No deposit bonus in Forex trading is basically a free initial deposit offered by the brokerage to help you get started trading forex without risking your hard-earned capital. A no deposit bonus is something no forex trader can afford to miss out on. It is a promotional offer offered by the brokerage in an attempt to attract new traders to the market. Usually, the only requirement from you is to open a forex account, claim the bonus, and trade with it for profit.
By the time you decide to trade forex online and start looking for a broker, you are most likely to come across several promotions of forex bonuses, many of which include a No Deposit Bonus. You might probably wonder what exactly a No Deposit Bonus is and why it is so popular in Forex trading. This article will give you a comprehensive understanding of a Forex Bonus, No Deposit Bonus, and how these bonuses can benefit you on your forex trading journey.
What is a Forex Bonus and How Does It Work?
A Forex bonus is basically an incentive offered by forex brokers to attract new traders and encourage existing ones to trade more and establish a mutually rewarding relationship. Forex bonuses give traders the chance to practice and grow their accounts by making it easier to enter the market. As all promotions come with certain terms and conditions, it is crucial to study each bonus program before you sign up with a specific broker.
Forex brokers offer several types of Forex bonuses to attract new clients and reward existing ones. Some of which are offered to you as an incentive when you open a forex account (Welcome Bonus), while some will be given to you after you have completed a trade, and others are deposited into your account after you have made a deposit (Deposit Bonus). While you have to make a deposit to claim a Deposit Bonus, some Forex brokers also offer different types of bonuses that require no initial deposit, commonly known as a No Deposit Bonus.
Even though these bonuses come in various forms, the one thing that is true about all of these bonuses is that they’re all beneficial!
What is a No Deposit Bonus in Forex Trading?
Forex No Deposit Bonus is one of the most usual and popular types of welcome bonuses offered by most Forex Brokers worldwide. Unlike other types of Forex Bonuses, a No Deposit Bonus does not require you to make any deposits, so you don’t need to be concerned about risking any of your funds to trade in the market. When compared to a Deposit bonus, a No Deposit bonus is much smaller, and typically varies between $10 and $100. Here’s how to trade Forex with a $100.
The Forex No Deposit Bonus is said to be the best Forex bonus type due to its logical nature since you are not risking or investing anything, but you can still trade and win. In the event that you lose using the no deposit bonus, you do not actually lose anything, nor will you have to pay anything to the broker. In contrast, if you do win, you won’t have to pay the broker back for the capital he provided. Just open a forex account and take advantage of the free trading experience with a competent broker.
Who is the best candidate for the Forex No Deposit Bonus?
Due to the fact that you can actually get real money into your account, it’s a perfect fit for everyone. Here, we have outlined some categories that can most benefit from a Forex No Deposit Bonus scheme:
- Newbie Forex Traders: A newbie trader with limited experience in live trading can sign up for forex no deposit bonus offers. Their first move into the market will be easier since there is no risk of losing money. Furthermore, a steady performance with a bonus trading account can help in becoming a professional trader.
- Traders who recently lost all their money: Never take the loss of your trading account as a disaster. Obtaining a forex bonus without a deposit may encourage you to consider starting over. The biggest advantage of a no deposit bonus is that it gives you a second shot at proving yourself on the market, despite its limitations in terms of size and application.
- Traders with multiple Forex accounts: If you have experience trading multiple forex accounts, you may also increase your profits by adding a bonus trading account. TUsually, there are no restrictions on how many bonus trading accounts a trader is allowed to have in total. Therefore, you can choose to participate in multiple no deposit bonus promotions for enhancing your trading credibility.
One of the most risk-free ways to get started with real-time forex trading is with a no-deposit forex bonus. But you should not solely base your decision on forex bonuses or rewards; you should also check what the broker offers in terms of liability, spreads, trading platform, and commissions.
Advantages of Forex No Deposit Bonus
Having the appropriate trading knowledge is extremely important regardless of whether you are a beginner or an experienced trader. Forex traders need to know when & how to use a Forex bonus effectively to get the maximum profit out of it. Here’s how to best utilize a Forex No Deposit Bonus to your advantage and maximize your profit potential:
- Helps Understand the Broker: As mentioned earlier, the Forex No Deposit Bonus is an opportunity for traders to make money from a specific broker by simply connecting and trading with them. Thus, regardless of whether you are a beginner or a professional trader, this is a tremendous opportunity for you.
- Risk-Free Trading Opportunity: Since a No Deposit Bonus doesn’t require you to deposit any funds, trading with it can be considered a risk-free venture. Trading with real money in an account under such promotional offers traders a great chance to experience real market trading. All you will have to spend is your time and effort, and not a penny from your pocket.
- Best for Beginners: Despite the fact that any level of trader can take advantage of a No Deposit Bonus from a new broker, to be fair here, this free forex bonus offers excellent benefits for beginners who are concerned about boosting their trading skills in the forex market without losing a penny.
