Not all of it are bad. Yes you are very right when you said "no one gives things for free without reasons.... " It's also same with the bonus, they have a reason and it's very simple. To attract traders (customers). They give something, to earn back something and with regards to the bonuses, it's the "opportunity to show you their services". If they can earn the opportunity, they will have a chance to earn you as their customers. But in order to do that, they also have to face the risk, and for brokers, the risk is loosing their money. In order for them to lower their risk, they include conditions to the bonuses. For example, I'll give you a bonus of $100 if you open an account but, you have to trade several lots to withdraw them.
If the broker gives high bonuses, its a bad broker?
- Thread starter daytrader-pro
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I always doubt a broker if it give a high bonus, since nothing is free. If a broker can offer you a great benefit, does that mean they can retake it and it means they are scam. I remember a broker offfer 400% bonus and trader gained profit and the broker refused his withdrawal.
i dont think really that bonuses are enough to judge a broker, some may have bizarre offers but it doesnt mean the broker is off, but it can be a sign to double check and make sure before biting every offer out there
on the one hand there's always free cheese in a mousetrap but on the other - well -known companies also give high bonuses but that does not mean that thay are scammers...
yeah exactly, it would be a bit weird if there was a broker that did not offer any incentives or promos right? imagine a broker with no promotions what so ever, will they even be known then?
Kind of good advice
actually I think that if traders were more attentive to client's agreements, bonuses's conditions, risk disclosures and other documentation stuff, they could avoid many problems (i.e. with bonus withdrawal)Giving a high bonus or not giving is not a good way to find a broker is reliable or not!! There are many reputable brokers that give you high bonuses, I can name IronFx and Xm! For knowing that a broker is credible and honest you should try other ways!
yup, basically bonuses are a plus, as long as the broker is credible well known with a good reputation.
just make sure to read entire their trading agreement. make sure your bonus are support your deposit, some bonus are given only to make deposit shrink, when the trading nearly margin call level they cancel the bonus given which result an instant margin call on your account.
yes thats one mistake that a lot of traders tend to make, agreeing to things without reading the terms of service.
No, it doesn't mean they are bad. There are terms and conditions attached with each bonus and each trader should know about them before accepting a bonus. It is up to each trader to decide if they would like to accept the bonus and the terms or prefer to trade free of restrictions.
I don't think the broker that provide high bonus must be bad guy. Bonuses is only a marketing tool used to get newones to trade, and it's common rule in forex trading. Such as I choose hotforex, they provide bonuse to enrich my initial trading funds, so the point should be to find out and distinguish the specific conditions about these bonuse.
Well before judging the forex brokers and their bonuses. Its very much important for all the traders to judge their own trading skills and money management caliber such that they can efficiently manage the trading capital and then start thinking about the utilization of bonus. And most of the times, high bonus may be a trap.
High bonus does not mean a broker is bad, I got a free no deposit bonus of $1000 from FreshForex. I have doubled this bonus in like two months, I tried withdrawing my deposit last week and had the money in my account with around 6 hours. I think it all depends on the broker!
I also trade at FreshForex and, yes, this broker gives lots of bonuses. And it's in the top 10 brokers in Russia in 2015, so it's reliable.
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