- March 18, 2021
- Posted by: Trading
- Category: News
The bonus is additional help that can make your day, but the absence of a bonus should never break it.
Bonuses are highly coveted among consumers, and you’ve probably used a bonus or two in your life. Forex bonuses are also highly sought-after by traders. Why wouldn’t you enjoy a boost in trading credit when you were planning to trade anyway?
Forex bonuses are an addition to what you’ve decided to invest in a trading account, and it’s best if you continue viewing them as such; an additional bonus. If you’re trading with 100 USD and a broker offers you a 50% bonus, then you’ll get to trade with 150 USD. The 50 USD given by the bonus is usually in trading credit, but it gives you the ability to open more trades or larger ones without additional funds.
Like all the fine things in life, there’s a catch to chasing Forex bonuses. They’re elusive enough to blind you from the other elements you should consider when choosing your broker. Here’s a checklist you should go over before opening a trading account, just to grab that bonus.
Choose a Regulated Broker
Trading with a regulated broker is generally the safer option. It also means that you know their bonuses are regulated and follow the rules. This way, you’re not likely to get caught in a web of a scam or worry about not being able to withdraw your profits.
Don’t Forget About Trading Conditions
A bonus can’t help you if the trading conditions are not in your favor. An extra 50% isn’t enough if the leverage is low and the spreads are too high, and you don’t have risk management tools. Make sure the broker you choose meets all your trading requirements before being engulfed with bonus-excitement.
Read the Fine Print
All bonuses come with a little T&C warning (that’s terms and conditions). Brokers are required to explain all the terms that come along with getting the bonus and under which conditions you’re allowed to use the bonus and withdraw your profits. Make sure you know what you’re in for before you’re in it. Even if the terms are strict, knowing what they are ahead of using the bonus will make the process smoother.
Don’t Just Chase the Bonus High
Hopping from one broker to the next just for the sake of a bonus may lead to more damage than reward in the long run. Every time you join a new broker, you’re losing time on starting over, going through the verification process again, getting used to the platform, getting to know the support team, and readjusting. Focus on finding a broker you trust and use their bonuses when they offer them. This way, you’re building momentum and trust and establishing a long-term trading career that isn’t solely based on bonuses.
Trading is What Matters
Don’t forget that trading should be exciting enough without any bonuses. Your trading plans should be able to tackle a non-bonus environment, and you should build your trading plans upon the amounts you can afford to invest. The bonus is additional help that can make your day, but the absence of a bonus should never break it.