Forex welcome bonus is an incentive offered by forex brokers to entice potential traders to open forex accounts and start trading without risking their own capital. Forex brokers offer many types of forex bonus that differ amounts and requirements. Some are given to traders after proving themselves as active traders, while others are claimed once they deposit money into their forex accounts. Regular bonuses require opening a certain number of trades in order to get the bonus.
How Forex Bonus Works?
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 your bonus.
But for volume bonus, you need to trade the required trading 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 is Forex Welcome Bonus?
Welcome bonus is a one-time bonus exclusively offered to newly registered accounts. Usually, a no deposit bonus that doesn’t require initial deposits to be earned. It is one of the most popular type of forex bonuses. However, not many brokers offer an unconditional welcome bonus.
A no Deposit bonus is a popular promotional deal 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, on the other hand, may be offered as a percentage of the total deposit amount.
Free Forex Welcome Bonus
The free Forex welcome bonus is typically a fixed value. This type of bonus is not usually a big one. The funds are credited to the bonus account directly after a trader opens the account. These funds allow the trader to open trades freely. However, certain requirements must be met before the trader can withdraw this money. Usually, a bonus account does have the same trading requirements as the standard forex welcome bonus, but with no deposit requirements.
How to Receive a Forex Welcome Bonus?
To receive a welcome bonus, you need first to open a forex account and verify your account with personal details. The next few steps will vary according to the welcome bonus requirements. In case of no deposit welcome bonus, you will receive it right away into your account after you open it. However, in case of the welcome bonus requires a money deposit or trading requirements, you will have to meet these requirements first by depositing or trading some lots before you are able to receive your bonus.
Advantages of Welcome Bonus
Forex welcome bonus offers some trading advantages that include providing additional funds for the clients to trade with. This is usually encouraging for new users and those who cannot afford to deposit a large amount. In the case of a free no deposit forex welcome bonus, the trader is provided with an opportunity to start trading on a live account, exploring the market and then make a deposit. Some brokers allow traders to withdraw the bonus funds depending on several conditions.
However, a welcome bonus may have some disadvantages as there are often several conditions for the forex welcome bonus to be earned, which create some limitations for the traders. Also, withdrawal of bonuses can be allowed only after the trader meets certain requirements. Trading with the forex welcome bonus generated different emotional reactions and magnify the risks of emotional trading which may lead to irrational trading decisions.
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 compare. 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.
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.
Trading Advantages of Forex Bonuses
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 with 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, examine 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 naive 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.
Trade with a Reliable Broker
AximTrade is a leading fast-growing forex broker and an award-winning brokerage service provider in the financial markets with top-notch technology and a highly advanced MT4 order execution.
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, ECN and Infinite leverage 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 Infinite leverage. 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 in the AximTrade review, you can find out that the broker provides 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. Forex Traders 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. Check full AximTrade Review to know more about our exclusive services.