Bonus is something that attracts a lot of people – does not matter which business we are talking about. It is an excellent way to get more clients to your platform and expand your reach on the Internet. Without decent bonuses and loyalty programs, it is difficult for every entity to operate successfully.
The same goes for brokerage companies and financial services providers. As we have seen in the past years, the world of Forex demonstrated a tremendous surge compared to other activities. More and more people are engaging in this activity and the trend shows no signs of slowing down. Initially, such bonuses were almost impossible to withdraw, considering difficult conditions, however, a great number of companies provide bonuses and promotions from which you can really get a sense. Today we will talk about what bonuses you can take, what to look for in the conditions for granting a bonus, as well as how to use them correctly in trading.
Important Details
As we are talking about Forex bonuses, it is important to have a look at some important details, associated with receiving and in the future using the bonus. Here are the most common questions related to financial bonuses.
Does the bonus participate in trading?
The most important thing is to assess the degree of participation of the bonus in trading. Does the tradable bonus expire when the equity falls below the level of the bonus funds? If not, then such a bonus can be used both for collateral and to pay for the drawdown. This means that it seems to increase your account balance.
When you get a no deposit bonus, which is rare in the majority of cases, this bonus needs to be traded, to make the money withdrawable. This XM no deposit bonus promotion falls in the same category as its other counterparts. You need to trade this money and after that, if you meet the necessary requirements, the money will be available on your balance, which you can later transfer to your card.
Trade Turnover
The main obstacle to converting bonuses into “real money†is trade. The logic is simple: the more lots you need to trade, the more difficult it will be to withdraw the bonus. It is a big mistake to set working off the bonus as an end in itself. Nevertheless, if the trading system is designed for a high frequency of transactions, a simple calculation will show how long it will take to clear this bonus. When calculating, you should take into account the previous point – the maximum time for working out.
Limitations on withdrawal – are there any?
The bonus can be either withdrawable or not. It is important that the bonus does not limit the withdrawal of profits from the account in any way. If any additional actions are required to withdraw profit, such a bonus should not be accepted.
Leverage restrictions
Some types of bonuses may limit the maximum leverage. This is a very common trick, and it loses the whole point of using the bonus, as its utilization does not provide any benefit to the trader. In such cases, it is better to give preference to the standard account type with high leverage.
In trading, the bonus can be used in the same way as the increased leverage. Basically, the bonus allows you to open a larger position for the same funds.
What to look for?
So, you have been credited a bonus to your account. Let’s say your deposit is $100, and the bonus is 30%. And now you have $130 in your account. What are you doing? When you open a trade, you calculate a trading lot as usual, for example, based on the risk of 3% of the deposit per trade, but for the calculation, you take a deposit of not $100, but $130. For the rest, trade as usual.
The no deposit bonus can also be used to your advantage. Despite the fact that it is even more difficult (almost impossible) to withdraw compared to the usual one, it can be used to test the execution of orders with a broker and check simple trading strategies, as well as train your trading skills. Here you should pay attention to the size of the bonus. If it is enough only to open only one position with the minimum lot, then it will hardly be possible to derive any practical benefit from this.
Conclusion
You should not bet for an end in itself to fully work out the bonus. Strange as it may seem, but this is not beneficial for the company or the trader himself. Any trading involves risks, and all bonuses are calculated in such a way as not to cover even trading costs. At the same time, the correct use of the bonus can increase the profitability of the trade. If the bonus implies the full use of the funds issued, this should not negatively affect the trading process and may help you earn a little more for a while.
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