The Latest Guide About Welcome Bonus Forex For Traders
Find the best welcome bonus forex with thousands of active forex brokers in the online trading space, the industry has become somewhat saturated in recent years. This then forced the platform to become more and more competitive – with a display that stood out from the crowd. At the forefront of this is the welcome bonus forex offer.
In short, the forex broker will present a signup bonus for those who have not opened an account. This typically comes as a matched deposit bonus, meaning that your initial deposit will likely be elevated by a particular percentage. In other circumstances, you could be supplied a no deposit bonus.
If you are interested in finding out what welcome bonus forex is and how it works be sure to read the following guide.
What Is A Welcome Bonus Forex?
In its most basic form, welcome bonus forex is a promotion that brokers like IC Markets offer as a means to attract you to their platform. You also need to know the details about IC Markets Minimum Deposit to be able to start trading there. In most cases, the bonus will only be available to those of you who have not opened an account with the platform in question. Although the bonus may cost the broker money in the short term, it is expected that you will stay on the platform in the long term.
Thus, there is more and more welcome bonus forex in the online trading space. In terms of fundamentals, welcome bonus forex usually comes in one of two forms, namely a deposit bonus and a no deposit bonus. Relating to the former, this is exactly where your first deposit will probably be matched by a specific percentage, as much as a specific amount.
For example, a broker may offer new customers a 100% matching bonus of up to £500. After you proceed to make a deposit, the broker will credit your account with the respective bonus amount. For a no deposit bonus, it operates as the name suggests – you will get the bonus without the need to make a deposit.
Because we will discuss in more detail further, welcome bonus forex will always come with various terms and conditions that you need to know before registering. Most importantly, you will be required to trade a certain amount before you can withdraw the bonus funds for real-world cash.
Profit
- Allows you to trade with additional revenue than you deposit
- Usually available to all traders who have not opened an account
- You can typically make use of the bonus funds to trade any currency pair
- Several bonuses are offered on a ‘no deposit’ basis
- Claim bonuses with as many brokers as you want
How Do Welcome Bonus Forex Work?
So now that you know what welcome bonus forex is, let’s look at some real-world examples of how bonuses can work in practice.
Deposit Bonus
- Deposit bonuses are the most popular type of bonus offered by online forex brokers. As we mentioned earlier, the broker will match your deposit to a certain percentage and the bonus will have a maximum amount attached to it.
- You claim a 100% compliant deposit bonus with a forex broker
- The forex broker allows a maximum bonus of £1,000, which you decide to deposit
- After making your deposit, the broker then credits your account with an additional £1,000
- Your starting balance is £2,000 – even though you only fund your account with £1,000
No Deposit Bonus
As the name suggests, the no deposit bonus gives you a bonus without requiring you to make a deposit. These bonuses are highly sought after – not least because traders can get the bonus without risking any funds. As such, the no deposit bonuses are usually much smaller than the matched bonuses.
- You claim a £20 no deposit bonus with a new UK broker
- You open an account and then verify your identity – which is necessary to prevent bonus abuse
- Once your ID is confirmed, the site’s forex trading file will then credit your account with a £20 no deposit bonus
- You can then immediately start trading with the bonus funds
Wrapping Up
If you have read the guide above completely, you should now have a solid understanding of what the welcome bonus forex is and how it works. You are going to also realize that brokers normally present matching deposit bonuses or no deposit bonuses. Either way, you must make certain you comprehend the terms and conditions of the bonus. Most importantly, it centers around the amount you may need to trade ahead of a withdrawal can be produced. In most cases, converting welcome bonus forex into withdrawable cash will be very difficult.
For example, brokers usually ask you to trade $10,000 worth of currency only to release $1 in bonus funds. When you start multiplying these numbers by a triple-digit bonus, you very quickly find yourself in million-pound terrorism. In the end, it may not make sense to claim welcome bonus forex to make money. Alternatively, bonuses are most effective employed to practice and enhance your trading skills within a real-world environment.
