Why brokers are giving cash promotions?

Beginner Questions
1

Why are brokers giving out so many good promotions? For example etoro are giving $1000 when you go live.

I am very suspicious of this, do they want us to put loads of money in our accounts and then blow out making them alot of cash?

2

This is exactly the point, they give you the money to get you live. Most beginners I reckon about 90% will loose there promotion-money and most of there initial payment also. I speak from experience :).

I for example went live, okay only with 100 Euro and I got only 35 Euro promotion money. I had beginners luck and went up to 800 USD with in 2 Days, well than I started to listen to the chats and all the tips, and I lost everything + 500 USD of my own money.

That stopped me right in my track and I went back to my Demoaccount and learning about forex. I bought one book called Beat the forextrader" after reading this I almost thaught about stopping alltogether.

Of course I did´nt. I do have a small 100 USD account now and last week I made 97 USD I´m quite proud on this :slight_smile: but mainly I´m still using demoaccounts, Metatrader plattform and anything I can read about forex.

With other words. If you completely new to it, it is more likely that you loose than that you win. And some Platforms not only makeing money with spreads they althoug make money if you loose. So becarefull if you start. Do never as tempting as it is use a 400x leverage. Your money could be faster gone than you say what the f… happend

3

Yes.

They know that the majority will blow their accounts meaning they’ll get their bonus back along with the traders money.

Often they’ll have rules about how you must trade x lots for a round turn in x days to keep the bonus, adding further pressure to make the trader place many trades with big, probably to big, position sizes.

Sneaky and immoral but nothing dangerous to those who know what they’re doing. They simply ignore the bonus and if they actually manage to benefit from it so much the better, if not… nothing lost.

5

Any brokers this year that give out cash promotion?

Money Is Everything.

6

There are many reasons:

  1. $1000 = nothing for them :36:;
  2. Most of the times, in order to withdraw that bonus you have to open positions for at least $10.000;
  3. They know that you will lose that money in a hurry :46:
    Just my thoughts :slight_smile:
    I think it is a small opportunity for us and a good promotion service for them!
    Good luck and be careful :wink: