WHAT BONUSES FOREX ARE REALLY BENEFICIAL FOR TRADERS?
More and more people are interested in trading in the Forex market. And these are potential customers for companies that provide services for access to the Forex market. Only in the Russian market of these services do hundreds of brokerage companies work. Between them there is a tough competition for attracting as many traders as possible, as each customer makes a profit. To win the competition, Forex brokers try to offer as much as possible favorable terms of trade, attract potential customers for various kinds of bonuses, discounts, gifts, prizes and contests. All this is part of the marketing strategy. In each company it is organized in its own way, but there are common signs. In this article, we'll look at what bonuses brokers offer and what they give to the trader.
TYPES OF BONUSES
Bonus from the broker is usually expressed in a sum of money, which is transferred to the trading account of the trader. Bonuses differ in terms of receipt and methods of use. Often brokers provide a welcome bonus. Such a bonus is issued only once and only to new customers. Thus, the registration and opening of an account with a certain Forex broker is encouraged. The conditions for obtaining may be different, but a documentary confirmation of the identity is required. Welcome bonuses are credited to the first deposit in a fixed amount or as a percentage of the replenishment of the account. Some brokers give a welcome bonus without an obligatory replenishment of the deposit. Usually these are small fixed amounts. Call them - no deposit bonuses Forex.
There are two more types of bonuses that you can get without replenishing the deposit. But for this you need to fulfill certain conditions. Some brokers offer a bonus for attracting customers. Usually it's called "Bring a friend". The client of the company who invited the new trader receives a bonus in the form of a bonus to the trading account. A more difficult way is to contests on the demo. Winners of various contests on demo accounts receive prizes in the form of replenishment of a trading account. This money can not be withdrawn, but you can use it for trading and take profits.
What is the point of brokerage companies giving away so many bonuses? Although, of course, no broker does not give money, which you can just pick up. For a no-deposit bonus, the company simply buys a new customer. If a novice trader loses a bonus, the company loses nothing, even if it does not continue to trade. If the trade is successful, the client will increase the deposit and trade, making a profit. In addition, no deposit bonus is usually given for a certain period of time, after which you already have to make your own funds to continue trading. Some brokers allow you to withdraw revenue from a no deposit bonus only after the deposit is replenished.
Deposit bonuses that increase the size of the margin, encourage the trader to open positions of a larger volume, that is, to pay the broker a larger amount of commissions. The system of winning back bonuses is also aimed at increasing the broker's income. For each closed position, some part of the bonus becomes available for withdrawal. But this amount is much less than the commissions paid by the trader. And in case of withdrawal of the deposit, the bonus amount is proportionally reduced.