Thousands of active forex brokers in the online trading space have become somewhat saturated in recent years. This then forces the platform to be more competitive with a standout display from saturation. brokers with welcome bonus are one strategy to attract the attention of traders, and this can also be very profitable for traders.
In short, the forex broker will offer a signup bonus for those who have not opened an account. This usually comes as a matched deposit bonus, meaning that your initial deposit will be increased by a certain percentage. In other cases, you may be offered a no deposit bonus. Check out the following review!
Forex Bonus Terms and Conditions
While the examples above illustrate how profitable forex bonuses can be, it’s not just a case of getting bonus funds and then cashing them out. Instead, you need to be aware of several terms and conditions that brokers usually set up.
Minimum Trade Amount to Withdraw
The biggest thing preventing you from being able to withdraw your forex bonus is the minimum trade. Say you deposit £500 and you receive a £250 bonus – making your starting balance £750. If you can withdraw £750 directly from the forex broker and into your bank account – this is not a very good business model for the platform. Instead, the platform wants you to use the bonus funds to trade.
Thus, your bonus funds are effectively frozen until you meet certain conditions. In most cases, you will have part of your bonus balance released as cash which can be withdrawn when you meet a certain trade size. For example, a broker may release £1 of your bonus for every £10,000 you trade.
It means:
- You get £250. bonus funds
- The broker will release £1 for every £10,000 traded
- £10,000 x £250 = £2.5 million
- You will therefore need to trade a total of £2.5m to release the full £250 and thus – withdraw the bonus in its entirety
On the one hand, the minimum trade amount of £2.5m is no less than a huge amount – especially if you consider that the bonus is only £250. As such, you will have a much better chance of meeting your bonus target if you:
- Engage in day trading placing dozens of trades per day
- Often apply leverage to your trades
- Your trade size is usually large
Deadline
If the above requirements are not difficult enough, you also need to take into account the time limit usually provided by forex bonuses. This is another tactic used by the platform to make the bonus payment process more challenging. In most cases, the broker will give you 30 days to use the bonus funds before they are revoked. This means that any bonus funds remaining in your account after the expiration date will be deleted.
Eligible Couple
In some cases, forex bonuses may set limits on certain currency pairs. Though majors and minors are usually fine for employing your bonus funds, exotic pairs may not be covered. Therefore, make sure you check the terms and conditions to make sure your preferred forex pair is allowed.
Supported Nationalities
Some forex brokers will only offer bonuses for certain countries. This is why you should always use a domain that matches your country of residence – because brokers usually have multiple websites for different regions.
Minimum Deposit
Most forex bonuses come with a minimum deposit. Promotions usually only list the maximum bonus amount allowed, so you’ll have to study the terms and conditions to find one.
Wrapping Up
If you have read our guide completely, you should now have a solid understanding of what forex bonuses are and how they work. You will also know that brokers usually offer matching deposit bonuses or no deposit bonuses. Either way, you should make sure you fully understand the terms and conditions of the bonus. Most importantly, it centers on the amount you will need to trade before a withdrawal can be made. In most cases, converting a forex bonus into withdrawable cash will be very difficult.
