Who wouldn’t want an extra payment?
You must know how great it is to get extra rewards on top of your regular pay or income.
The sweeter the deal if you don’t have to do much to earn that added forex bonus.
In Forex, it’s the same.
Most Forex brokers have bonus programs to attract more traders and help them build a relationship based on mutual benefits.
But different bonus programs have other structures that affect what you get as a reward and what you can do with it.
This is why you should take the time to learn about each broker’s bonus program before you sign up with one.
Here, find the best forex broker South Africa.
How does a Forex deposit bonus work, and what is it?
A trader is given a deposit bonus for signing up with a particular broker.
Depending on the broker, the bonus can be anywhere from 10% to 100% of the amount deposited, plus a few extra incentives.
When traders sign up for these programs and make a minimum deposit, they may also get a one-time welcome bonus of up to $20.
Before you can get a bonus, you have to put money into your account.
Now, there may be some restrictions on deposit bonuses.
Before you can get your reward from a deposit bonus, you have to make a minimum deposit.
Some brokers have a minimum deposit of $100, while others will ask you to meet certain conditions before getting your deposit bonus.
If it says “plus a trading bonus,” you’ll have to make a certain number of trades before you get your deposit bonus.
Sometimes, you only need to make one trade before your account is credited with rebates.
Also, your bonus might only be given on your first deposit, not your second or third assurance.
Why are deposit bonus programs a good idea?
1. More money or equity to trade with
Note that a better deposit bonus program gives you more ways to play with the foreign exchange market and increases your chances of making more money.
You put $1,000 into your account, and the deposit bonus is 30%.
That adds up to an extra $300.
This means that you now have a total of USD 1,300.
Then you can trade that amount without taking on more risk.
After all, the extra USD300 is your bonus. If you make a trade that goes well, you make more money from the money you put in.
When you start trading, you can hold more positions and sell more oversized lots if you put down more money.
2. Gained more power
The more money you have in your account, the more significant trades you can make.
This makes it more likely that you’ll make more money.
Because you get a bonus on some of the equity you trade, you can use it more than if you were only using your own money.
This removes some of the risks that come with using more leverage.
3. Less money to spend at first
With a bonus that can also be used as extra trading capital, you can change the size of your trades to increase your chances of making more money.
4. Let traders test a trading platform’s performance in detail.
If all you want is to check out how well a trading platform works, the minimum deposit plus the deposit bonus will give you enough money to do so.
Use your money to see how quickly a platform can make a trade to avoid slippage.
Or, find out if a broker will let you change the price.
You can also use the same funds to practice trading or see how a strategy you want to use will work.
5. Check to see how a broker treats its traders.
As was already said, you need to pay close attention to the terms and conditions of a bonus program.
Because some of them will take away any bonuses you earn if you cash out.
Others, however, won’t let you cash out the bonus until you’ve done a certain amount of trading.
You’ll be better off with a broker that takes away a portion of your bonus every time you draw money out of your account.
For example, if you take 60% of your available balance, 60% of your bonus is also taken away.
This deal is a lot better than losing your exclusive bonus.