Take Advantage of a No-Deposit Forex Bonus and Start Trading Forex Without Risking Your Hard-Earned Cash.
Recently, no-deposit Forex bonuses have received a lot of attention. Just type “Forex no deposit bonus” into your favourite search engine and you’ll get thousands of hits. No-deposit bonuses have been around for many years, but mostly in the online gambling industry. However, more recently a number of Forex brokers have started using this very effective tool to hook and reel in new customers.
What is a no-deposit Forex bonus?
A no-deposit Forex bonus allows traders to start trading without investing any of their own cash. It gives traders an opportunity to make a significant profit without any risk. Forex no-deposit bonuses are generally given to new customers when they first open a trading account with a broker. There are only a few brokers who offer such a bonus, which means there aren’t a lot of choices. They have become very popular for new traders, especially those with little cash to invest; but there are also a number of more experienced traders who like to take advantage of these offers.
Signing up for a Forex no-deposit bonus is easy.
You won’t find all Forex brokers offering a no-deposit bonus, but there are a number that do. The amount can be as little as $5 or as much as $500. Larger amounts than that are very rare, and generally they tend to range between $25 and $100. Some traders might consider this to be a rather small amount, but it is still better than opening a demo account or risking a small amount of your own cash, especially if you have little trading experience.
How to use a no-deposit bonus to your advantage
A no-deposit bonus could be considered as a way to achieve untold riches, but this sort of outlook would be a mistake. Don’t think you can make reckless trading decisions just because the trading cash was given to you for free. Treat the money as your own, and once you’ve made a few trades, and hopefully a little profit, you should feel more connected, and be able to add some of your own money to your equity. This should stop you making hasty and risky trading decisions. Keep within the confines of your own strategy even though you’re starting with bonus money, and don’t let yourself deviate or discard sensible money management principles.
You should make yourself aware of any terms and conditions, as if you want to withdraw the no-deposit bonus and any associated profits, you will likely have to comply with them. It is possible to create a steady income stream with the help of a small initial bonus, but you will need a good strategy, and you will need to be aware of and understand the rules of the game.
Never forget why Forex brokers offer a no-deposit bonus.
The main reason for Forex brokers to offer a no-deposit bonus is to increase their visibility and bring new customers on board. This will lead eventually to increased revenue for them when the new traders start to trade with their own cash. A broker has to use its own operating capital to provide the no-deposit bonuses, and therefore they are taking all the risk. It is very common for traders to quickly use up the Forex bonus and find themselves hooked with a gambling mentality. This is the reason why you should treat any kind of no-deposit bonus with caution, and not allow yourself to get carried away.
The no-deposit Forex broker is aware of this mentality and is betting on the new trader getting carried away with trading. Once hooked on the experience, the new trader will feel the need to get back on the market and do anything they can to invest more and recover their losses. It is only natural for a trader to want to deposit more money and keep trading with the broker, and this is what the broker is counting on. No wonder then that a number of Forex brokers use this very successful marketing tactic.
Be wary of the terms and conditions attached to the no-deposit Forex bonus.
We’ve already mentioned there will be some terms and conditions attached to such an attractive Forex bonus, so let’s look at what you’ll be expected to do in return for the free cash:
- No-deposit bonuses are usually restricted to one per person/household/IP address. Should you try to claim more than one no-deposit bonus you may find yourself banned from participating, and all funds will be taken back by the broker.
- No-deposit bonuses tend to be restricted to certain geographical locations.
- Brokers use their own discretion when it comes to approving or denying bonus applications.
- In order to claim a no-deposit Forex bonus, you will need to have a verified trading account.
- Brokers have their own policies with regard to withdrawing any profits made with the help of a no-deposit bonus. Some traders will require a deposit to be made before a trader makes a withdrawal, and others may require that a specified number of lots are traded.
The pros and cons of a no-deposit Forex bonus
Using a no-deposit bonus enables a trader to enter the market without any risk. It also allows the inexperienced trader to learn how Forex trading works. This is also possible should you choose to open a demo account, but the downside of a demo account is that it operates in the virtual world, and in no way resembles real live market trading.
When you trade in the market using a no-deposit bonus there is no real money on the line, which means that there is no emotional attachment to the money, nor any disturbance in your trading psyche; which can work in favour of your strategy, but can also work against it.
The fact that a trader has no emotional attachment to the funds they are using for trading can lead inexperienced traders to resort to gambling tactics, which can be very dangerous, and not a good habit to get into.
The biggest downside of using a no-deposit Forex bonus is the terms and conditions that will prevent a trader from withdrawing profits, even if they trade for a long period of time. As long as you are aware of this, then no-deposit Forex bonuses can be useful for gaining experience, but just don’t expect to get rich quick and be able to take your profits and run.
Tips for finding the best no-deposit Forex broker bonus
Finding the best no-deposit Forex bonus is pretty much the same as finding the best Forex broker. There are a number of factors you should consider, and a number of different places to look for information.
Ask for recommendations.
The Forex world is a very sharing community of people, so don’t be afraid to ask for advice from friends and other Forex traders.
Perform an online search.
You’ll be amazed at the number of hits you get if you just type “no deposit Forex bonus” into your usual search engine. In fact, you’ll probably get so many it’ll be a struggle to know where to start. Bear in mind, however, that a number of hits will be repeated, and many of them are paid ads. But having a number of possibilities will mean you’ll be in a position to do more specific research.
Read some Forex broker reviews…
… and we don’t just mean the ones that’ll we’ll be sharing in our Forex broker review pages. There are a number of other Forex review sites, and they’ll usually feature the latest bonuses, including those that require no deposit.
Sign up with a Forex trading forum.
As well as sites that concentrate on Forex reviews, there are also a number of Forex forums where everyday traders share their views and experiences of the world of Forex trading.
Now that you’ve be given all the pertinent details in relation to no-deposit Forex bonuses, you’re in a much better position to decide whether they are right for you. We can’t advise you on that decision, as you are all different and have your own expectations and requirements. What we can do is give you both sides of the story and enable you to make a more informed choice. There will be a number of times in your Forex trading journey when you will be required to make a decision. Keep our site as one of your favourites, because we’ll be giving you all the information you need to make the choices much easier.
Remember that Forex trading is supposed to be fun and exciting, and is much more than a way of making money. It is a community of like-minded people, a way to learn more about the world and economics, a challenge and a thrill. We hope you get to enjoy it as much as we do.