Broker bonus – reward or punishment?

SotFX bonus

Perhaps many have observed that in the spaces of the foreign exchange market, and in particular, forex, deposit bonuses from brokers are becoming more and more famous. And yes, this is quite understandable, because every person who has heard stories from their acquaintances or famous personalities about the fabulous wealth in the forex market would like to try it at least once. But what if there is no financial opportunity to start trading with large capital? This is where the tempting prospect of taking advantage of a bonus from a broker comes to the rescue, a kind of way to assess the foreign exchange market and test your skills at the start.

You can use the bonus after the start of the trader’s cooperation with a certain brokerage company that trades in the forex market. Welcome and deposit bonuses, for example, can reach up to 100% of the deposited amount. Thus, having a deposit of only $ 100, 200 is already available for trading.

But is this bonus so good, let’s figure it out.

There are certain pluses:

  1. This premium is transparent. The amount of your bonuses depends on the amount of your deposit.
  2. There is an opportunity to trade on these bonuses, and to withdraw profit without hindrance.

But there are also a number of disadvantages:

  1. You can use them only when trading, since bonuses are not subject to withdrawal, or this opportunity appears after a certain trading turnover.
  2. Most often, brokers have a specific term for granting a bonus. If you did not manage to trade this bonus, it is simply reset to zero.

Yes, on the one hand, it looks like an interest-free loan, which, if certain conditions are met, becomes the property of the trader. On the other hand, you cannot simply withdraw it from the account immediately. If the latter was possible, there would be a queue on Forex for receiving funds free of charge.

Brokers, like all traders, have the principles of maximum profitability. Therefore, when providing a bonus to their clients, they have the right to count on the activity of newly attracted traders and on receiving their modest percentage of the transaction.
In any case, regardless of the conditions of the bonus, this is additional funds on the trading account. And there is no need to tell a trader how profitable it is to have a large deposit. Happy trading!