Forex Bonus is a term which any starting or experienced trader must be familiar with. Offered by brokers, this lucrative bonus can give trader head start by acquiring extra funds. Before delving too deep into Forex, however, we need to understand a bit about Forex itself.
What is Forex?
Forex is a foreign exchange currency trading market, also known as FX. It is the biggest trading market out there with an average daily turnover of $5.3 trillion per day. This market is constantly used by banks, governmental institutions, hedge funds and individual traders worldwide. In terms of initial capital investment, Forex can be highly budget friendly and an aspiring trader can start with a very small amount. Due to its high liquidity, sharp traders can earn great profits. However, without proper planning and risk management, losses can be severe. Success of trading relies upon the choice of broker as well. Brokers provide trading platform and act as the middleman between trader and banks.
What is Forex Bonus?
There are hundreds of brokers out there, in order to gain advantage over each other Brokers entice traders to open accounts with them. This is done by offering bonuses to traders which provide compensation to trader for opening an account with a certain broker. Forex Bonus can be used for trading usually after fulfilling certain broker conditions such as minimum volume of trade, account opening etc.
Types of Forex Bonus: Though every broker offers some sort of bonus with different terms and conditions, generally they can be classified into following broad categories:
i) Forex Instant Bonus , An instant thank you or welcome bonus, this is generally given as soon as a trader makes a deposit. It is usually given as a percentage of the original deposit or as a fixed amount.
ii) Forex No Deposit Bonus, This is a bonus which is given by new brokers usually to attract traders. It does not require any deposit, and only needs an account to be made on the platform.
iii) Forex Pending Bonus, A Forex pending bonus is where things get tricky, this type of bonus generally requires you to achieve particular volume of trade in a given amount of time. This can be risky as novice traders forget about risk management strategies and can incur terrible losses.
Features of Popular Forex Bonus in 2017:
1) XTRADE: A popular bonus option for those without capital, it offers a small no deposit bonus. It is budget friendly and you have the chance to trade without wasting real money. Good to learn the ropes of trading.
2) XM: Just like XTRADE, XM offers a similar no deposit one-time bonus. A definite must for those who want to go for a less expensive broker not requiring any deposits.
3) AvaTrade: Offering bonus on a medium range deposit, the provided bonus increases with the deposit range.
4) HYCM: Another top rated broker, providing Forex bonus in high amounts. Typically allows you to start trading with minor initial capital.