If you're new to the forex market, you may be thinking, "What is a bonus for?" In simple terms, a bonus is an additional amount of money added to your account, given without having to work for it. Many forex brokers will give traders' bonuses as a way to entice them to trade with them. Although this can be a great way to build your former career, beware of the pitfalls!
Why do traders get bonuses? Bonus for come in many forms. Some give traders free money, while others provide time-identifying software, such as the demo trading account. The software helps traders make trades based on real-time market data. While this might seem like an unnecessary expense, having the ability to make trades without investing any money can be a huge benefit.
Bonus forex is often provided by forex brokers, or brokers themselves. For example, MegaDroid, the best-selling currency trading program, has a "networking opportunity" for traders. Forex rebate sites are commonly visited by forex traders. These rebate sites, such as Forex Alliance, rebate traders' paradise, and FX Deals, rebate FX Online, among others, give traders rebate points that can be used to buy a variety of products, such as educational materials, books, and services. These websites sometimes have bonus points for trading in a particular currency pair or for a certain amount of time. Forex rebates are a great way for new traders to start learning the ropes.
Other forms of bonuses come in the form of "drip" deposit bonuses and "leverage" bonuses. Drip bonuses are given in increments, usually daily. The way it works is that traders receive a certain amount of bonus money delivered automatically into their bank accounts. Drip deposit bonuses are a great way for forex brokers to reward traders for their successful trades.
Brokers also give incentive programs through "leverage" programs. This is a means of incentive, as well as an effort to maintain good customer relations. In these types of bonus campaigns, the broker will give a certain bonus amount to the trader who reaches a certain monetary goal. It's important to note that if a broker offers leverage, it is typically at a much higher value than traditional "drip" bonuses. If a customer is new to trading or needs a larger bonus amount, a broker may prefer the drip bonuses.
When a trader manages to acquire a certain amount of bonus money, they are often offered the option to convert their forex deposit into bonus money. This is referred to as "leverage" by forex brokers. Some brokers even offer the flexibility to use their leverage. This can be done in a variety of ways, ranging from simple to complex.
Some brokers require that a certain number of free bonuses be utilized before they will provide any further incentives. This is typically for a limited amount of time. In some cases, brokers only offer bonuses on certain trades, such as "picks" and "bets." Some may also restrict the types of trades, a trader may make in order to avoid situations that could result in "fraudulent" traders utilizing their "stacked" bonuses.
Many forex brokers have specific policies about bonuses, so it is important to always read all the fine print. Some may offer incentives that are actually interest fees, which can make novices seem even more desperate to obtain a bonus. It is important to always read the terms and conditions of a forex broker before a bonus is obtained to ensure that the bonus will be effective and helpful to the trader.
Many traders prefer to earn forex deposit bonuses through forex options. These types of bonuses are much easier to obtain and do not require as much time or effort on the part of the trader. There is no minimum balance required, and there are usually no restrictions or cap on the number of trades that can be made with the bonus. This makes options a good choice for new traders who are looking to earn a small bonus. These bonuses can also be very useful to experienced traders who need a little extra incentive to continue trading. Options may be traded as often as the trader wants, which makes this form of bonus almost perfect for busy traders.
Another type of bonus offered by many forex brokers is the rollover deposit bonus. This bonus requires that the trader to place a specific amount of money with the broker in the beginning of their transaction. When the trade closes, that same amount of money is given back to the trader as a withdrawal. The rollover deposit bonus is not normally offered to new traders and is one of the most generous forms of forex broker promotions.
A final type of bonus offered by some brokers is the demo trading account. These demos allow new and experienced traders to practice their trading skills with fake accounts. Many forex brokers offer demo trading accounts as a promotion, and while they do not have the money deposit bonus, they do provide access to real money. New traders will find that these demo trading accounts are a great way to practice trading without putting any real money on the line.