Forex Bonus is very common in financial markets and is usually offered for traders. It is a promotional offer by which brokerage companies usually entice new traders. In the forex market, the trading bonus is usually a fixed amount of money or a certain percentage gifted to traders as they open an account, deposit money, or open a defined number of trades, depending on the bonus type.
A bonus is a sort of compensation given to traders for choosing a certain broker. It is how the broker rewards the trader’s choice.
Bonus is one of the most exciting promotional offers that encourage traders to step into the trading world. It is also a major factor in deciding which forex broker you’ll deal with besides spreads, commission, speed, and quality of the execution of trades.
What is Forex Bonus?
Brokers offer many types of forex bonus, some of them are given to you after proving yourself as an active trader. While others are being deposited to your account once completing the money deposit process. Some bonuses are known as rebates and are credited to your account when you complete a trade. On the other hand, regular bonuses sometimes require you to open a certain number of trades first in order to get that bonus.
Then how do the Forex trading bonuses work? In case of the deposit bonus, you have to make a Forex deposit, after accepting the broker’s terms & conditions. Once the account has been deposited, it may take a few hours, or days in some cases, to receive the bonus on your account. Once you receive your bonus, you may start trading with the aim to trade the required volume, in order to claim the bonus. Once you complete the required volume, the bonus money can be transferred from the broker to the account. After this, you can do whatever you want with these funds.
What are the Different Types of Forex Bonuses?
Forex brokers offer different types of bonuses, most of them usually conditioned by a certain action. Some brokers offer bonuses only by opening an account. Yes! As simple as that.
No Deposit Bonus:
No Deposit bonuses are some of the most popular promotional deals in forex trading. It means that the broker will gift new accounts with a bonus with no initial deposit required. No deposit bonus is usually a small amount between $10 to $100, and it is considerably smaller than the deposit bonuses.
The deposit bonus is the most common type of bonus and is given to customers upon their initial deposit. Typically, new customers get an instant bonus as a reward for opening a new account and making an initial deposit. It can be either a fixed amount of money or a percentage of the deposited amount.
The welcome bonus is exclusively offered to newcomers; who never had an account before. Similar to the no deposit bonus, it often doesn’t require initial deposits. It is one of the most popular types of forex bonus. However, this type of bonus is not always available and usually, it is offered for partnership cooperation to increase their business in new cities and markets.
Special VIP bonus:
On the other hand, if you are an active and old trader with some forex broker, you will be rewarded with some of the special programs for loyal clients. You need to stay with your forex broker for some time in order to claim such a bonus. Your experience with the forex broker is the main reason for you to be given such a forex bonus.
The VIP bonus is different, as in some cases you will need to create a VIP account to apply for the bonus. There is no way for you to receive a VIP bonus if you have signed in with an ordinary, micro, or any other different VIP account. This is relative and can vary from one broker to another. Just keep in mind that VIP bonuses are usually quite profitable and beneficial, so when you open an account with a broker, you may consider whether to use the VIP account feature.
Turnover bonuses work like rebates or cashback services and allow active traders to earn additional income for the trading turnover made. It directly rewards trading activity and volume. It works automatically, so you don’t have to do anything to receive such a bonus except for trading actively. Typically, the turnover bonus can be simplified as follows: when you trade X number of lots per month, you’ll receive Y amount of bonus money.
Some forex brokers offer their customers a bonus for every time they deposit money to their trading account, that one is called the reload bonus. It is because brokers understand that trader’s loyalty to the brokerage company needs to be rewarded. Hence, they offer repetitive bonuses rather than just receiving a single bonus after opening the trading account to keep them loyal. However, the percentage amount of the forex bonus might be lower than initial deposit bonuses.
