Are forex bonuses worth it?
There are a lot of different opinions out there when it comes to forex bonuses. Some traders think that bonuses are a great way to get started in the market, while others believe that they’re not worth the hassle. So, what’s the truth? Are forex bonuses worth it, and what are the terms & conditions you will want to pay attention to?
The answer will likely depend on your individual circumstances, and the type of forex bonus you are considering.
If you’re new to trading, or looking for a new trading platform, then a forex bonus could be a great way to get started without risking your own capital. However, if you’re an experienced trader, or like to keep your positions sizes small, then you might not find much value in a bonus that has trading volume conditions. Ultimately, it all comes down to your own goals, trading intentions, style, and objectives.
When you have an interest in boosting your trading account balance, then forex bonuses that are deposit matching could well be worth considering. As with all things trading related, you need to be aware of the potential risks involved and make sure you read the terms and conditions carefully before committing to anything.
Terms and conditions to watch in forex bonuses
You will find below the 5 main terms and conditions you may want to pay attention to when it comes to forex bonuses. This list should contain all the important elements from a trading perspective, but there will always be other minor t’s & c’s that are not trading related. These will include things such as not being an employee of the company, only being able to make use of one offer per user, and not being a politically exposed person.
If you feel that there is a chance you may not be eligible, or you would like any further information, you will want to spend even more time confirming this directly with the broker before you begin trading. Fortunately it is usually very easy to do so with online chat, or email.
5 forex bonus terms to know
1. Forex bonuses may be subject to conditions such as a minimum trading volume.
Make sure you understand the requirements before accepting the bonus, as some forex broker bonuses will have trading volumes that are almost impossible to achieve with the bonus amount alone. I have seen some forex bonuses of $30 for example that require 3 lots traded until you can qualify for a withdrawal, which is really rather difficult.
The intention of the broker is that you deposit additional funds alongside the bonus itself in order to meet these trading requirements; and if you are happy to do that, then you can reach this goal with some effort and time. If you are planning to trade with the bonus alone, then consider whether the trading volumes required to withdraw are within the realms of what you feel is achievable.
This is called a volume-based or turnover requirement, and it’s designed to discourage traders from simply taking the bonus and then cashing out immediately. If you do want to cash out right away, make sure you understand what the requirements are so that you don’t run into any problems later on.
2. Potential withdrawal restrictions
Forex bonuses will generally always have some form of withdrawal restrictions. In simple terms, this means you might not be able to access your funds right away if you make a profit, or that the bonus amount itself may not be a withdrawable bonus at all, but meant for you to trade with.
Always check the withdrawal restrictions in the terms and conditions before accepting any forex bonuses. This will help you avoid any unpleasant surprises later on when you are ready to withdraw.
3. Minimum deposit to qualify
Some brokers will require you to make a specified minimum deposit in order to qualify for a bonus. Usually deposit matching bonuses will have a minimum amount you need to make, and offer a percentage of that deposit in addition to your own balance.
For example, a broker may offer a 50% deposit bonus on all deposits over $1000. This means that if you make a deposit of $1500, you will receive an additional $750 from the broker, giving you a total account balance of $2250 to trade with.
Deposit bonuses can be a great way to boost your account balance, but make sure you understand the minimum deposit requirements before committing to anything as this will usually be combined with a trading volume requirement in addition.
4. The bonus may have an expiry date
This is usually one of the terms to watch with no deposit forex bonuses, which tend to be smaller in size. No deposit bonuses are a great way to test out a broker before committing any of your own funds, but just be aware that you may only have a limited time frame in which to take advantage of the offer, or trade with the bonus amount given.
5. Most forex bonuses are subject to residence restrictions
This is a very common condition, as many brokers only offer forex bonuses to traders from certain countries due to regulatory restrictions. In South Africa there are typically a good range of bonuses on offer. You will also find that if you are residing in Europe, or Australia for example, that forex bonuses are not going to be offered to you. This is by virtue of the fact that they are not allowed by the trading regulators of these regions.
Forex bonus terms in summary
Ultimately, whether or not a forex bonus is worth it for you will depend on your individual circumstances. If you’re new to forex trading, then a bonus could be a great way to get started as long as you understand the conditions that may be attached to it.
Overall, forex bonuses can be a great way to boost your account balance, but you need to be aware of the potential risks involved and make sure you read the terms and conditions carefully before accepting to move forward.
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