Given the tremendous size of the FX market, in combination with its potential for profit among retail traders, the supporting industry is booming. New Forex brokers are opening shop daily, and many of them spend the majority of their time and resources trying to lure in new traders.
These brokers offer the falsehood of immediate and great wealth to the beginner trader, and they hire entire marketing and copywriting teams to work on this illusion. The marketing teams of the brokers are professionals who know how to speak to traders’ emotions and get them excited about the idea of making millions in no time. What ends up happening 90% of the time, is that the trader loses their investment and closing their Forex trading account, while the broker profits from the trader’s losses.
So how do brokers get away with this and more importantly, how can a trader avoid these traps?
The Forex market is absolutely overflowing with brokers, each offering their own FX bonus to get traders to open an account with them. There are brokers such as Avafx who offer traders a large Forex bonus on their initial deposit. Avafx for example, offers new traders up to a $1,200 deposit bonus. Obviously, not everyone who opens an account with AvaFX receives $1200 free Forex bonus, but those that deposit $10,000 do. If you deposit a smaller amount, you can also get substantial bonuses depending on your initial deposit.
Another example of a Forex bonus type is a a cash bonus with no deposit needed, referred to an a No Deposit Bonus. An example would be 10Pips, who offer traders a $20 bonus even if they do not make a deposit. 10Pips does not stop there and they offer up to 30% on your initial deposit.
The above are just two examples of bonuses offered by two very impressive brokers. However, as we already said, the market has hundreds if not thousands of brokers, most of them not as reliable as Avafx or 10Pips. What a trader needs to do before opening an account is something very simple.
When one decides to trade Forex, they need to make sure to leave their emotions at the door. This is of course true for the trading itself, but just as important, this is true for the selection of an FX broker. A trader should sit down and decide what they need in a broker, and then go ahead and seek that out. A trader must not be distracted by the flashy banners and promises being made by other brokers. If it is a nice bonus to get started with some capital a trader is after, then they should go and look for a reliable broker who provides that.
Most importantly though, the broker bonus offered by most is a nice addition, but the core issues and the ones that really matter are the reliability, usability, and dependability of the broker itself. How is their customer support? How is their trading platform? Do they offer all the trading features I need? Do they have competitive spreads? Do they charge commissions? These are some of the many questions a trader should ask themselves before choosing a Forex broker. The new trader should make sure to read Forex broker reviews to help them answer the question. The free Forex bonus offered by the various brokers should help strengthen your decision and should not be the factor upon which you make it.
On the flip side, do not misunderstand; bonuses can be a great thing. It is important to have sufficient capital when trading the FX market and if you can receive a 30% bonus on your deposit for example; this is not something that should be taken lightly.
To conclude, I recently conducted a survey among many Forex traders in which I asked “What is the main kind of Forex promotion that would motivate you to open an account with a Forex broker?” Almost all the answers I received with the exception of one or two said that the bonus offered by the broker is secondary to the broker itself and its infrastructure. This is the way it should be, and entering the Forex market using one’s brain as opposed to their emotion will enable them to make a more educated and responsible decision when choosing a Forex broker.
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FX BONUSES & PROMOTIONS
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Live Rates
| Symbol | Change | High | Low |
|---|
| EUR/USD | 0.0012 | 1.3283 | 1.3203 |
|---|---|---|---|
| AUD/USD | 0.0038 | 1.0777 | 1.0684 |
| EUR/GBP | 0.0004 | 0.8401 | 0.8373 |
| EUR/JPY | -0.01 | 103.17 | 102.48 |
| GBP/USD | 0.0005 | 1.5826 | 1.5761 |
| USD/CAD | -0.0002 | 1.0015 | 0.9975 |
| USD/CHF | -0.0015 | 0.9159 | 0.9106 |
| USD/JPY | -0.05 | 77.77 | 77.57 |
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