What Are Deposit Bonuses In Forex, And How Do They Work?

When it comes to choosing the best broker for your forex trading needs, there are, of course, various points that you need to consider. However, did you know that many forex brokers will offer different deposit bonuses to help sweeten the deal?

It’s true – just as you may find deposit bonuses at various betting sites online, the same can apply to forex. Of course, betting and forex are two very different spheres! That said, it is always a good idea to look for deals and to read into terms and conditions that directly apply to your current financial standing and trading goals. For example, if you want to take up a 30% deposit bonus, it’s worth reading into why that broker may support you long term. Forex Traders, in fact, is a great place to start.

Let’s consider what deposit bonuses actually do, and how they might work for you in practice.

A deposit bonus is a deal sweetener

As mentioned, the idea behind a deposit bonus for forex is that it helps to sweeten your deal with a specific broker. This means that you get a little bit extra back from your investments by deciding to partner with a specific firm or individual.

A broker will provide you with a specific bonus that applies to your account once you open with it, and naturally, when you have made that all-important first deposit. This is the security that your forex broker will need so that it can secure you a great deal.

How does the deposit bonus work in practice?

Your deposit bonus is essentially a one-off credit that applies once you have paid into your account with a broker for the first time. There may be some terms and conditions that apply, such as making sure that you trade a specific amount or ensuring that you fulfil a list of requirements. Generally, if you intend to trade via forex regularly, these should not be too difficult to meet.

Deposit bonuses tend to be fairly lucrative, meaning that it is generally a good idea to compare between them as much as you can before you leap into a specific deal. There is also such a thing as a no deposit bonus, which tends to arrive at a smaller price.

Are there other types of bonuses?

On occasion, brokers may offer you rebates. These work just as you might expect. A forex rebate is a part-spread or agreed commission rate that returns to you once you have closed down on a given position. Therefore, if you decide to finish trading on a specific point or angle, you could be entitled to getting some of your money back.

However, as with any bonuses and deals, nothing is ever guaranteed with regard to how much is available from each broker. Broker bonuses will vary wildly, which is why – again – it is a very good idea to compare different options.

Do I need a deposit bonus to start trading in forex?

While it is entirely possible to start forex trading without any kind of deposit bonus, it may be a good way to help you get into the wild and wonderful world of trading. Forex can…