Forex rebates are such trading instruments that bring win when loss comes. Forex rebates are popular by the name of rebate pips. This bonus is actually a kind of cash-back bonus that never leaves traders empty-handed, even when they lose. The offers can vary, and traders have a variety of options indeed. Many brokers want traders to trade as much as possible, so bonuses like this motivate trading efficiently. Rebate bonuses are aimed at beginners, experienced, and professional traders. This attractive offer excludes no group or level of traders.
LifeTime bonus from AximTrade is a special type of bonus that is not limited to a period of time and not related to any promotional campaign like regular bonuses. This bonus is available until the trader completely utilizes all available bonus amounts from all the Tiers. Therefore, this is highly valuable for traders as they can return to the account at any time and benefit from the forex bonus.
How to Choose the Best Forex Bonus?
In order to choose the best forex bonus, you’ll need to do some research, information gathering, and then comparing. One of the very common mistakes some traders make when choosing a forex bonus is that they build their entire choice of broker only on bonus size. In this case, traders may end up choosing a forex broker with wide spreads or high commissions per trade. This means that the forex bonus you earned will be charged as trading costs eventually.
Another mistake is that they ignore reading the terms and conditions for the bonus. Some brokers require meeting all of the necessary requirements to get the bonus. So, if you haven’t met these requirements, you will not get your bonus. Sometimes traders decide to deposit more money on their trading account than they are comfortable with, to maximize the bonus they get. This usually pushes them to be more nervous and make some poor trading decisions. Consequently, they will be losing more compared to their bonus earnings.
Choosing a Reliable Broker:
Always remember that choosing a reliable broker comes first, no matter how good the offered bonuses are. You need to only open an account and make a deposit with a broker that you trust, whose platform is easy to use and trades are executed smoothly, whose conditions you find favorable. It is very important to understand that you are going to trade in order to gain profit, and maybe it’s your source of income. So, a bonus should only be seen as a secondary benefit, not a priority.
After shortlisting a few brokers that you feel comfortable with, only then should you start checking which one of them offers attractive bonuses. Compare the benefits each broker offers you. In case you don’t see any announced forex bonus, do not be afraid to ask. Some good brokers may offer custom bonus proposals.
Comparing Bonus Terms:
When choosing a deposit bonus offer, it is important to go for brokers that can offer you bonus terms that you can comply with within your normal trading style. There are many deposit bonuses through which Forex brokers will offer you terms that are hard to be achieved unless you completely violate your essential risk management practices. So, you really should choose bonus terms that allow you to be relaxed while trading.
Wondering how to achieve this? Well, you can check how many days a broker offers to achieve the required trading volume. If you are an experienced trader, then check how much volume you have achieved within the same number of days in the past. If you are a fresh trader then you need to set a trading plan with clear objectives so you can decide if these requirements will suit your trading activity or not.
This way you will be able to focus on your trading strategy, rather than abiding by specific trading volume and think about how much more you have to achieve. This is a significantly important rule, as some traders usually make trades just so they can achieve the required trading volume. It ends up with major losses.
Trading the Bonus:
Remember that you should never employ any trading strategy just to cash out the bonus. The main concept here is to choose a bonus that fits your trading strategy, rather than adapting your strategy to the bonus. Once you select such a bonus, cashing it out will be rather easy. In some cases, you may find yourself in a situation wherein the bonus is about to expire, yet you still have some volume to achieve.
In such a case, you should calculate what the trading expenses for this volume are, and compare them to the size of the bonus you will get. If you find that the bonus is larger, then you can hedge your deals and achieve the trading volume without high risk. Note that this should only be completed only if the broker bonus deposit terms allow hedging.
What Advantages do Bonuses offer?
First, Increasing trading equity and investment capital. For example, if you deposit $2000 into your trading account and get a 20% bonus, which equals $400. So, the total account balance has increased to $2400. This enables you to hold more trades and swap larger lot sizes if you maximize the value of your original deposit. Shortly, a strong bonus provides you more opportunities for trading in the foreign exchange market and increases the odds of making more money.
