Bonuses are a great way to increase your trading cash. A lot of brokers in the binary options and Forex industries offer bonuses as a way to attract more clients to their sites, and the person that ends up benefitting the most from these is the smart trader that can stay active long enough to cash out their bonus.
What should you look for in a bonus? First, it should be substantial. Why would you settle for a 20 percent bonus when you can get a 100 percent bonus? It’s five times more cash this way. Beware though: some sites will offer the bigger bonuses only to the clients that deposit more. For example, there’s a site out there that offers a 20 percent bonus if you deposit $250, but a 100 percent bonus if you deposit $5,000. Yeah, having $5K doubled is way better than getting an extra $50 into your account, but if you are new or switching to a type of trading that you aren’t used to, there’s a chance that the extra bonus money will not last long. In these instances, the small bonus is better, just because it lessens your risk in the long run. For this reason, it’s important that you don’t spend too much time focusing on bonuses. They are great, but only if you can keep the cash. Otherwise, they are completely worthless and a waste of time at best, and a scam to part you with your money at worst.
That brings up the second point: your bonus should be attainable. Right now, the industry standard across the board is a 30 percent trade through. This means that you must trade 30 times the bonus amount before you are able to keep the bonus. If you get $1,000, that’s $30,000 worth of trading you need to do to keep your money. In this frame of mind, unlocking a bonus can be tough. Experience will help you get to that money, which stresses the importance of education and demo trading. If you are not going to be able to unlock a bonus, they aren’t worth worrying about.
What to Look For?
Some brokers will have timeframes associated with the amount of time you have to get through your bonus unlocking requirements. Some will give you 90 days to unlock a bonus. Others, much less. Again, this makes a difference. If you need to trade $30,000 in a week, that could be really tough. 90 days is a lot easier. If your bonus is too hard to actually get to keep, don’t bother with it.
Some people bounce around from site to site, broker to broker, to max out their bonuses. This is actually a really good idea if you already have an aptitude for trading. By getting an extra $1,000 here, and an extra $2,000 there, bonus hopping can pay off on its own. However, the only way this works is if you are a skilled trader, so developing this talent first needs to be a priority, otherwise, you are just wasting money. Also, this works best when you are able to deposit large enough amounts to make sure that you are getting the maximum bonus that you can get. If you do go this route, keep in mind that some sites don’t have great bonuses. Avoid these sites as they fall into the categories warned against above and are just a waste of time and money.
Forex brokers tend to give bonuses less frequently than binary options brokers, but this doesn’t mean that they do not exist. The fact is, most Forex brokers have been around long enough and have established strong enough reputations that they can survive without having to attract clients this way. One final thing to be aware of is that some brokers offer their bonuses entirely for their own benefit and they are not designed for you to actually keep them. This is a scam, so don’t fall for it.