8 Types of Welcome Bonus in Forex Trading
Bonuses for forex trading are essentially free money. However, you can only use them if you meet specific requirements and cannot use them elsewhere.
Why Do Brokers Offer Forex No-Deposit Bonuses and Other Bonuses?
Your broker may provide a no-deposit bonus or another form of bonus for a variety of reasons. This is done for a number of reasons, the most important of which is to provide value to you, the trader, and to bring in new customers for the broker.
In many regions, including those outside of Europe, this approach is generally recognized as valid. As a general rule, providing such bonuses is prohibited in the European Union. The European Securities and Markets Authority does this to prevent inexperienced traders from losing money.
If a broker doesn’t want to offer a no-deposit incentive, that’s fine. IC Markets, for instance, does not reward its consumers in any special way. That the company has a minimum commission and provides good service to customers is viewed as a bonus by them.
Different Types of Bonuses
Remember that there are many different sorts of bonuses to consider when selecting your forex broker bonus. What follows is a deeper dive into the specific broker bonus types that exist.
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Forex Deposit Bonus:
If you make a deposit into your forex account, you may be eligible for a bonus equal to a percentage of your deposit. Numerous brokers will offer a bonus that is proportional to the amount you deposit.
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Forex No Deposit Bonus:
As the name implies, forex no deposit bonus is a benefit that is granted to you without the need to make a deposit. It usually only requires filling out certain forms to get started. These funds are risk-free and can be used in live trading.
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Welcome Forex Bonus:
In some cases, the welcome bonus will function similarly to a no-deposit bonus. In some situations, the size of your first deposit will determine the size of your registration bonus. Some brokers offer welcome bonus forex of $50 as an incentive to new subscribers.
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Loyalty Program:
Like any other loyalty program, a forex broker rewards you for your continued business. With these kinds of schemes, your rewards accrue proportionally to the volume of trades you make. Rewards like these can take many forms, including but not limited to reduced trading fees, access to premium trading tools, swag, and even attendance at in-person events and meetings.
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Points System:
One possible basis for forex broker point systems is customer loyalty programs. The more you trade using these strategies, the more rewards you’ll receive. Redeeming these points for cash, automobiles, trips, and more is possible.
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Cash Back and Rebates:
Bonuses in the form of cash-back and rebate programs are also fairly frequent. In other words, this type of bonus allows you to make money back every time you trade a lot.
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Money Protection Bonus:
Forex brokers may offer a bonus known as a “Money Protection Bonus,” albeit it is not particularly frequent. Any losses exceeding a particular threshold may be repaid by your broker if they offer a bonus like this.
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Forex Contest Prize:
Forex firms regularly host contests where you can compete for prizes by trading against other participants using virtual funds. You can win real money, a car, and other cool rewards if you come out on top in these contests by making the most money off of virtual currency.
