Every trader wants to find a reliable broker to trade with and is offered the best forex bonuses. However, in forex trading, it’s not easy to identify best forex brokers like that. You have to equip myself with knowledge of forex in general. For that reason, this article will cover all of the aspects relating to forex bonuses in particular as below:
What are the 2 popular ways of cheating bonus?
How many types of forex bonuses are there?
What are the disadvantages of each type of forex bonuses?
Can we really withdraw forex bonuses?
Should we choose brokers that offer good bonuses or low spread?
Which reliable forex brokers offer best forex bonuses?
Some traders don’t pay attention to forex bonuses because they know there will be many disadvantages when using bonuses. But a lot of people like them because they can reduce their trading cost and minimize trading margins. And luckily, you can hack their bonus program and be offered profit. Some popular tricks will be also shared here for you.
1. What are the 2 popular ways of cheating bonus?
The unlucky thing is you can only cheat welcome bonuses. (see number 2) If you want to know, I will share you with two popular methods:
- Several new accounts need to be created by traders to get welcome bonuses. The next step is to hedge 2 accounts together. At this time, you will have an account for winning and one for losing. At a result, you get 50% of winning chance. This cheating way can only be applied to brokers who allow you to withdraw bonus profit without conditions.
- To get welcome bonuses, the cheaters often open a lot of new accounts. Then they user the high leverage to open big positions. They make sure that they will have a winning rate of 50% by hedging them with other accounts. For this type of cheaters, they prefer high leverage brokers.
SEE MORE ABOUT EXNESS LEVERAGE
2. How many types of forex bonuses are there?
In forex world, forex bonuses will be divided into 3 types: Welcome bonuses, Deposit bonuses, and Lot Back bonuses. And each type will be suitable for specific purpose.
Welcome bonuses (or non-deposit bonuses) are considered as the bonuses that brokers offer to new registration of accounts. The new registration can come from new traders or competitor’s clients. They offer a good bonus, from 30 – 50 dollars to attract welcome bonus for first time of registration. So, this type will be impressed by beginners or bonus cheaters.
For beginners, they use this bonus to test the broker’s trading conditions and to try out their trading strategies. For bonus cheaters, they create as many accounts as possible to get these free bonus, then trade and withdraw the profit.
Deposit bonuses are the amount of money you will get when depositing. In terms of percentages of deposit amount, these bonuses will be carefully calculated. The percentage may be 20%, 50%, 100% of the total deposit depending on trading volume. Brokers tend to use this type to encourage traders to deposit more money and reactivated their accounts if they have stopped trading for a long time. Some brokers offer this bonus to first time of depositing.
Lot back bonuses are suitable for the loyalty program. When you finish trading 1 lot/transaction, amount of money will be automatically paid back to your account by brokers. The rebate amount will depend on your trading currencies, account types, and trading time. The professional traders like this type because it’s the most popular programs. Besides, this bonus will minimize transaction cost.
For example, XM’s spread for EUR/USD is 1.4 pip, and they will lot back $3 for each completed trading lot. It means you only pay $11 for each EUR/USD lot instead of $14 of the original spread. MORE INFORMATION ABOUT EXNESS SPREAD
3. What are the disadvantages of each type of forex bonuses?
Welcome bonuses: it's free but usually not good in this field.
- Firstly, $50 is too small. As an investor or a trader, you must look for a bigger amount of money.
- The withdrawal conditions will be not easy for you to begin with.
- Most brokers offering welcome bonuses are new brokers. They are usually not reliable as well.
The withdrawal conditions are very difficult to do.
Sometimes, your forex bonuses will be lost in some cases when withdrawing profit.
Lot back bonuses: It’s only good if you invest in a lot of money. It’s because they only rebate you for each completed trading lot. And it takes a long time to get some profit in trading.
4. Can we really withdraw forex bonuses?
This depends on 2 main withdrawal conditions of bonus:
Some brokers allow you to withdraw bonuses if you completed a certain number of trading lots.
For example: To withdraw $50 bonus, you have to complete at least 10 lots. When you register or deposit in 1 lot, they will deposit bonuses to your account instantly and let you trade. If you win, you only can withdraw that bonus when you have completed up to 10 lots.
Some brokers don't allow you to withdraw bonus, but you can have rights to withdraw the profit.
This is not always the case that brokers allow you to withdraw bonus profit without any conditions. In case they ask for a certain number of completed lots, it is very difficult to withdraw. You even have to pay more than the bonus value to complete those required lots.
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5. What should we choose, good bonuses or low spread?
I think every trader want to have good forex bonuses but it doesn’t seem to be a crucial element to choose a good broker. The most important condition is their credibility.
So, this is my procedure to choose a good bonus:
List down 5 best brokers who are reliable and suitable for you.
Choose the best forex brokers that have good bonus programs. Of course these brokers are very good. So if they have bonuses, it is a lot of better.
Trade and get bonuses.
6. Which reliable forex brokers offer best forex bonuses?
Keep in mind that, here are 4 best forex bonuses based on the process of analysis
Best welcome bonus: 30$ welcome bonus of XM
Best welcome bonus: 50$ welcome bonus of FBS
Best deposit bonus: 100% deposit bonus of XM
Lot Back Bonuses: Rebate 2 - 16$ per lot of Exness