Second, the leverage increases. The more money you have in your trading account, the larger the spot size you will choose. This raises your chances of making more money.
Third, examining how good a broker is. As mentioned earlier, you have to pay close attention to the terms and conditions of every bonus package. Some brokers would take back whatever bonuses you’ve received if you make a withdrawal. Others, on the other side, would only let you remove the bonus once you’ve traded a certain amount. You better look for a broker who provides proportional withdrawal of your bonus. So, let’s say that you withdrew 70% of the usable balance, the same percentage of your bonus will also be taken away. Yet, it is still a better deal than giving up your whole bonus.
Be aware of Bonus Scams
Some untrusted brokers may try to attract new and naïve customers by giving away valuable gifts. Many can offer traders smartphones and similar gifts for deposits. But this is not how the forex bonus work. What is the benefit of sending clients expensive items right after they have opened an account? Such brokers aren’t interested in building a reputation, so they will accept negative feedback.
Don’t get tempted by forex brokers that offer double or triple your deposit amount. These bonuses usually offer you nothing in return. Such huge bonuses are simply used to trick you into increasing your leverage and blocking your withdrawals so you will have to take risky trading decisions. It is important to know that most large bonuses are usually not available for withdrawal. And trading conditions attached to them are usually hard to achieve, especially when a trader sticks to proper risk management practices.
Enjoy Exclusive Bonus Offers with AximTrade
Now with AximTrade, you can enjoy limitless bonus offers from a 40% deposit bonus to a 100% single deposit bonus with a minimum deposit of $1. Unleash your true trading potential by maximizing your investing capital through a variety of exclusive bonus offers. You can always check all the offers and bonuses at promotions.
You can choose between various account types, based on your trading strategy, experience, and capital designed for investment. Choices include Standard, Cent, or ECN trading account. All accounts offer negative balance protection with a low spread from zero to 1 pip on all majors. Enjoy a variety of trading bonuses on all account types with a minimum deposit starting from $1. Any AximTrade client can hold up to 14 active trading accounts. You are allowed up to 7 Standard Accounts, 2 Cent accounts, and 5 ECN accounts per Active Member Area.
Try a Demo Account
If you are seeking risk-free trading, try now with a demo forex account. A demo account helps you to discover and experience the forex market without risking your capital through trading with virtual money. At Aximtrade, you are offered a demo account with real-time market data, and exclusive experience of trading tools for currency trading. Open your free demo account now.
Trade with a reliable Broker
Aximtrade is regulated by the Financial Conduct Authority Scheme (BVIFSC) which ensures broker’s compliance with the highest international standards and best conduct of business practices. This means you won’t have to worry about your funds or the privacy and confidentiality of your transactions.
You can also choose between various account types, based on your trading strategy, experience, and capital designed for investment. Choices include Standard, Cent, or ECN trading account.
Enjoy favorable trading conditions with Aximtrade; especially when it comes to margin and leverage levels. You can control your real-time risk exposure by monitoring your used and free margin as together make up your equity.
The leverage ratio depends on your account type and equity, up to 1:3000. Existing leverage can be reduced by applying custom leverage. AximTrade provides a leverage range that helps you choose your preferred risk level.
When it comes to trading platforms, you can execute your trades using MetaTrader 4, which is compatible with different operating systems so you can access your trading accounts anytime and anywhere. Trades are executed in real-time with no re-quotes and no rejection of orders policy. You can execute different market orders within seconds, choose from more than 49 currency pairs and multiple indicators. Last but not least, with AximTrade you are provided around-the-clock customer support even on weekends.
In conclusion, the forex bouns can be useful for new traders as they can get rewarded for entering the forex market. If you are a new trader, you should choose the best bonus for you depending on the initial capital you are willing to invest. But Remember, your decision should not be solely depending on the forex bonus or rewards, you’ll need to inspect what the broker can offer you in terms of liability, spreads, trading platform, and commissions as well.