If you're in the market for a new Forex broker, you've probably noticed that there are dozens of Foerx bonuses and rebates being offered by brokers looking to get your business. But are these types of promotions truly worthwhile? Let's start by examining what each one means.
Deposit bonus – These are usually a draw for new traders who are making their first deposit with a broker and aren't quite sure what to expect. With a deposit bonus, Forex brokers usually give traders a certain percentage or a fixed amount back into their account upon the initial deposit. It's always a good idea to consider the broker's ratings and regulations before registering because of a deposit bonus – there are many unregulated Forex brokers out there that offer deposit bonuses simply to swindle traders out of money. Ava FX, for example, a top-rated Forex broker, is currently offering excellent deposit bonuses.
No deposit bonus – This type of Forex bonus is typically offered by small or new Forex brokers looking to attract traders. No deposit bonuses mean that the broker will deposit the advertised sum into the trader's live trading account even if no deposit has been made.
Trading bonuses – Offered to entice traders who plan to make repeated deposits, trading bonuses are Forex bonuses offered to traders who reach certain trade volumes or deposit levels.
Forex trading contests – Many Forex brokers offer prizes to traders who reach the highest percentage of profit in a given time period (often over the course of a month). You can get a full explanation of Forex contests here.
Forex rebates – As its name suggests, Forex rebates are basically the opportunity to get cash back for every trade placed via your trading platform. Forex rebates can be offered by the broker itself, but they're also often offered by introducing brokers (IBs) or other marketing companies that wish to serve as an intermediary between you and your Forex broker, enabling them to get a commission on your trades, of which they're willing to share some with you.
There's no question that someone looking to make a quick buck in the Forex market may be enticed by Forex bonuses or rebates. But traders who are looking to build a Forex trading career that will expand over time should look first and foremost for a Forex broker with the best trading conditions for the long term rather than those that offer limited bonuses or performance-based incentives. Then again, if you can find a Forex broker with tight spreads that also offers decent Forex bonuses, maybe you really can have the best of both worlds!