Forex Bonuses and Offers

forex bonus

Forex bonuses and offers have been around for a few years now. The first bonuses given out by forex brokers and other third party providers were seen in the market sometim

e in 2006. Since then, there has been a lot of change in the number of bonuses given as well as the type of bonuses given. These have brought benefits to the brokers and the traders as well. Let us understand a little bit more about these bonuses and offers that are accessible to traders in the forex market.

Best Forex Bonuses:

Rank
Broker
Special Offer
Min Deposit
Spreads From
Rating
Max Leverage
Regulations
Support
Start Trading
1
No commissions
$50
0.8 PIPs
30:1
CIMA, NFA, CFTC, FCA, IIROC, ASIC, FFA Japan, MAS, SFC of Hong Kong
Forex trading involves significant risk of loss and is not suitable for all investors.
1
Spreads From 0.8 PIPs
Max Leverage 30:1
Min Deposit $50
Register now
2
Lifetime demo account
$250
0.1 PIPs
30:1
CFTC
2
Spreads From 0.1 PIPs
Max Leverage 30:1
Min Deposit $250
Register now
3
EUR/USD from 0.5 pips
$200
0.5 PIPs
30:1
CySEC, FCA
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro. eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs. Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
3
Spreads From 0.5 PIPs
Max Leverage 30:1
Min Deposit $200
Register now
4
Same Day withdrawals
$10
1.2 PIPs
500:1
4
Spreads From 1.2 PIPs
Max Leverage 500:1
Min Deposit $10
Register now

What are Forex Bonuses?

There are two main types of forex bonuses in the market:

a)    Deposit Bonus

b)    Seasonal bonus

c)     No-deposit bonus

The deposit bonuses were the first bonuses that were used in the forex market. These bonuses are given principally as a means of encouraging prospective traders who have indicated interest to actually take the step to open and fund their trading accounts for the first time. These bonuses range from 25% to as much as 100% of the deposited amount. Some brokers also have a structured bonus plan where a certain percentage is awarded as bonus amount for a certain amount of money deposited.

Seasonal bonuses are not usually given to first time traders but to existent traders whose accounts have either been rendered dormant by trading inactivity or whose accounts have suffered a margin call in the past. These seasonal bonuses still require the trader to make a deposit into the trading account. Some of the seasonal bonuses are not just in form of cash but could be in form of gift items that are relevant to the trading activity. These gift items range from iPads to laptops and computers, flash drives and other associated paraphernalia. The seasonal bonuses are used as incentives to attract back investment into the forex market by this group of traders.

No-deposit bonuses are a new kind of bonuses that are awarded to traders without the obligation of depositing money into the trading account.

Under this arrangement, the trader opens a live account using an affiliate link of a partner that works in affiliation with the forex broker. The trader is then awarded a welcome bonus into the live account, while the affiliate partner is credited with any commissions that accrue from the trader’s activity.

Therefore, traders who are beneficiaries of the no-deposit bonus are expected to generate a certain amount of trades in their trading accounts, and a percentage of these will now be used in paying the affiliate partners. This is a good way for traders without any live trading experience to get a feel of real money trading without jeopardising their trading accounts.

Forex Offers

Forex offers will encompass other stuff that brokers give out to traders that do not exclusively fall into the category of bonus awards. Some of these are as follows:

a)    Contests

b)    Raffle Draws

c)     Gift cards

Contests are just what they are: contests between traders. There are several contests that are now run by forex brokers and other third party providers that work in tandem with forex brokers. Some of these contests are trading contests where traders register for a contest that aims to determine who can make the most money in a time frame. Other contests also test to see which trader has the best strategy (strategy contests), those who have the best expert advisors, and those who have the best performances in terms of trading consistency with the lowest drawdowns over a period of time. These contests usually reward traders with cash prizes which are usually added to their trading accounts for withdrawal or for further trading.

Other offers can come in the form of raffle draws where gifts are awarded to the best traders, those who can achieve a pre-set target within a particular time frame, and also traders who can maintain a particular account size within a time frame. Some of the gifts given out include cars, computers, T-shirts, etc.

Gift cards are now becoming a popular give-away among forex brokers. These gift cards are usually given to high-end traders who can afford to deposit tens of thousands of dollars into a forex account. This is used as an incentive for such traders to keep their account balances ramped up continually.

Bonus Trends for 2017

Unfortunately, many brokers that commenced business after the first bonuses were issued in 2006 have abused the process, tying withdrawals to traders being able to generate trade amounts which far exceed the bonus amounts given. It is no longer strange to hear of brokers asking traders to generate up to 4 times the bonus amount in spreads. This practice which started off in 2012 has now caught the attention of many regulators and the hammer has come down. The Financial Futures Association of Japan (FFAJ) has banned the issuing of bonuses in its entirety, and the Australian Securities and Investment Commission has also started to take a serious look in this direction via its “client money handling” rules which prohibit brokers from depositing their own funds in client accounts (which is essentially what a bonus is).

What this means is that traders have to change the way they seek for extra perks in their accounts with regards to bonuses, promotions and special offers. It would appear that the route to take would be to participate in contests which give out physical items as bonuses as opposed to accepting cash bonuses. This is not to say cash bonuses are not good. There are several brokers out there who still attach credible conditions to bonuses. For instance, it is only fair that traders generate equivalent amounts of spreads for bonuses, and those are the cash bonuses such traders should seek. It should be a case of $1 trade volume for every dollar issued as a bonus. Traders should avoid brokers who demand 30X the bonus amount as trade volume before a withdrawal can be accepted.

So there you have it. There are several bonuses and offers that are available for the benefit of traders. It is up to traders to decide which one to benefit from, and then line themselves up for them accordingly.

 

Adam

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Adam is an experienced financial trader who writes about Forex trading, binary options, technical analysis and more.

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