The process of trading currencies online on the foreign exchange market is becoming increasingly popular. This is known as Forex trading. Currencies are extremely important and the need to exchange currencies in order for them to be used around the world has made Forex trading one of the biggest markets in the world.
The market is even bigger than the stock exchange market, on average the value of trades totals $2,000 billion a day. It is also open 24 hours a day, five days a week which means it is almost constantly active around the world. Forex traders take advantage of temporary fluctuations in the value of different currencies, such as dollars, yen and euros, in order to make a profit. Advancements in technology mean that anyone with access to a bank account, debit card and internet connection can become a Forex trader.
There are also a number of online brokers which can provide assistance for people who are new to the process, although it is important to choose a reliable broker to avoid falling into a scam. Once you have grasped the basics of forex trading, you will be able to make successful trades. One of the essential elements for successful Forex trading is trading bonuses, read on to find out more.
What are Trading Bonuses?
Trading bonuses are beneficial for both brokers and traders. Most good brokers offer new traders the chance to use a demo account for free so they can familiarise themselves with the process, some brokers also offer a bonus as an incentive for new traders to begin using their trading platform.
The most common sign-up bonus offered is a lump sum of money to help people to begin trading. In general, a trading bonus can give the trader an opportunity to make more profits. Most bonuses have a series of strict terms and conditions. As with any type of trading, careful money management is required to ensure that the trader is able to make a substantial profit.
Types of Bonuses Available
There are various different types of Forex trading bonuses available. These are the most commonly found bonuses and how they work:
No Deposit Bonus
A no deposit bonus is usually a type of bonus that is offered a sign-up incentive by brokers for new traders. When traders sign up to use a broker’s platform they don’t have to pay for an account by placing a deposit and they are often able to receive between $25 and $30 just for signing up with an account. Traders are able to withdraw their profits straight away but they must have made a certain number of trades before they can claim the bonus.
Redeemable Bonuses
This is one of the most desirable bonuses available for traders because they are able to claim the profits from trading and a bonus sum as soon as they have hit a trading volume target. This bonus is usually accessed after traders have joined the platform, usually as a one-time only welcome bonus.
Reload Bonuses
This type of bonus is available for traders who have become regular users of a certain platform. They usually have to have deposited a certain amount before a reload bonus will become available but these could be sizeable, up to 50%, and if a trader tops up their account by adding another deposit the bonus could be available immediately.
Technology Bonus
Occasionally, instead of receiving money as a bonus, the broker will offer a technology item such as an iPad or smart watch. A technology bonus is given to help build the relationship between the broker and the trader. These are usually received after a certain volume of trading has been reached.
There are several other types of bonus available for traders, these are just some of those which are the most commonly available for new traders.
How To Find The Best Bonuses
Traders who are interested in taking advantage of some of the bonuses which are available should research into the availability of bonuses with various brokers and platforms. Sometimes the best way to find this information out is by reading customer reviews.
If you read negative reviews, it is obviously best to avoid this broker but you will more than likely find positive reviews which will give you an insight into the bonuses currently available. Of course, reviews shouldn’t be taken completely literally as some of them may be fake or generated for promotional purposes but using them as a general indicator alongside some careful research of your own can be helpful.