There are numerous forex brokers and most of them give bonus to each trading account open with them. These brokers want to help traders or giving bonus has been necessary for them to stay in forex market due to much competition in forex market. So my query is:
Is Forex bonus useful for traders or brokers?
The vast majority of Trading Account Bonuses, from what I have seen myself is that the bonus is simply a ‘Margin Credit’. Also the bonus does not remain in the account for the entirety of the time of which the account is opened for. So it may be a $100 bonus which gets taken out of your account after two months.
Also, most of the time, in the small print, it will state that the bonus can only be added to your account P & L in incremental amounts based on the number of round lots that you trade. This ‘lot requirement’ is usually excessively high, and would require you to either trade recklessly with the $100 bonus account, or if you wanted to trade in a sensible fashion you would have to deposit additional funds to bring the risk element per trade back down to a more realistic level.
short answer "NO"
all the bonus programs I have seen just add to your available margin. If they can be withdrawn at all the requirements are so steep that if your trading requires you to use extra margin the market will take your money long before the broker has to pay out the bonus. I don’t like them for another small reason they mess with some of my EAs risk calculations. I can usually just make an adjustment to code to deal with the fact the equity and balance on the account do not match when no trades are open but Its a pain in the ass.
yes shr1k is right.It’s a pain in the ass.
Usually the broker requires ‘X’ amount of trade value in a given period and worst still, 3X plus turn around of deposited funds before the ‘bonus’ kicks in. Best stay clear if your serious about trading. There’s really no free lunch here statistically.
Means Forex bonus is useful for brokers not traders.
For me, bonus is just an extra which is good to receive. but it is not an essential criteria that I will require if today I will go for a new broker. Rather I will try to analyze essential aspects of my broker: spread, leverage, re-quote and slippage issue to consider, deposit, withdrawal services, transaction modes, EA trading, etc.
Forex brokers maximum time offer many kinds of bonus offer for their advertisement. How much this kind of bonus effective, it completely depends on broker’s performance.
I find only few brokers are fair with traders who offer bonus with less strict terms otherwise bonus is of no use. Traders waste this very soon. When trader is skilled he can use bonuses in beneficial ways new traders not get proper benefit out of these bonuses.
I will leave that link here: EU brokers Binary Options and Deposit Bonus ban, 30x FX leverage cap
I can hardly imagine a fair broker which offers no deposit bonus…
Very good reply imbest . thanks , but I think it’s not a big deal to be a skilled trader to use brokers bonus offer , how much comfortable the bonus is , it’s completely depends on brokers performance. So, broker is a real deal when choosing a profitable bonus offer.
bonus we can use generally , but the main problem is when it is time to withdrawal , there are so many restrictions and hidden fees. its so disgusting and not comfortable for happy trading.
Honestly, I do not trust brokers who offer bonuses. The experienced and capable trader will not need any bonus, this program is aimed only at newbies who wish to win fast and easy money but we all know that things don’t happen this way. In most cases the bonus is lost pretty fast and sometimes you’re obliged to deposit even more funds. In my opinion the bonus is useful for the broker not for the trader. I highly recommend to stay away.
Agree, experience traders don’t need any kinds of bonus offer , but the traders who are particularly newcomers always depend on deposit to increase their trading equity, even though so many negative reviews everywhere about bonus offer but its true some good brokers are available from all scams and they provide most transparent bonus offer.
It’s really, really simple: “brokers” who offer bonuses should be AVOIDED because of what the fact that they’re offering bonuses tells you about the type of customer their business model depends on trying to attract.
There are many conversations and warnings about this, from experienced traders, and from people formerly/currently involved in the brokerage industry, throughout the forum.
Agree Sir, but not completely, because I have seen so many reputed brokers offer bonus offer sometimes, how can we avoid top brokers which offer bonus issue ?
honestly speaking , i have never at any transparent no deposit bonus , but found sometimes good initial bonus offer.
Have you withdrawal at all from initial bonus offer without any limitations?
yes , i did so many times from various brokers but not faced too much restrictions when time to withdraw.
Care to name these honest brokers who are giving away free money?