One of the primary objectives of trading in foreign exchange markets is to earn a profit. By making an initial investment, every trader wants to reap rich dividends, and choosing the right kind of a broker can prove instrumental in realizing this aim. In the forex market, the number of brokers and their types has expanded over the years, and with increased competitiveness, brokers have come out with the concept of forex broker bonuses to lure the investors.
Importance of Forex Broker Bonuses
Forex Broker Bonuses play an important role in enticing investors and make a specific broker attractive over others. In fact, bonuses are beneficial for both investors and brokers, as the concept creates a win-win situation for both parties. While for the investor bonuses come handy in adding more money to their account or using the extra leverage, brokers will be benefited in terms of more traffic of investors who are willing to use their platform for trading in foreign exchange. In this article, we give you information about a different type of Forex broker bonuses that are popular among investors and help you to select the best bonus that suits your requirements the most.
It is very much apparent from the name that the welcome bonus is offered to an investor when he/she joins a trading platform for the first time. It is a symbol of gratitude by the broker to the investor, thanking him for availing the services of the platform. While some brokers allow welcome bonuses to be used in your trading, others won’t allow availing the trading facility with welcome bonuses. There is no risk involved in availing the welcome bonus, although there is a difference in the terms and conditions under which you can avail your welcome bonus.
This specific type of bonus is primarily aimed to reward investors for showing their loyalty to a particular broker or type of platform. This is also a weapon to break the loyalty of investors who are sticking with competitors’ platforms for their investment needs. It is generally offered to an investor who is ready to use all the trading services or at least constellations of the services offered by a particular trading platform. For receiving a loyalty bonus, you must qualify certain conditions laid out by the broker, especially the ones which prove that you have remained loyal to the platform for a long period of time, or your association has brought some special benefits to the broker.
Depending upon the rules and regulations of the broker, one can utilize deposit bonuses to have an additional margin for the trading. It is a bonus offered when you deposit a certain amount of money in your trading account. Consider an example where a particular broker is offering a 50% deposit bonus to the investors. If the investor decides to deposit $100 in the trading account, then the total amount of the money deposit in the account will be $150 as an additional $50 has come from the deposit bonus offered by the broker.
No Deposit Bonuses:
This kind of bonus doesn’t depend upon the deposit money and is offered irrespective of the investment you make in your trading account. Like welcome bonuses, it can be offered to new traders who join a particular trading platform. Most times, no deposit bonus is offered in a particular amount and not as a particular percentage as the case with deposit bonuses. No deposit bonus is attractive to investors as it provides an opportunity to have some rewards even without investing a penny in the trading account. You can use no deposit bonus for various purposes, including the trading, but again, the specific terms and conditions of a particular broker need to be looked into before concluding whether this bonus can be used for trading or not.
The concept of bonuses or rewards has long been used in a variety of industries to attract buyers. The same concept is now extensively used by brokers and is proving quite helpful in attracting new investors to their platforms. For investors also, the concept of bonuses makes a lot of sense as it will add to their investment potential and demonstrate the importance they hold as a customer to the broker. If utilized properly and sensibly, the forex broker bonuses can help your investment to grow while helping you to extract maximum benefits from the trading platform. For brokers, bonuses are an effective marketing strategy to attract new investors to their platforms and optimum use of this promotional technique is sure to prove beneficial for harnessing their business potential. Click here to check out the best forex brokers available in the market with their all features and experts’ reviews.