It’s a promotion program that encourage traders to trade on live accounts. Some traders are stuck in demo or just don’t have enough funds to go live even with micro accounts. When opening an account with a particular broker that offer this promotion (you will find them all below), you will then receive a certain amount proportional to your deposit. There is also the no deposit bonus, where you get upfront a tradable amount in your account, just by registering with a new broker.
Do I really receive some money?!?
The broker usually offer two types of bonus : in percentage, and in cash.
Also, many brokers will transfer you the bonus by small deposits, depending on total lot volume you are trading. The other very important point to consider, is if the bonus is withdrawable. Some brokers will transfer you a cash bonus directly in your account, but the real balance won’t change since this bonus can only used by trading on the platform, it is virtual money.
Note that many brokers work with a dual system : they will transfer you the bonus money straight away, but then it will become gradually withdrawable after you make some trades.
Two types of bonus : in percentage and in cash
When you deposit to a forex account, you can get a percentage of this deposit in bonus, or you can receive a cash bonus depending on the size of your deposit. The important point to check here, is if the forex bonus is recurring. What I mean by this is if the promotion applies on your first deposit only, or if it will also be working on future deposits.
The forex no deposit bonus
Those new kind of bonuses are funded by the brokers themselves because of the large competion in the forex world. This translate into better deals for traders like you, if you know what you are doing. When you open an account with a specific broker that offers this program, the bonus will appear after confirmation of the account, in the trading platform (such as MT4 / metatrader). This is very interesting because it will let you try the live platform of the broker for free and as I mentionned before, you can test yourself on the live market. But the best part with a no deposit bonus, is that if you grow the account, the profits are all yours, and if you loose, well you don’t loose anything since it’s the broker funds!
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