- Getting to know a trading platform: The No Deposit Forex Bonus can be extremely helpful when it comes to getting familiar with a broker’s trading methodologies, the trading instruments they offer, and assessing the trading platform they provide.
- Better than Demo accounts: Getting started in Forex trading with a No Deposit Bonus is much better than starting with a forex demo account. Because trading with demo accounts can sometimes make people trade recklessly as they don’t get the fear of losing real money. In contrast, a No Deposit Bonus offers real funds with which you can implement various risk management strategies to keep your capital under control.
- Helps Identify Scam Brokers: No Deposit Bonuses provide an indication as to whether or not a broker is a scam. If a brokerage strictly adheres to all the requirements and obligations, it is worth trading with. If not, you were at least able to identify a scam right away without spending anything. By receiving bonuses, you can try different tools, test the order execution speed and other features to decide if a broker is the right fit for you.
There is always something traders can do to improve their performance. Your cash flow can be quickly threatened if you can’t keep up with the market. Forex No Deposit Bonuses are one of the best ways to stay informed of the market, as they allow you to get a deeper understanding of the mechanics of trading.
Disadvantages of Forex No Deposit Bonus
Even with the tremendous opportunities offered by a No Deposit Bonus, there are still some drawbacks. The following are some disadvantages associated with No Deposit Forex bonuses offered by brokers:
- It’s not the way it looks: People entering the forex market have no idea how it works. It’s just that they know there’s a lot of money involved, and they want to get a piece of it. But that’s not the way it works. Though a No Deposit Bonus allows beginners to practice their skills and strategies without depositing money, it can be difficult to claim the bonus and meet its requirements. In this sense, you shouldn’t expect promotions to bring you a profit. It’s better to look at them as an opportunity to practice and learn.
- Possibility of Scammers: There is no doubt that bonus offers are one of the most important factors that traders consider before choosing a forex brokerage. However, not all bonuses are to be trusted, and some are hard to meet or simply scams. In fact, some are simply designed to drain your bank account by merely giving away a penny. Be sure to find out more information about a broker’s authority and license before registering on a broker’s website. Read the AximTrade Review to discover all benefits of trading with a regulated broker.
- Restrictions: There can be significantly more restrictions on the Forex no deposit bonus than on other bonus schemes. To brokers, it’s the equivalent of gambling on traders whom they barely know. Thus, they try to make sure the money is used as efficiently as possible. It is therefore inevitable that you will be required to read a bunch of special terms and conditions. Typically, such restrictions apply to trade lots, selected financial assets, and withdrawal volume.
- Limited Growth: No deposit bonuses are not so large; they vary between $10 and $100 depending on the broker. These small amounts may give you a start in the real world, but they may not be good enough for a profitable trading strategy. When your account has such a small amount of capital, you may feel uncomfortable using it if you want to make a considerable profit. It’s better to start with a Cent account if you’re a beginner looking to trade with substantial funds.
Though there are plenty of no deposit bonuses available in the forex market, it is not always easy to identify a legitimate broker offering a suitable offer. Be sure to carefully analyze the terms and conditions of a Forex bonus before using it, and stay clear of Forex trading scams.
Forex Deposit Bonus VS Forex No Deposit Bonus
Now that you know what the forex no deposit bonus is, would you like to know why it is different from the forex deposit bonus? It’s easy! We have put together a list of some characteristics below that make them different.
How to Choose the Best Forex Bonus?
If you want to choose the best forex bonus, you will need to do some research, gather information, and then compare. It is very common for traders to make the mistake of choosing their forex broker solely based on the size of the bonus. As a result, traders might end up choosing an online forex broker with wide spreads or high commissions per trade. Eventually, the forex bonus you earned will be charged as trading costs.
An additional mistake a trader makes is failing to read the bonus terms and conditions. To receive the bonus, some brokers require the trader to complete all the necessary requirements. Thus, if you haven’t met these requirements, your bonus will not be awarded.
It is common for traders to deposit more money than they can afford into their trading accounts to maximize the bonus they receive. This causes them to be more nervous and make poor trading decisions. As a result, they will lose more than their bonus earnings. Here’s how to open your first trade, and how doing so consciously can make you a lot of money and make forex trading a worthwhile endeavour.
Trade Forex with Exclusive Bonus Offers from AximTrade
AximTrade allows you to choose between various account types, based on your trading strategy, experience, and investment capital. Choices include Standard account, Cent account, ECN and Infinite leverage account. Forex Traders can execute different market orders within seconds, with more than 49 currency pairs and multiple indicators to choose from.
AximTrade offers a Lifetime bonus, which is not limited to a period of time and is not tied to any promotional campaign like regular bonuses. The bonus has no expiration date as long as the bonus amounts are used from all Tiers. Thus, this is extremely useful for traders, as they can get the forex broker bonus whenever they want.
If you have an excellent way of attracting clients and meet all the requirements to become an Introducing broker, you can also earn Forex rebates from AximTrade. AximTrade’s unparalleled competitive edge, commitment to quality standards, and unparalleled professionalism have exceeded the expectations of over 300,000 clients and partners.