Looking for a Way to Boost Your Trading Capital? Read our Guide to Forex Deposit Bonuses

Deposit BonusThe variety of people who participate in Forex trading is possibly greater than any other form of investment. Forex trading has been going on for years, but it is only in the last few decades that it has attracted attention from the ordinary man and woman on the street. This is because Forex trading has become available to the Average Joe with the introduction of online trading and the large number of online Forex brokers now offering their services. Something else that has led to such an increase in its popularity is the introduction of the Forex deposit bonus. Not quite as favored as the bonuses offered in other forms of business such as binary options trading, online gambling, and spread betting, it is nevertheless a great way for the small trader to understand the market and decide whether it is a suitable form of investment. So let’s continue with all the information you need to help you decide whether to take advantage of a spot of free trading cash.

The different types of Forex deposit bonus available

A deposit bonus in the Forex world is a sum of trading cash that is awarded when a trader makes a deposit into their trading account. The amount required can vary from broker to broker, as can the bonus amount. It is generally expressed as a percentage of the deposit made, and could be 5%, 25%, 50% or more. There are some brokers that offer up to 200% or even larger, however, most of the more popular brokers will limit it to 100%. As a general rule of thumb, you will find most trusted and reliable brokers find there is little need to offer a huge range of Forex bonuses, while those on the fringe tend to offer much more. However, we have to stress you cannot judge the reliability of a broker solely on the bonus structure. There are plenty of other factors to take into account when choosing the best Forex broker.

* T&C’s apply to each of the offers. Click “Trade” for more details

When talking about deposit bonuses, Forex traders should also consider the no deposit bonus. It is a great way for traders to start trading without risking any real money. While a demo account is also a great way to learn about Forex trading, making use of a no-deposit free bonus means you can trade in a real live environment, rather than a virtual one which is never quite the same. A no-deposit bonus also allows traders to enjoy a risk-free environment which offers opportunities for evaluating trading strategies in a real-life situation. As with a deposit bonus, a Forex no deposit bonus can range in size, depending on the broker. It could be just $1 or as much as $1000. We should, however, point out there are going to be some restrictions if you want to withdraw any profits made by using such a bonus.

Are there any benefits to using a Forex deposit bonus?

Of course, there are. They include:

Well, those are the good points, but are there any disadvantages?

The downside of using a deposit bonus in Forex trading

Unfortunately, while a Forex deposit bonus may seem too good to turn down, there are a few disadvantages that must be mentioned, as they can limit the freedom traders have over their trading capital in a significant way. There aren’t many Forex brokers that don’t attach some very onerous terms and conditions to any Forex deposit bonuses that are offered. And these terms and conditions have to be agreed to before the bonus is given. We would advise each and every one of you to make sure you read and understand them completely before signing up for the offer. And under no circumstances should you tick the box to say you agree to them without fully appreciating what is entailed. Some of the terms that are attached to bonuses are really quite outrageous and some almost impossible to achieve. And have the potential to lead to traders being unable to withdraw their initial investment.

A deposit bonus in Forex is added as a credit to a trading account and normally it is not possible for the bonus to be withdrawn. And this can be the case even if a trader has satisfied the terms and conditions. A broker will use its discretion to decide whether any profits made with the help of bonus trading cash can be withdrawn or not. While undertaking our research for the information contained in this site we encountered a large number of disgruntled traders who had been caught out when trying to withdraw profits made using bonuses, and it seems that bonuses rate at the top of the list for issues between brokers and clients.

A no deposit bonus is no different in this regard, and cause just as many problems for traders. The terms and conditions are nearly always very strict, and even if the profits made are good it is likely a deposit will have to be made in order to make a withdrawal.

Is it sensible to accept a Forex deposit or better to walk on by?

We’re not going to tell you that Forex bonuses are inherently a bad thing, but we will stress that a trader should fully understand what they are letting themselves in for. Appreciating the good and the bad side of a deposit bonus in Forex is vital before choosing to take advantage of one that is offered. The same kind of advice goes for any sort of investment. An investor should take care investing their money and be completely confident they can satisfy any terms and conditions. How many times do we blindly tick the box when asked to agree to certain terms and conditions? In many instances, this kind of approach really doesn’t matter. But not with a deposit Forex bonus, as this would be a recipe for disaster.

If you’re just starting out and only have a small initial investment, opting for a bonus will enable you to open more meaningful positions. A bonus of say 200% or 400% is going to boost your account equity in a big way. There are a number of special accounts, such as VIP accounts that will qualify the account holder for bigger Forex bonuses, but it is rare that such a serious investor will be tempted to take the risk. Whether or not to opt for a bonus is not a question we can truthfully answer. Each and every one of you reading this is going to have different goals, styles, equity, and requirements. And because of this, there isn’t a one answer fits all scenarios. It’s a personal decision that a trader has to make for themselves.

Let’s finish by giving you a few tips if you might be considering a Forex deposit bonus.

Consider the following before accepting a deposit bonus……

Whether you choose to trade with the help of a deposit bonus is entirely up to you. We can only give you both sides of the story so you are able to make an informed choice. While some of the bonuses currently available may seem to be truly amazing it is rarely the case that they are. That being said, there is a place for all kinds of bonuses in the world of Forex trading, and as long as you’re sensible and enter into the arena with your eyes wide open they can be a really good thing.