What is Forex Deposit Bonus?
What is Forex Deposit Bonus?
Forex Deposit Bonus is a reward cash bonus which is delivered into the trader’s brokerage account after funding with a predetermined amount of money during a promotional period. This time period is defined by the brokers under the promotional guidelines. The bonus offer is not necessarily extended exclusively to new clients. The offer may also be extended to existing clients in order to entice them into adding more money in their account in the hopes of increasing trading activity. The bonus is paid to the new client or an existing client depending on the promotion requirements.
There might be very explicit limitations on how this is paid. Often the bonus won’t be readily available for withdrawal immediately after a deposit is made. The bonus is usually not paid in conjunction with other promotional offers. There can also be exclusions. For example, the offer may not apply to auto trading.
A waiting period for bonus availability is reasonable. A company must be certain that all information provided by the new client, including identification, contact information, and account information is all in order before the bonus is processed. There might be other prerequisites that must be met before the trader is allowed to receive the bonus. One condition may be determined by trading volume. One stipulation may be combined with other requirements such as meeting the volume trading within a 12 month period or whatever time the forex brokerage has determined in the contract.
Forex trading companies are part of a very lucrative industry. Because of its potential for creating incredible amounts of wealth, it is also an extremely competitive commerce. Companies, especially those who are brand new are aggressively seeking more clients. These new brokers offer all sorts of bonuses and prizes in order to attract traders and to increase revenues with existing ones. In addition, those companies who are established must maintain a steady amount of growth derived from new clients. This growth must overcome certain factors associated with loss of business profit such as attrition or lack of activity by current traders.
There are other incentives besides forex deposit bonuses to motivate forex clients to switch brokerage houses. This can be a factor for a prospective client in choosing which broker offers the best incentive. Some brokers offer bonuses for just opening a new account for a non customer; others may offer trading bonuses, contests and prizes. Forex deposit bonus is the most popular offer amongst brokers because it is based on how much money the client deposit in the account rather than just opening a new account with very little money.
It is overwhelming the number of forex trading platforms accessible to the public. In order to choose the right platform, the prospect should take into account other factors in addition but not in exclusion of bonuses.
There are some important variables to consider when looking at a Forex Deposit Bonus offer. Usually, if the client has a loss that takes the entire margin and begins to draw from the margin available from the bonus, the broker may stop the position leaving the client with a zero balance or an overdrawn account. In addition, it is rare to find any company that would allow the bonus to be available right away. Some companies may stipulate that the bonus must be used to provide additional margin for trading.
Receiving any kind of bonus is better than not being offered anything at all. In conclusion, no one should start a forex broker account solely for a bonus. It is best to consider the bonus as an added benefit. Evidently a forex deposit bonus should be factored as a benefit for doing business with a specific broker.
Click here to post comments
Join in and write your own page! It's easy to do. How? Simply click here to return to Forex trading articles - general.