Forex trading is a great way for the average investor to make a substantial profit from a small investment in very little time. The expansion of trading in the Forex market by new investors has driven many of the established brokers to introduce programs to encourage these investors to use their services. One of these incentives involves bonus and cashback programs that will reward an investor for their trading activities.
These bonus and cashback advantages can vary wildly between brokers so it’s always a good idea to compare the various programs before making a final decision on where to invest. There are also a number of websites that can help with this comparison and actually list the brokers that are currently offering a bonus and cashback promotion. Using one of these sites can save you time and effort when comparing the various brokers and gives you a good measure of their differences.
Understand the Requirements
The key with any bonus or cashback program is to completely understand the details of the offer. Because these are very broker specific, you january have to open a new brokerage account to take advantage of them and they january also require a certain number of trades. Understanding the specifics of the program will enable you to get the most benefit. At the heart of all of these bonus and cashback programs is an effort to attract customers. If it’s your current Forex broker offering the program, they are doing it to compete with other brokers trying to convert you to a customer.
Deposit Bonuses
There are several ways that these deposit-based bonus and cashback programs typically work and the specifics will be provided on the brokerage site making the offer. One popular program involves providing you a bonus for money deposited directly into a brokerage account. This typically needs to be a new account and will also normally carry a minimum deposit amount to qualify. Some brokers will provide this type of bonus for any sized deposit but it january increase with higher amounts of deposit. This is an important detail since making one large deposit will benefit you more than several smaller ones. There january also be restrictions on how long this money needs to be kept in the account for the bonus to be applied. You are normally allowed to trade with these deposited funds but january be limited on withdrawals for a certain time period.
No-Deposit Bonus
Another common bonus involves a demo account that a broker will offer new customers that already has funds in it for you to trade with that are provided by the broker. If you trade successfully and make a profit, it’s yours to keep. If you lose money with the trade, you’re really not out anything since the broker funded the account for you to use. This is typically a smaller amount of money than other bonuses but if you trade successfully you can turn this into a tidy profit with no risk.
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