Have you dealed with brokers who give bonuses to your deposit? Which bonus is better:the one you can withdraw or not? Let’s talk about situations from our own experience.
Okey)If nobody has no experience I guess I’ll start with my own. I faced with situation that many brokers who offer bonuses to your account simply take them away when your own deposit goes to minus and in such way close your account completely. I think that it is very unfair.
Some people may think that it’s not reliable when broker offers you bonuses for trading. My friend took part in bonuses program provided by Accentforex. “Bonus+35%” is not available for withdrawing but it’s main advantage is that your account will not be closed if your real money has loss.
I’ve been thinking a lot where to open my live account. And yesterday I opened a live account with Accentforex. I deposited $1000. And then I decided at once to get 25% from my first replenishment. I didn’t believe that a broker really gives you such bonus which you can withdraw. I made a request and get cash on my trading account. I’ll post later about it’s withdrawing.
As for money withdrawing. It’s really great. Today I’ve made a request for money withdrawing (my profit and bonuses) and I received money withing withing 3 hours. Such service I like because you shouldn’t be afraid of not receiving your money back.
These days number of brokers are giving bonus but there are lots of condition as well to withdraw this bonus amount like only profit can be withdraw not actual bonus etc.
You are quite right. And what do you think is it better to have bonuses which you can withdraw or those which you use only for trading? Did you have any experience?
Well, Hi guys. I’ve too heard about this cash bonus 25% and deposit bonuses 35. But I hesitate what of them it is better to use.
Has anybody experience of getting 35% deposit bonus. What would you say?
Yeh right.
Let’s add something HELPFUL to this thread shall we:
Bonus Programs - A Broker’s Perspective
Read THAT CAREFULLY (new) traders.
Regards,
Dale.
You have to be very careful when you take something for free from any broker, you have to check the policy of bonus, of course it is nice to have a free money on your account but you have to understand that it is just marketing!
Yeah some bonuses only act as extra leverage but others can be withdrawn… But if you get the type of bonus that can be withdrawn you need to act as it isn’t there when trading…
OK thanks for information. I’ve read some on your link. It is rather useful. And could anybody tell me about your real results of dealing with bonuses cash or deposit. Are there any features of trading with different brokers? What I have to pay attention on from very beginning?
so let get this straight any bonus you get from deposit is there but it’s not really there.
Hello.
Here’s an easier way to understand it all:
“No deposit bonus” (or “promotion” or “prize” if you will):
You don’t have deposit any of your own money. The broker gives you capital to trade with normally for a fixed period of time after which the bonus amount is withdrawn from your trading account but you’re free to withdraw your profits at any time. Think of it as ME lending YOU, for example, €1 000 and saying to you “right: I’m lending you €1 000 for three months to trade with. Any profit that you make you may keep but after three months I want my €1 000 back. But if you lose the money then it’s my problem and my loss”.
“Percentage of deposit bonus”:
The broker will give you certain percentage e.g. 20% of your initial deposit as additional capital to trade with. But this amount is also only available for you to use for a certain period of time after which time the amount is withdrawn from your account by the broker but you’re free to withdraw your profits at any time. This is like ME saying to YOU “alright: you put up, say, €1 000 of YOUR OWN money and I’ll lend you an extra €200 to use as margin for a period of three months. Any profits you make you keep but after three months I want my €200 back and, well, if you lose the account then I’ve lost my €200 as well”.
Those are trading bonuses in their “purest” form.
But here’s what I was warning about it my post on FPA:
You HAVE to check the terms and conditions VERY carefully. Sometimes there are so many “strings attached” that it’s just not worth the trouble. Also: be very careful of the bonuses offered where a certain amount of the bonus is available for withdrawal after you have traded a certain volume. THESE bonuses CAN (and usually do) encourage the trader to over trade their account because they want to be able to “free up” the bonus for withdrawal. This normally results a) in tears and b) learning VERY bad habits.
Any even with the trading bonuses in their “purest” form you ALSO need to remember carefully on which day the bonus amount is going to be withdrawn from your account and allow for that. In other words: you have to always be saying to yourself “if my bonus is withdrawn from my account TODAY am I still going to have enough margin available to avoid a margin call”. Most often people don’t think of this and, well, the moment the bonus amount is withdrawn from their account they’re close to a margin call (and usually do get margin called). If the client has NOT deposited any of their own money to supplement the bonus amount then, well, I guess, no problem because it’s only the broker’s money that’s gone. But if the client HAS deposited some of their OWN money to supplement the bonus amount then they could very well lose not only the bonus amount but also all of their OWN money that they’ve deposited in the case of a margin call.
I hope that makes it clear now.
Regards,
Dale.
Thanks for the detailed information.
Hi
To know my experience about bonus , i think most of brokers provide this bonus for the clients with different percentage .
some of them are not withdrawal and some of them are withdrawable .
I chose FxGlory that provide 50% bonus on each deposit , you know with this bonus you can trade and make profit . there are some easy condition for withdrawal of this bonus . so i am happy with this conditions . I do not know about other brokers’ conditions . but as i trade here for 1 year i am satisfied .
as your second question i think a withdrawable bonus is better .