When searching for the best forex broker to register with, you will notice that one thing stands out. Their forex bonuses. And it has in the recent past become one of most popular marketing tools used by different forex brokers in gaining a competitive edge over their competition.
The bonuses come in handy as they help inflate your deposits when trading real cash. And most of these different types of forex bonuses appeal to all classes of forex traders – beginners and elite traders alike.
But how does the Forex bonus work and should you give it preference when looking for the best forex broker? In this guide, we look at the most attractive forex bonuses availed by some of the most reputable brokers. But first, we look at the two primary types of forex bonuses.
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What Are The Different Types of Forex Bonuses Available?
This refers to the cash that the broker deposits into your account as soon as you verify your trading account on their platform. It is also referred to as ‘free bonus without deposit’ as you don’t need to make a deposit to qualify for it. It gives them a chance to take a dip into the real trading environment and test out the different strategies without risking their investments. Both the beginner and experienced traders can also use the bonus funds to gain a deeper understanding of a specific brokerage platform systems. The terms of its accessibility, however, vary from one broker to another. Some disallow the withdrawal of either the bonus or profits made from its use before making your first deposit.
A deposit bonus is the additional sum of money credited to your account as a reward for making your first deposit. Most brokers maintain a laddered deposit bonus scheme aimed at attracting higher initial deposits. The higher your initial deposit is, the higher your initial deposit bonus. This appeals most to experienced traders looking to inflate their account balances and use the bonus funds as margin for their trades. But just like its no-deposit bonus counterpart, the broker maintains a set of terms and conditions regarding the access and withdrawal of this bonus and any profits realized from its use. Some will set the minimum/maximum lot size for bonus trades while others demand that you maintain a given minimum operating balance for a specified period.
How does a Forex bonus work?
You need to dig into your preferred forex broker’s terms and conditions if you wish to understand how the no-deposit or deposit bonuses work. In the case of a non-deposit bonus, there is often no restriction on the number or the amounts of trades you can execute using this balance. However, most brokers will demand that you first make a minimum initial deposit before you can withdraw the free bonus and any gains accumulated from its exploitation.
The deposit bonus is a little different in the treatment of trade volumes, profits, and losses. Trade volume here refers to the number of trades – expressed in lots – which you must execute within a specified period if you hope to access the trading bonus, the profits from its exploitation, or both. For instance, if Broker X awards a 30% bonus on all initial deposits above $1,000 and you deposited this minimum amounts, you would have a trading balance of $1,300.
If the broker then demands that you trade 1 standard lot for every $10 bonus received, you would have to trade about 30 lots ($300 divided by $10) before you can access the bonus and its accumulated profits. And with a standard lot size being 100,000 units of currency, you would have to execute $3 million worth of trades (30 lots*100,000 currency units) to access the deposit. Some brokers will also dictate a specific time frame (often between 30 days and six months) within which this lot size must have been traded. Not to mention that should you make a loss within this period, it is first deducted from your deposit. For instance, if in our case you decided to close the account after incurring a $200 loss but before trading the required lots, your available balance will be $800 ($1000 less $200).
What are the pros and cons of accepting different forex bonuses?
Criteria used to rank best forex bonus providers:
- Type of bonus
- Bonus amounts
- Bonus terms
- Licensing and regulation
- Customer support
- Trading platform and tools
- Consumer experience
Best Forex Bonus brokers for [current_date format=Y]:
1. Pax Forex | Best for U.S Traders -100% bonus
Pax Forex is a highly popular online forex brokerage house and one of the most reputable trading institutions in the United States. It also runs an attractive loyalty deposit bonus program where they match their member’s deposits – 100% - for amounts above $1,200.
Unlike the one-time initial deposit bonus offered by most brands, Pax Forex provides you with a stackable reward where every successive $1,200 deposit attracts an additional bonus. The full bonus amounts are, however, not deposited instantly into your account but are spread and paid in 12 equal monthly installments.
- The broker supports Sharia-compliant (Islamic) trading accounts
- The 100% bonus is highly competitive
- Awards bonus on successive deposits
- The bonus amounts aren't deposited into your account immediately
- Employs relatively strict terms that include the execution of a minimum number of monthly trades
2. FBS | Best no-deposit bonus - $100 bonus
Most forex brokers will only run cash-based bonus programs. FBS on the other hand offers you a comprehensive Trade 100 Bonus package. This features a free no deposit forex bonus of $100 to trade in a real account, a set of educational materials to get you started, and tips on how to make the most use of the free bonus. The $100 is made available to MT5 platform traders upon completion of account registration.
There nonetheless are some restrictions with regards to the use of this bonus as well as profits earned from its execution. For instance, FBS maintains that you can only open a maximum of 5 trade positions at the same time. And before withdrawing any profits realized here, you also must have completed the required 30 trading day’s and traded at least 5 lots.
