Before telling you where to look for the best promotions and special offers different brokers provide, you should better get aware of what a Forex bonus actually is. A Forex bonus is a regular promotion that is provided either to a new customer or to an existing and already registered customer on a website. These bonuses are given with no obligations for you like paying or doing anything specific. The only duty you have is to make an official registration in the website. On the other side, some of the bonuses require you to make deposits in your account. But, let`s check out the different bonus types. It could be easier for you to understand what exactly a bonus is, what the best Forex bonuses are and how to work with them.
As you can probably guess, a Forex deposit bonus is a bonus that is closely connected to the deposits you make. Usually, such a bonus is available for all the clients. The only condition is to make a deposit – either an initial, or a next one in the website. Of course, you cannot apply for such a bonus in case you are not registered on the website. Keep in mind that the Forex deposit bonus us usually measured in %. So here is an example for you to have a slight idea about this type of a special promotion on a foreign currency exchange platform. Imagine you are provided with a 50% deposit bonus and you make a deposit of 100 $. When you make the transfer with one of the available payment methods, you will have not 100, but 150 $ in your account to trade with.
Bonuses – Advantages
The biggest advantage is that we can have more capital to trade – For example if you deposit $250 and the broker offers $250, you get $500 to trade. Not only can we place higher value orders, even following the rules of risk management , we also have more leeway to make mistakes. Thus, we duplicate our profits, because we’re working with $500 but only deposited half.
A higher account balance to use Martingale –
Although I’m not a proponent of this system, the truth is that there are many strategies and traders that use Martingale as a trading system. By receiving a 100% bonus you have more leeway to use this strategy.
– Being able to withdraw the bonus – In the case of traders who can achieve the volume required by the broker and in the cases where they can withdraw the bonus, it’s more money and more profit for the trader. One of the brokers offering the value of the bonus is banc de binary.
How does a deposit bonus Forex usually work?
There are many bonuses offered by brokers with some of them being given to you post-trading, and others are deposited to your account as soon as you have completed a deposit. Bonuses that are known as rebates are credited to your account once you have completed a trade, while regular bonuses may require you to carry out quite a number of trades first.
In this article we are going to focus on the most beneficial bonus for all traders, which is a bonus that is given to you straight away and can be cashed out. So how does it work? As this is a deposit bonus, a trader has to of course make a Forex bonus deposit. Usually, once the account has been deposited, it may take a few hours (or days, in some exceptional cases) to actually receive the bonus on your account. Once the bonus is there, a trader may start opening and closing positions with the aim to trade the needed volume in order to claim the bonus as his own property. Once a trader has completed the needed volume the bonus money can be transferred from the broker to the trader. After this, a person can do whatever he wants with these funds. Whilst this sounds relatively simple, it can get tricky. Let’s look at why below.
How to Choose a Forex Broker
Until a little more than a decade ago investing meant doing all your trading by phone. For every action, you had to call your broker and place an order. Online trading has changed all that and today you can manage every aspect of your trading right from the broker’s online trading platform. Simple, right? But the question is how to choose a Forex broker when there are so many choices on the net today. New traders are offered a huge variety of Forex brokers to choose from. So how do you choose? It all comes down to finding the broker that you think will best suit your needs. We are here to help you do just that.
Remember: there is no such thing as “the best Forex broker”. What you’re looking for is the best broker for your needs. By knowing the kind of trading experience you want to get, you can decide on the broker who is right for you.
In this article, we will try to make the selection process simpler and easier so you can focus on investment opportunities, rather than which online broker to trade with.
Main Parameters to Check Before Choosing a Good Forex Broker
1. Regulations/ Licenses
We advise you to only choose brokers authorized and regulated by leading regulation authorities like CFTC, NFA, FSA.
Why? It indicates a broker’s reliability and will protect your money.
Plus500 and AvaTrade are good examples for fully regulated online brokers.
2. Easy to Use Forex Trading Platform
Online Forex trading needs to be simple, intuitive and easy to trade. A good User Interface is important.
Markets.com, Plus500, and eToro have the best forex platforms in the industry for beginners.
3. Customer Support
This is a key point. Good and efficient support is a must because you are probably going to use it.
We advise you to communicate a bit with brokers’ customer service reps before depositing.
Ask a few questions by mail or over the phone before opening an account.
Get a feeling for the speed of service as well as its quality and availability.
eToro, 4XP, and FXCM all provide fast, high-quality support.
4. Leverage Options
Different Forex brokers offer different leverages.
The higher the leverage you use, the more profit you can potentially make, but the higher risk you will take also.
That’s why there is no best level of leverage, it depends on your trading style.
There are some brokers that offer up to x100, x200 and even more in some cases