A Forex Bonus Offering Far More Than Just Trading Cash – Forex Forecast Bonuses
The world of Forex trading is ever-changing; in fact, it never seems to stand still. The foreign currency markets are open 24 hours a day, 5 days a week. Brokers seem to be offering exciting new services, innovative trading platforms are introduced, and Forex bonuses get bigger and better. Some things tend to stay the same, such as no-deposit bonuses and deposit bonuses, but there are also new bonuses being introduced to keep clients entertained. One of these new types of bonuses is the Forex forecast bonus, and we’ll be explaining how it works right here.
What is a Forex forecast bonus?
Forex forecast bonuses provide participants with prizes in the form of trading cash, deposit bonuses, rewards, cash back, or prizes for making a correct prediction in relation to the future price of an asset. In our case, it will be the price of a currency pair, but it could just as easily be any other financial instrument. Some of the industry’s leading brokers offer such bonuses, and they are essentially aimed at traders with a little more experience in the market. Forecast bonuses are a great opportunity for traders to earn extra gifts and cash prizes, and can make trading a little more exciting.
FX forecast bonus – How does it work?
Basically, a forecast bonus in the world of Forex trading is a contest, in which participants have to correctly predict the future value of a particular tradeable asset. There is usually only one winner: the one who makes the closest prediction. Of course, you will have to be a client of the Forex broker running the forecast bonus, and also comply with various requirements in order to take part. Forecast bonuses are usually run over a certain period of time, such as a week, month, or a year. If a customer is able to exactly predict the future price they will be the obvious winner; otherwise, it will be awarded to the customer who makes the closest prediction.
Traders use their skill and knowledge of the markets to analyse and correctly predict the markets’ movements. Or alternatively, they could choose to pick a random figure and hope for some good luck, although clearly the chances of winning will be greatly increased if some level of research and understanding is used. An educated guess is always going to be better than choosing some random number.
Individual brokers set up the competition and inform participants of the end date for the competition, which is the deadline by which a trader has to submit their prediction. When the contest has finished the broker will announce the winner and inform them of the prize. If there are a number of winners the prize will usually be split equally; but if there is only one prize the winner will be decided according to the terms and conditions of the forecast bonus.
Forex forecast bonuses vary from broker to broker.
There are a number of Forex brokers that run forecast bonus offers, but the prizes tend to differ. Many offer cash bonuses, but there are also a number that award gifts such as iPads and iPhones, shopping vouchers, or maybe even holidays or a car. Some brokers choose to operate a specific structure for this type of bonus, with the winner of the contest receiving the biggest prize, and other participants receiving smaller prizes such as cash credits that can be used for trading. Traders may be able to withdraw the forecast bonus after trading a certain number of lots, or may be able to withdraw any profits made from the bonus without any restrictions.
Is it possible to win this type of bonus on a regular basis?
Provided a trader has a good understanding of the various markets and is able to use technical analysis to predict how prices are going to react under certain market conditions, there is a certain amount of success that can be regularly achieved. It’s important to remember, though, that there will be a number of other participants with equal or better knowledge and skill. There are, however, a number of ways a trader can increase their chances of winning:
- Spend a good amount of time gaining an understanding of technical and fundamental analysis.
- Keep up to date with market trends and analysis, and predictions of industry experts.
- Trading a particular currency over a considerable length of time will mean you are more familiar with its price action.
- Gain an understanding of the behaviour and pattern of price movements over extended periods of time.
- Be aware of macroeconomic conditions that can have an effect on currency pairs.
- Get in as much practice as you can by entering lots of Forex forecast contests, and try to improve with each one, getting closer and closer to an accurate prediction.
How to find the best Forex forecast bonuses
Many of the leading and most popular Forex brokers run their own forecast bonuses, and we’ll be sure to mention any when writing our Forex reviews. Forecast bonuses are used by a number of other industry service providers, such as comparison websites, signals providers, and automated trading robot services. This type of forecast contest doesn’t usually require a contestant to open a trading account, or make a deposit or pay an entrance fee. Often they are organised in order to find the most talented people in the industry.
Forex forecast bonuses require more than just luck in order to be a winner. They act as a reward for talented and skilled traders who are able to successfully analyse the markets and make informed predictions. Many Forex brokers, signals providers, social trading platforms, and various other investment companies run regular competitions and contests in order to uncover the real talent hidden in the Forex trading industry. Anyone with the right skill and talent can make a sizeable income by accurately predicting prices, without risking any real money in the markets. If you think you’ve got what it takes, why not give it a go?