- Relatively high no-deposit trading bonus
- Maintains a global footprint and is licensed in different financial jurisdictions
- Accepts several payment processing options for deposits and withdrawals
- One may consider their 30-trading-rule and the 5 lots trading requirement needed before making a withdrawal rather punitive
3. XM | Best for international Forex investors -50% +20% deposit bonus
XM has in the past few years emerged as one of the most popular international forex brokers with an solid presence in virtually every continent. And it operates both the no-deposit and deposit forex bonuses.
Every new account holder with XM is treated to a $30 no-deposit bonus upon creating and verifying their trading account. Plus XM is quite flexible when it comes to the withdrawal of both the bonus and its accumulated profits.
Here, you are free to withdraw profits gained from the utilization of the bonus. The international forex broker maintains a two-tier bonus scheme where you are awarded a 50% bonus for deposits of up to $1,000 and an additional 20% for anything else above $1,000. The maximum deposit bonus is, however, capped at $4,500.
- There are no strict limitation on the use and withdrawal of bonus profits
- Caters to both the beginner and low-capital but experienced traders by treating them to the no-deposit and deposit bonuses
- Readily available in over 196 countries across the world
- Doesn’t accept U.S clients
4. Multibank Group | Best for high forex bonus - 100% bonus and $20,00 maximum
Multibank Group operates as MultiBank Forex Exchange in the U.S. It remains one of the most reputable brokers and operates as MEX in all other major forex trade jurisdictions like Europe and Japan. The broker provides individual brokers with three types of bonuses – two on their Maximum trading platform and one on all other trading platforms. The most popular yet is the Imperial bonus of up to $5,000 for deposits of above $50,000.
This bonus is only available to new traders. Plus you will lose it if you initiate a withdrawal within three months of account opening or before trading the required lots. There is also the 100% bonus that is available to new clients and a 20% bonus available on the initial deposit to a new trading account. The two are only available to traders using MultiBank’s Maximum trading platform. The maximum you can get with the double bonus is set at $20,000 while the 20% initial deposit bonus is capped at $5,000.
The number of trading lots required depends on the initial deposit and bonus awarded but ranges from 95 to 440 round trip lots.
- Highly regulated by some of the most reputable financial regulatory agencies across the world
- Trades are executed on an advanced trading platform using sophisticated tools for real-time trade execution
- Strict terms and conditions with regards to the utilization and access to bonus and accumulated profits
5. HotForex | Best for both deposit bonus and trade rebates - 100% deposit bonus
HotForex also makes it to this list of the best forex bonus because of their two-tier and non-discriminative bonus scheme. It features the 100% supercharged bonus and 30% Rescue bonus. The 100% bonus is available to all new and verified accounts where the broker matches your initial deposit amounts. Qualifying for the bonus, however, requires that you make a minimum initial deposit of $250.
The 30% bonus, on the other hand, is made available to successive deposits of over $50 and the maximum you can receive for as rescue bonus is capped at $7,000 in the life of the forex trading account. As the name suggests, rescue bonus is aimed at helping boost your trading account balances, and protect your investments from a negative drawdown. It, therefore, can be lost but cannot be withdrawn.
- Gives you a bonus to protect against negative account balances
- No time limit for the execution of the forex bonus trade volumes
- Premature withdrawals don’t cancel out the bonus, but result in the reduction of the forex bonus by a value equivalent to the withdrawn amount
- One may consider the lifetime limit of $7,000 for the rescue bonus relatively low
6. TemplerFX - $30 no deposit bonus
When dealing with TemplerFX, you can request for a $30 no-deposit bonus for your new and verified real trading account. The bonus can only be received once per trader. You will thus not get the bonus if you are using the documents that had been used to create a current or already closed TemplerFX account.
Plus to withdraw the deposit amounts or the accumulated profits from its utilization, you must have traded five standard lots. The broker is also currently running a promotional loyalty program where you stand to benefit with 100% deposit bonus. Here, you can request for 25%, 50%, 75%, or the full 100% on every deposit above $100.
Note, however, that you cannot withdraw either the earned profits or the bonus without reaching the minimum trading volumes stipulated in the terms of the bonus. This is currently set at 4 lots for every unit currency received. Reverse trading with the forex bonus will also lead to the cancellation of the bonus and forfeiture of profits earned from the reverse trades.
- Caters for both beginner and experienced traders with their no-deposit and 100% deposit bonuses
- You can choose how much you need in deposit bonus and are also free to cancel it anytime
- Maintains a huge bonus limit of $10,000 per trading account
- Limited deposit and withdrawal options
7. AvaTrade | Best for customized bonuses - 20% deposit bonus
AvaTrade maintains a flat rate forex bonus that is currently set at 20% and the maximum you can get as a bonus is capped at $10,000. Note that this bonus is only available for new traders who have verified their accounts and wish to make their first initial deposit of above $1,000.
