Forex brokers try to attract new users in all ways possible. Some of them try to compete by providing the best trading conditions, others decrease fees or improve their order execution speed. However, it seems that the majority of brokers also offer some additional bonuses to their clients such as various welcome bonuses. Each broker has its own set of requirements and conditions for such bonuses, so we’re going to explain how to choose the right one for you.
How welcome bonuses work
Many Forex brokers offer certain benefits for new users. These benefits are called welcome bonuses, and their primary function is to help you get familiar with the platform and start trading without actually investing anything. You earn your first profits, get accustomed with the conditions and fees, and start making real deposits — and the broker receives a new active client. However, the actual amount you receive may vary greatly from one broker to another.
Welcome bonus types
There are several types of welcome bonuses. Some of them are granted just for signing up, you don’t even have to verify your account. Such benefits are also called no deposit bonuses. While it is pretty easy to receive them, they tend to be relatively small. Much larger bonuses are offered by brokers that require some additional tasks to be completed before you can claim them. Every broker has its own set of requirements and conditions, so you should be very careful.
The most common requirement to receive your Forex bonus is to verify your account. This way, you show the broker that you’re a real person actually interested in trading and not a robot. Another task you may be asked to complete is depositing a small sum of your own money. Sometimes brokers do not set a specific deposit sum — instead, they may offer to multiply anything you invest. While that’s not a no deposit bonus as such, this type of welcome bonus can be really beneficial.
Sooner or later, you start thinking about withdrawing your funds. Some Forex brokers won’t allow you to withdraw your welcome bonus at all, others require that you trade several lots first. There are also brokers who allow you to withdraw only your profits, not the bonus. XM is a great example here: this reputable broker offers you a $30 bonus just for signing up. But you can’t take it: you can use it only for trading.