Learn Bonus Trading Best Practices
Now encountering a deposit bonus offer with a forex broker is as easy as never before. You see a lot of flashing ads telling you about 30% Bonus everywhere and in many cases 30% is just a lower limit. Some brokers may even offer a bonus up to 200%. As the largest forex brokers hardly offer any bonuses, people tend to think that bonuses are only offered by the market makers. This is not necessarily too. In fact, this is not true at all. There are some agency model brokers offering you bonuses, as well as there are some market makers that won’t give you a deposit bonus on your forex trading account.
So how to choose the best forex bonus strategy?
Step 1 – Find a Good Broker
This is not easy, but also not too difficult. The first step is choosing a broker, if you don’t know how to do it, you may read our guide. But a rule of thumb here, don’t open an account because of the bonus! Choose a broker that matches your needs and has outstanding trading conditions.
Step 2 – Check for the Bonus Option
Once you have chosen your broker, make sure it offers bonuses BEFORE you make a deposit. Don’t worry if the website doesn’t list any bonuses, you can just shoot an email to their support or ask a client manager.
If you already have a deposited account with a broker, things get a bit more complicated. In general, it is best to mail your account manager and tell that you are offered a bonus by another broker.
Note that you should be able to cash out your bonus. Check the terms! Vital for any forex bonus strategy.
Step 3 – Know Your Style
Forex Deposit Bonus is a certain way of getting compensated for the spread and commission expenses. This is why fx bonus usually depends on the trading volume. If you have been trading before, check how much volume you were making on average per month. Take 80% of that and look for the bonus offer that doesn’t have a larger monthly trading volume.
Task:
You are trading on average 7.5 lots a month.
Your account size is 1,500 USD.
You have 3 Bonus Offers:
Broker 1 – 50% Bonus (750 USD) with 200 lots in 6 months
Broker 2 – 100% Bonus (1,500 USD) with 700 lots in 12 months
Broker 3 – 20% Bonus (300 USD) with 45 lots in 6 months
Which one should you choose?
The correct answer is none of the offers. As all of the offers will fail to meet your expected trading volume, which is 7.5 x 6 x 80% = 36.
While you can of course take the risks and get 20% bonus, you have to understand that it will be a pity to complete only 42 lots and have your bonus gone.
Knowing your trading style helps you in choosing the deposit bonus you can achieve. It is better to have 15% in your pocket than 50% in your dreams. Be attentive towards your forex bonus strategy!
Final Step
Do NOT trade without the bonus. Do NOT let your trading strategy to grow into forex bonus strategy. The truth is, unless you are looking for a very customizable trading service, most of the brokers will offer you something.
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