The foreign exchange market offers a lot of complications in terms of money movement and investment. For this reason, brokers have come up with strategies to get people into the world of trading. Apart from advertising, brokers have also begun offering a perk: the free forex bonus. Forex bonuses function as an addition to an investor’s capital and usually take the form of trading bonuses, deposit bonuses, and contest bonuses. From each of these terms, traders can get a bonus when trading, when making a deposit to their trading account, or by joining contests. But why is a forex bonus important? Read below to find out.
A free forex bonus boosts your trading capital. Forex trading capitals are classified into two: small and regular trading capitals. If you have up to $200 to fund your trading account, it is called a small capital. If your deposit is $500 or more, it is considered regular capital. The benefit is you get a deposit bonus depending on the amount of your capital. Often, the deposit bonus is a percentage of your trading capital. For example, you make a deposit of $200 and a trader promised giving a 5% bonus, you get a bonus of $10. Now you have a $210 capital in your account.
A free forex bonus motivates you to trade. There are three motivational aspects of getting a forex bonus: it adds to your capital, it prompts you to trade because of this addition, and it prompts you to trade to clear the bonus. When there is more money in your account, you are likely to try trading than when there is just a little. In terms of clearing the bonus, note that while deposit bonuses are free, they come with certain terms and conditions. That is, some brokers do not allow the bonus to be withdrawn at all. It is only purposely set up for trading.
A free forex bonus prompts you to work with the best broker. All brokers make a claim to offer the best bonus scheme out there. You would want to believe them except that you can only work with one or two depending on your capital. If you can only work with one broker, you will probably seek for someone who you think offers the best bonus plan, and is also good at making trades for you. This means that while forex bonuses are set up to get new traders, the terms associated with the bonus and the perceived competence of a broker, drive their decisions.
Now, one thing you need to remember when coming across a free forex bonus: do not be greedy. There are a lot of brokerage firms and individual brokers who come up with unique bonus systems, so it is easy for you to get lured by their offers. While forex bonuses offer a good startup in your trading experience, you should not ignore the fact that eventually, you need to learn the ways of the trade in order for you to really start racking up the money.