Forex trading using bonuses.

Competition among Forex dealing centers is growing every day; the fierce struggle for clients is forcing companies to come up with more and more new marketing tactics and carry out various promotions.

One of these PR moves is the provision of bonuses when replenishing an account; in some DCs the percentage of incentives reaches 70%, which cannot but raise questions and doubts.

But in order to check the validity of providing large bonuses, you should first find out how much brokerage companies earn on Forex .

Why such big bonuses?

Most traders have a question - How is it that I deposited 1000 dollars, but they give me as much as 700?

Let's look at the earning scheme using the example of an honest broker who makes money on the spread, and not on draining his clients' deposits.

And so, you opened a deposit of $1,000; with such a deposit size, rarely do any traders trade in volumes of less than 0.5 lots.

That is, if we take into account that the average spread size is 2-3 points, then the broker will receive 10-15 dollars from just one transaction. Seven trades per day and that’s 100 dollars or 10% of the deposit. Ten days of trading and you have already paid a commission equal to your deposit, and this is with a relatively calm trading option. Scalpers manage to pay a spread several times greater than their deposit per day. Considering the size of the broker’s earnings, the rationale for providing such large bonuses becomes clear, because when you receive a bonus, you usually increase your trading volumes, which means you pay even more spread.

Possibility of deception.

Practically absent, the main thing is to carefully read the terms of the bonus and immediately clarify all ambiguities.

Typically, problems arise when a trader withdraws funds before the end of the bonus period or without completing the required trading volume.

In this case, you do not lose your own funds, only the bonus is canceled. In most cases, brokers require that the trader who received the bonus perform a certain trading volume, this is due to the peculiarity of the brokers’ earnings, which was described above.

To take or not to take?

If you are confident in the broker and are not going to withdraw funds in 2-3 days, you should definitely take it.

Using the funds received, you can increase the volumes, and with them the profitability of trading, or, conversely, reduce the amount of leverage, and with it the risk of trading. You can get an idea of ​​the size and terms of bonuses provided by various brokerage companies by reading the article “ Forex Bonuses ”.