Top 3 Trading Bonuses for Forex and CFD Brokers

Whether you’re a new or experienced Forex or CFD (Contract for Difference) trader, the option to utilize trading bonuses is equally attractive. 

When a trader is new to a broker, they are often offered a trading welcome bonus. No deposit trading bonuses are another option for a trader to redeem if they are new to an online Forex or CFD broker. Lastly, a refer-a-friend trading bonus is an extra incentive for existing traders to a brokerage. 

In this article, we will explain how the top 3 trading bonuses work, and how you can use them in your trading activity. 

Trading Welcome Bonus  

If a trader is looking to register with a new online broker, they can be offered a trading welcome bonus upon registration and a first deposit. 

Generally speaking, this trading welcome bonus will be offered as a 100% bonus based on the trader’s first deposit with the broker.  

For example, if the trader deposits $1,000, they can receive an additional $1,000 from the broker, which is normally tied to trading on margin only. This means that the new trader will have $1,000 to use towards trades (their own funds), and the additional $1,000 can be used to trade on margin. 

Naturally, you must be a new client of the broker in order to receive it, and will typically have up to six months to use the trading welcome bonus. Lastly, the trading welcome bonus is generally credited to the trader’s account automatically. 

Advantages of a Trading Welcome Bonus: 

• This kind of offer is a good incentive to join a new online broker. 
• With the option of margin trading with the welcome bonus, you can leverage the value of your existing trade assets, increasing the overall value. 

Disadvantages of a Trading Welcome Bonus: 

• In order to receive the trading welcome bonus, you must be aware of all sign-up and deposit requirements, which may not be possible or viable for all traders. 
• Trading on margin always comes with risks that both new and experienced traders should familiarize themselves with.

No Deposit Trading Bonus 

In addition to the option of a trading welcome bonus, an online broker may also offer the alternative of a no deposit trading bonus. 

Generally speaking, a no deposit bonus is an offer credited to a new trader for making some kind of pre-defined action, outlined naturally by the online broker. This could be upon completing full and verified user registration of a live trading account, for example. 

The no deposit trading bonus is usually an alternative option (rather than a trading welcome bonus) and is typically only offered to new traders of the online broker. The no deposit bonus is generally only offered one time to each new trader account. 

As an example, an online Forex or CFD broker could offer a $100 no deposit trading bonus to a new trader, once they register and verify their live account. Unlike the welcome bonus being on margin only, the no deposit trading bonus is typically fully tradeable on the markets. 

Advantages of a No Deposit Trading Bonus: 

• The trader has no initial commitment to deposit funds in order to receive the no deposit bonus offer. 
• The trader can trade on live markets and use innovative trading tools with essentially ‘free’ money. 
• Any profits made with the no deposit bonus money can be withdrawn. 

Disadvantages of a No Deposit Trading Bonus: 

• The no deposit bonus is generally a small amount, so you are limited to smaller trades at first. 
• Your maximum withdrawals will commonly be quite low. 
• Typically, if you accept the no deposit bonus at a new broker, you will not be able to collect the trading welcome bonus – which is usually a higher sum of bonus money (than the no deposit offer). 

Refer-a-Friend Trading Bonus 

The refer-a-friend trading bonus is becoming more common and popular amongst online trading brokers. 

Why? Well, it is a great incentive for the trader, while it is also an effective way for the online broker to onboard new traders and hence offer one of the above bonuses; it is a bonus which serves all parties involved. 

How it works is in the name – a trader refers a friend to register at the online brokerage where they are trading, and if that friend completes registration and becomes fully verified, the referring trader receives a bonus of some sort. 

Typically, online brokers offer the incentive of free stocks to the referring trader who registers their friend at the online broker. Even better, certain online brokers offer actual cash as the refer-a-friend trading bonus (to the referring trader). 

As an example, an online broker will offer a cash incentive, say $750, for every friend an existing trader refers to the broker. This cash incentive can be used in whichever way the trader desires – on further trades, or to withdraw directly.  

Usually, there is a maximum number of friends which can be referred per trader/account; however, exceptions may also be made for special cases. 

Advantages of a Refer-a-Friend Trading Bonus: 

• The existing trader has a great incentive to help both their friends and build loyalty with their online broker. 

Disadvantages of a Refer-a-Friend Trading Bonus: 

• If you do not trust the online broker, you can create conflict by referring friends there (always check the TrustPilot score of a broker beforehand). 

Top 3 Trading Bonuses: Conclusion 

While online trading is most certainly an exciting hobby or even, profession, to act on, it can also come with potential rewards that make certain brokers more attractive than others. 

As a trader, you have the power of choice, and before choosing an online Forex or CFD broker, you should always review what online trading bonuses are made available to you. 

There is both a huge and competitive market in the industry of online trading, so the more educated and informed you become, the better your decisions will be. 

This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.