Forex trading using bonuses.

Competition among forex dealing centers is growing daily. The fierce battle for clients forces companies to come up with ever-increasing marketing ploys and launch various promotions.

One such PR ploy is offering bonuses for account deposits; at some dealing centers, the bonus percentage reaches 70%, which inevitably raises questions and doubts.

However, to verify the validity of these large bonuses, you should first find out how much forex brokerage firms .

Why such big bonuses?.

Most traders ask: How is it that I deposited $1,000, and they give me a whopping $700?

Let's look at the profit model using the example of a reputable broker who makes money on the spread, not by draining their clients' deposits.

So, you opened a deposit of $1,000; with such a deposit size, few traders trade volumes smaller than 0.5 lots. Therefore, considering the average spread is 2-3 pips, the broker will earn $10-15 from just one trade. Seven trades in a day equals $100, or 10% of the deposit. Ten days of trading, and you've already paid a commission equal to your deposit, and that's with a relatively calm trading schedule. Scalpers manage to pay a spread several times greater than their deposit in a single day.

Considering the broker's earnings, it's understandable that offering such large bonuses is justified. By receiving a bonus, you typically increase your trading volumes, which means you pay even more in spreads.

Probability of deception.

Virtually none. The key is to carefully read the bonus terms and clarify any uncertainties immediately.

Problems typically arise when a trader withdraws funds before the bonus expires or without reaching the required trading volume. In this case, you don't lose your own funds; only the bonus is forfeited.

In most cases, brokers require that traders who receive a bonus reach a certain trading volume. This is due to the brokers' own earnings mechanism, as described above.

To take or not to take?

If you're confident in the broker and don't plan to withdraw funds within 2-3 days, you should definitely take it. The funds you receive can be used to increase your trading volumes, which will increase your profitability, or, conversely, to reduce leverage, which will reduce trading risk.

You can get an idea of ​​the bonus amounts and terms offered by various brokerage companies by reading the article " Forex Bonuses ."