When you get into forex trading, one of the terms you will get to hear very soon is ‘deposit bonus’. While you might not be familiar with this term, you would have heard the word ‘bonus’ for sure. Bonus refers to a reward or a sum of money through which one appreciates the hard work or effort put in by an employee in foreign currency exchange.
In forex trading, thing work in a similar manner. Once an individual opens an account with the help of a forex broker, they would be able to trade in currency pairs. They will also have to incur the kind of expenses a trader does. By giving a bonus, a broker rewards the trader for their choice.
A forex deposit bonus has often been described as a gift that the online portal or the trading platform offers to its clients. When a broker gives this reward to a trader, they do not expect them to pay for it. However, in many cases, these bonuses are not offered at zero cost. Sometimes, to get a forex bonus, you might need to make a deposit.
Forex bonuses can be seasonal or exclusive in nature. The different forex bonus types are called promotions by many traders. Apart from the time they are provided, forex bonuses are also put into different categories based on other factors. For instance, if you happen to be an old, loyal customer of an agency, you will receive a VIP bonus.
What Is A Deposit Bonus In Forex Trading?
In forex trading, the deposit bonus can be described as the bonus that refers to the deposit made by you. The deposit is largely the investment you make on the broker’s website. You can make this investment through a bank wire transfer or credit card. The forex deposit bonus you get is dependent on the deposit made by you.
Forex deposit bonus is often measured in terms of percentage. Here is a simple way to understand its structure. If a forex deposit bonus is locked at 10% and you deposit $200, then you are entitled to receive $20 as the bonus amount. The total amount in your account, therefore, would be $220.
Types of Deposit Bonuses
Different types of deposit bonuses are designed for a professional traders. Through different packages, brokers will put across their promotions. As a trader, you should make an attempt to study the pros and cons of different bonuses.
No Deposit Bonuses
This particular type of deposit bonus is offered to traders without expecting them to pay a deposit. The size of a deposit bonus is not very large. Most traders earn anything between 5 USD and 50 USD as their deposit bonus. These types of offers are regularly distributed by brokers so that traders feel encouraged to carry out operations and learn more about trading currencies.
Since trading is carried out on live servers, one can use no deposit bonuses to have a look at live conditions. There is one important thing about no deposit bonuses that you should remember. These are not very common and therefore, when a broker offers them to you must figure out whether you can trust them or not.
No-deposit bonuses are known to be extremely useful for experienced traders. They also serve well for those who keep working on devising trading strategies all the time. It enables traders to take a shot atdifferent trading styles and new strategies without suffering from the risk of losing a lot of money.
If you want to engage in trading activities without undergoing any stress, getting a no deposit bonus opened would be the best option for you. However, there are a few things that you need to be cautious about.
A lot of traders make the mistake of carrying out their trading activities through a no deposit bonus account without spending some time to understand the intricacies of the market with the help of a demo trading account. If you don’t do market research, you will not learn about important elements like risk management.
Forex Rebates
When you operate as a trader, you will come across a term called FX Rebate. This is referred to as the commission or a portion of it that is put back into the account of the trader after they close a position. If you are lucky, you will see the rebate process unfolding at a very good speed. There are, however, many brokers who offer rebates on a monthly basis.
As a bonus type, a forex rebate works for some people and doesn’t prove to be beneficial to many. To find out whether the forex rebate offered to you would prove to be a lucrative forex bonus or not, you will have to have a closer look at the broker’s trading conditions. By doing some basic calculations, you should be able to figure this out.
Since you are receiving compensation for every bunch of commodities you trade in, many find forex rebates to be very lucrative. To be eligible for this particular bonus, you do not have to fulfill any criteria or conditions either. When you use third-party websites, you truly realize how popular or relevant forex rebates are.
Some people criticize forex rebates by stating that bonuses do not prove to be very lucrative for traders. These people are of the opinion that a forex rebate does not work as anything more than a ‘proportional compensation’ for one’s expenses pertaining to trading. Know more multibank group cryptocurrencies
When you are particular about getting a good deposit bonus, you must look for the right broker first. You should open an account and get a certain amount deposited in it only after you have found a broker you can fully trust. The trading platform chosen by you should also be the kind that makes you feel comfortable and at ease.
