers a generous first deposit bonus to new clients. This bonus will further boost your winnings.