Brokers have developed a lucrative method of attracting traders. It’s a bonus program. Of course, you should not choose a broker based on their promotions. Nevertheless, if your company offers you a bonus, then it is worth using it to get the most out of every trade.
What Are the Bonuses?
Each company tries to create a unique offer, but in fact, all programs can be divided into several main types:
- Deposit Bonus is an additional percentage of your investment added to your trading account.
- No Deposit Bonus is usually a small sum that is put right to your balance with no investment required. As a rule, in order to withdraw this bonus and profit made out of it, you should complete a specified trading volume and/or fund your account with a stated amount.
- Cashback - a return of a certain percentage of your deposits, losses, etc.
- Tradable Bonus is a common deposit bonus that also supports your funds during a drawdown.
This type of bonus is probably the most common on Forex. There is practically no broker that hasn’t offered this kind of promotion at least once. Deposit bonuses are almost always added to a credit of your trading account. Depending on the withdrawal conditions they can be divided into two types:
- Withdrawable - you should trade a stated amount of standard lots in order to transfer bonus funds to the balance and cash it out.
- Not Withdrawable - you can use bonus funds to trade but you can’t withdraw them.
Advantages of a Deposit Bonus
- Bonus funds enlarge your trading power. Thanks to this, you can increase the volume of your transactions and the size of your potential profit.
- The bonus allows you to use higher leverage and provides an additional margin.
- After fulfilling the withdrawal conditions, you will receive extra funds right to the balance of your account (if the bonus is withdrawable).
Disadvantages of a Deposit Bonus
- As a rule, a bonus has a lifetime. You need to fulfill the withdrawal terms before the bonus expires or you won’t be able to cash it out.
- When the equity on your account drops below the bonus size, the credit is usually deleted from your account.
Perhaps, this is one of the most enjoyable types of bonuses. Almost all cashback is automatic and issued right to your balance, so you don’t need to make extra efforts to get them.
This is the best type of deposit bonus, as it includes all of its advantages while losing the main drawback - the removal of bonus funds during drawdowns. The tradable bonus is specifically designed to support your funds during a losing streak. It provides an additional margin and helps your open positions survive the crisis and go positive when the market turns in your direction.
How to Utilize the Bonuses
Before requesting any type of bonus you should carefully read its conditions. Always look for the full version of the terms and make sure that they do not have any pitfalls.
Try to fulfill all withdrawal conditions to cash out your bonus, if it is actually possible. Some brokers set rather high withdrawal terms. Requirements of 10% of the bonus size can be considered acceptable. So how do you fulfill these conditions?
If you are a daily trader and make transactions every day, then you can divide the total required trading volume by the number of days left until the bonus expiration date. This way, you can follow the plan and get the long-awaited cash at the end of the term.
Remember, however, that if you don’t have suitable trading setups in the current session, and the trading volume has not been completed yet for the day, then it is better to postpone these trading requirements for tomorrow. Otherwise, you risk losing all your funds, including the bonus.
FXCL offers almost all of the bonuses described above and even more. You can receive the credits and cashback repeatedly and increase your chances of high profit on a daily basis. Make sure to check out the list of our promotions and stay tuned for news. You have a chance to become number one in our list of successful traders.