What is a forex bonus and how does it work?

 


If a forex broker gives its clients money as gifts it is called forex bonus. It is a gift from the broker to the forex trader. Forex bonus is also known as promotion. Trading forex with bonus is a great attraction for the traders. Apparently, forex bonuses are free but the brokers have greater agenda regarding forex brokers bonuses. It is given in order to attract the traders toward a particular broker.

The broker uses fx bonus to get more and more clients. In most cases, the broker does not posit any requirements from the client. But sometimes there are certain conditions to avail the bonus, for example, one has to deposit a certain amount of money to get the bonus. This is called a deposit bonus.

Again, brokers offer different levels of rewards for different types of clients. More often a basic account holder receives fewer bonuses than a premium account holder. Furthermore, the bonus also varies according to time. In other words, brokers offer fresh forex bonus in a particular time while at other times there is no bonus.  Forex bonus also varies from broker to broker.

The renowned brokers can offer more bonuses than the less known ones. Moreover, the newer brokers offer more bonuses to get a large number of clients so that they can establish themselves in the forex market.

There are different kinds of forex bonuses. A trader should have sound knowledge about the various types of free forex bonus to avail of the best deals. The details about these various types of forex bonuses are explained below for the convenience of the forex traders: 

  • 1.       Welcome forex bonus: Welcome forex bonus is meant for the new traders. New traders get bonuses for joining the broker. It is a policy of brokers to get new clients.
  • 2.       Forex deposit bonus: Forex deposit bonus depends on the amount of deposit of the client. At first, the trade has to deposit a minimum amount of money in his account. After that, a particular bonus will be added to that account from the broker. For example, a broker can declare that it will give 50% deposit bonus. That means if a trader deposits $100, he will have total $150 to trade in forex.
  • 3.       No deposit bonus: when a trader can get a bonus only by opening a new trading account with a particular broker then it is called a deposit bonus. The trader does not need to deposit money in his account. That means, the trader gets free funds for trading. Brokers place certain conditions for no deposit bonus for example some brokers require the trader to deposit a certain amount before withdrawing any profit by trading the bonus money. However, no deposit bonus is the best forex bonus. The trader does not need to risk his money to trade in forex and even if he loses a deal, it is not his own money.
  • 4.       Volume bonus: If a trader trades in high volume, he can get a volume bonus. It is best for long-term traders as they trade a large amount of money.
  • 5.       Pending forex bonus: It is the bonus that traders get but cannot use until they make trades from their account. The broker gives challenges to the trader that if he can make a particular number of trades then he can use the bonus. This bonus is not much beneficial for the traders as it involves strict rules.
  • 6.       Forex reloads bonus: When the broker offers a bonus for re-depositing a trader’s account then it is reloaded bonus. Different brokers provide different percentages of reload bonuses on each deposit. It is suitable for regular and old traders.
  • 7.       Bonus for regular clients and VIP clients: The VIP or premium account holders get a special bonus from the broker. This is a very profitable bonus available only for VIP clients. On the other hand, there is also a bonus for regular clients but the amount and frequency are less than that of VIP clients. 
These are the most common types of bonuses available for the forex trader. Some facts should be considered during selecting the best forex bonus. There are many options in the hand and the trader should focus on his requirements. Besides, the trader should also look for instant bonuses and avoid bonuses with lots of conditions.


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