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Once you have started being involved in Forex trading, you will come across a bunch of Forex deposit bonus offers from brokers of any quality.
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The bonus is nobody else but a way to recompense the expense a trader incurs when trading with a broker.
As you already know, most of the brokers either make money on the spreads or on commissions and the bonus constitutes a certain gift from the broker, once you have provided broker with a definite income.
How does it work?
In order to get a Forex deposit bonus you, of course, have to make a deposit.
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In many cases, you will be offered massive bonuses that you cannot withdraw — do not go for such deals unless you actually know what you are doing.
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This is one among the conditions that is often placed to confine the bonuses from being withdrawn with no trouble.
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To calculate your trading volume, you should split your bonus amount 200 USD by the lot per bonus amount 8 USD per 1 lotand you will get 25 lots.
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How is forex trading deposit bonus useful for the broker?
Well, as you already implicit, once you have been given a bonus, you will be fairly motivated to trade often.
In many cases the bonus will come with a convinced period of achievement, so you would be limited to complete 25 lots within 90, 120 and 180 or any other amount of days, depending on the bonus offer.
In fact, the brokers also have to incur lots of operating cost and they are of course not complete by the 0 pips spreads, so it may surely occur that while you are receiving 200 USD back out of 500 USD spreads that you paid, a broker may not make any profit.
However, many brokers still offer the bonuses just to get a higher amount of clients.
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Total 25 comments.