Yeah what you talking about is a common practice and seems pretty logical to me as it is a win-win approach with the IB rebates and/or reduced commissions based on high traded volumes. This however is from my perspective not a bonus for every retail client to get you hooked up but more like a negotiation for a partnership between a client and broker from which the client can profit if certain criteria are met.
i think minimum no deposit bonus offer you have to trade with , because only for experience about bonus issues.
It depends on kind of bonuses. you need caredulle study the terms of working them out to avoid the situation when you haven’t worked out a bonus yet, but have already lost your main deposit.
Depends on you, how you can manage your deposit bonus with your real invested money to gain your account.
what kind of bonus offer do you prefer when trading ? i always prefer no deposit bonus
Forex market is full of scams as well where people try to eat your money by offering you fake bonuses. Before accepting any kind of such offers, you need to consult it with the experienced traders and on this forum in order to stay away from any kind of loss. Always take wise decisions!
Forex Bonus is one form of incentive that Forex Brokers offer to traders to add to their initial deposit. Which I really can not believe.
can you make sure what live experience you have about bonus offer ?
They might be reputed by you. Not by any experienced or successful trader.
Genuine brokers don’t need and can’t afford to offer bonuses.
If a bonus is offered, then they’re not a genuine broker - they’re only pretending to be.
You might want to ask yourself why, in these discussions, all the experienced traders, and people who have ever worked in the industry, are saying exactly the same thing, and it’s only the newbie traders who share your perspective. Might it possibly be that you’re mistaken?!
Thanks for your reply, by the way what you thinking about genuine broker? Any specific definition about this word?
A “broker” is someone who executes on his customer’s behalf a trade in a market to which the customer doesn’t have access (with spot forex, that’s the “interbank market”) in exchange for a commission payment, without himself being involved in any way in the outcome of the trade.
(Just like a stockbroker, in the case of stocks.)
An example would be IB (“Interactive Brokers”): that’s exactly what they do, for spot forex.
You can normally tell whether someone is a “broker” or a “counterparty” by whether or not they’re charging commissions.
You need a decent account-size (think $10k+) to use a “broker” for currencies.
Most members of this forum are using counterparties, because they have to. Nearly all of us did, when we started. There’s nothing wrong with that. But it needs some understanding of how they work, to choose a safe, reliable and honest one.
The POINT (in this context) is that if a counterparty market-maker is offering “bonuses” for new account-holders, that’s throwing up a big red flag and telling you, loud and clear, that this is a broker you should AVOID, because of what their marketing tells you about the type of clients they’re trying to attract, and what that in turn tells you about their own business model. Brokers who are NOT incentivised for their own clients to lose are NOT trying to attract new accounts by offering bonuses.
Unfortunately, this information isn’t mentioned in the Babypips course, even though many experienced traders have been saying here for years that it should be! It should probably be on page 1, because it’s one of the big, important, essential things that people need to know: it’s part of the background information on which other information should be built.
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I’ve never found bonuses to be particularly useful. They’re a way to reel in more traders, and usually come with a lot of caveats. I’d rather trade with my own money, even if it’s a small sum.
Bonus is useful when you know all about its usage. Beginners can not get sufficient benefits from bonuses. They are like illusion only tackle people understand real terms ,it will more good to treat your own money with your own risk takings. Bonuses are just to attract nothing had good in it . I also never use bonus received over deposits.
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thanks for your nice reply with great detail, got something new information
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newcomers always looking for a high deposit bonus particularly those have lowest trading capital. they don’t know how to manage capital due to lack of experience, as a result they become loser and ultimately blame their brokerage,
Even if they don’t blame the brokerage the whole process is a waste of time for the newbie trader, in my opinion.
There is no doubt, Every brokers are giving bonus, but they are setting some terms and conditions with bonuses. If you can fill-up these terms you can rise this bonus.
It is not necessary to use bonus when one cannot understand their terms just focus on your routine trading using small lots , Every one can not afford the lots size broker say to use bonus trading. Then experience is also require to meet these conditions. A known person will use bonus to grow it other wise trader can loose it in only one trading,
For example, if you deposit $2000 into your trading account and get a 20% bonus, which equals $400. So, the total account balance has increased to $2400. This enables you to hold more trades and swap larger lot sizes if you maximize the value of your original deposit. Shortly, a strong forex bonus provides you with more opportunities for trading in the foreign exchange market and increases the odds of making more money.
Second, the leverage increases. The more money you have in your trading account, the larger the spot size you will choose. This raises your chances of making more money.
Third, examining how good a broker is. As mentioned earlier, you have to pay close attention to the terms and conditions of every bonus package. Some brokers would take back whatever bonuses you’ve received if you make a withdrawal. Others, on the other side, would only let you remove the bonus once you’ve traded a certain amount. You better look for a broker who provides proportional withdrawal of your bonus. So, let’s say that you withdrew 70% of the usable balance, the same percentage of your bonus will also be taken away. Yet, it is still a better deal than giving up your whole bonus.
If you are profitable, then the bonus is helpful yes. Not profitable? Then it has no meaning as you will still blow it one way or the other.