If the broker gives high bonuses, its a bad broker?
- Thread starter daytrader-pro
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I think what he/she means by a bad trader here is some broker with manipulative terms and conditions.
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This is a great question. Just because a Broker offers some type of bonus for deposits, doesn't mean they are bad brokers or that you should approach them with caution. Most of the time, Brokers do this to help them take on newer clientele and expand their reach to a broader and newer audience. But there are limits on withdrawing whatever the initial bonus amount was. So typically they will let you use the bonus as additional Margin/Equity to place larger traders, but you will not be able to withdraw the actual bonus itself...just profits made above the initial bonus.
In some cases, I think that bad brokers use bonuses as a way to distract traders from other unfavorable terms on their site. For example, the broker may offer a $30 deposit bonus aside high costs, hidden charges, and steep withdrawal fees. Initially it seems like you're getting a good deal but the extra costs will quickly exceed the amount of the bonus. On the other hand, I think some of the bigger brokers may offer legit bonuses because they can afford to, but it always makes me suspicious.
I suppose it's okay when a broker can give you % on your deposit.
But I don't trust those who just offer you money.
But I don't trust those who just offer you money.
Well, I did a little bit research and I heard from others that these bonuses are actually just a way of attracting clients and since there are too many conditions basically these bonuses are useless. bur personally I think they can be a opportunity for a good traders.
First, find out how bonuses affect trading, thanks to the bonus you can increase your margin.
Probably it just means that the broker has aggressive marketing strategy and their target audience is newbies, not professional traders. Of course it is better to exercise caution trading with this broker because they don't expect from a newbies meticulous attention to trading conditions.
Not always! usually, the bonuses are strictly shaped and they can't be used easily.
Also, you can easily search for a broker before joining it!
Also, you can easily search for a broker before joining it!
with U on that it really gives an edge and come in handy when dealin with losin trades jus gotta find a broker that doesn hold your money cause throws in some bonuses
I don't really agree with you. I think bonuses are great because they let you trade more. Like in my broker, I can use the bonus to trade but I can't take it out. It just means I have more money to trade with. While bonuses are good, they should not be the primary factor in choosing a broker. It's really important to look into things like if they follow the rules, how good their platform is, if they have helpful customer service, and what people think of them. Being careful and skeptical about big bonuses is a smart move in the tricky world of forex trading.
I remember in 2007-2008 when I first started trading, many brokers gave bonuses ranging from 1$ to 30$. At that time, the bonus really helped me in real trading. With results that can be drawn and of course this is a good thing, not a bad thing. As time goes by, many new brokers appear with certain bonuses, but also with certain conditions. So you cannot immediately withdraw, either bonus or profit. However, now that regulations are becoming more advanced, this bonus is becoming rare.
From a promotional aspect, it is a good thing for them; the higher the leverage they offer, the more potential clients they bring in, and I wouldn't say it is necessarily a bad thing.
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