There, however, is always room for a more customized bonus for high-value investors looking to invest more than $100,000. And you can always negotiate the bonus and terms and conditions with your account manager.
You also cannot withdraw the deposit bonus before executing the required trade volumes that is currently set at 0.1 lot for every $1 received. And this must be executed within 6 months - upon which time any bonus and unclaimed profits expire.
- Treats you to a highly advanced trading platform with some of the most innovative trading tools
- 24/7 customer support
- Customized bonus rates and terms are available for high-value traders
- Not available to U.S clients
- One may consider their average 0.8 pips spreads relatively expensive
8. HYCM | Best for low minimum Deposits - 10% deposit bonus
HYCM will also provide every new member with a welcome bonus of 10% if they make an initial deposit above $100. In an industry where most forex brokers have their qualifying deposits for forex bonus well above $1,000, HYCM can be said to be one of the brokers with the most affordable qualifying minimum deposits.
Note, however, that while there is no limit as to how much you can invest in HYXM, the maximum forex bonus available per trader is capped at $5,000. Profits from the utilization of the bonus amounts can be withdrawn freely.
However, the bonus amounts can only be claimed after you have traded 30 standard lots for every $1,000 received as a bonus within two months of receiving it.
- The low initial deposit amounts required make Avatrade forex accounts most appealing to beginner traders
- Has a rich brokerage history and solid reputation of reliability and unequaled customer support
- Treats traders to responsive trading platforms with trading apps available for both mobile and PC
- You only have 60 days to execute the required trade volumes and this might pressure into over-trading
- Doesn’t accept U.S clients or offer forex bonus to traders within the European Union
Factors to consider before accepting the forex bonus?
i) The flexibility of use and withdrawal
You need to first consider the extent to which you can use the forex bonus. For instance, can it be used to cover a negative balance? And how easy is it to withdraw profits derived from its exploitation? Read the fine print of the broker’s terms and conditions and only accept the bonus if it appeals to your trading style.
ii) Impact on your day to day trading
How does the forex bonus affect such aspects of your trading as the minimum/maximum lot size? How easy is it to withdraw both the deposit and bonus or the accumulated profits? Some brokers will demand that you first top up the account before accessing the no-deposit bonus while others set the minimum lot size for bonus trades. Put these factors into account before accepting a broker’s balance.
iii) The time limit to executing the required trade volumes
While on the broker’s terms and conditions look at the trade volume required to activate the bonus amounts and the profits accumulated from its use. How many lots are you required to execute before freeing the deposit bonus and is there a deadline? Avoid brokers that ask for large trade volumes with tight execution deadlines.
Both the deposit and non-deposit forex bonuses come in handy to beginner and experienced traders. The no-deposit bonus helps beginner traders learn the ropes within the platform of a particular brokerage while the deposit bonus helps an experienced trader boost their margin and inflate their trading balance making it possible to enter into larger trades which in effect translates to higher profits. This makes it necessary to only register with a forex broker whose trading bonuses align with your trading needs and level of experience. But you also need to understand that there is more to attractive bonuses than just huge percentages. You need to look into the terms and conditions about the use of the allocated forex bonus before accepting it.
Glossary of Trading Platforms Terms
The trading platform fee refers to the amount a trader pays to use the platform and access its integrated platform features and tools. It can be a one –time fee paid for the acquisition of the trading platform, a subscription fee paid monthly or annually. Others will charge on a per-trade basis with a specific fee per trade.
Cost per trade is also referred to as the base trade fee and refers to the fee that a broker or trading platform charges you every time you place a trade. Some brokers offer volume discounts and charge a lower cost per trade for voluminous trades.
Margin is the money needed in your account to maintain a trade with leverage.
Social trading is a form of trading that allows for the interaction and exchange of trade ideas, signals and trade settings between the different classes of traders.
Copy trading, also known as mirror trading is a form of online trading that lets traders copy trade settings from one another. In most cases, it is the newbies and part-time traders that copy the positions of pro traders. The copiers -in most cases - are then required to surrender a share of the profits made from copied trades – averaging 20% - with the pro traders.
A Financial instrument ideally refers to the proof of ownership of financial commodities of monetary contracts between two parties. In the money markets, financial instruments refer to such elements as shares, stocks, bonds, Forex and crypto CFDs and other contractual obligations between different parties.
An index is an indicator that tracks and measures the performance of a security such as a stock or bond.
Commodities refer to raw materials used in the production and manufacturing of other products or agricultural products. Some of the most popular commodities traded on the exchange markets include energy and gases like oil, agricultural products like corn and coffee, and precious metals like gold and silver.
An ETF is a fund that can be traded on an exchange. The fund is a basket containing multiple securities such as stocks, bonds or even commodities. ETFs allow you to trade the basket without having to buy each security individually.
CFDs are a form of contractual trading that involves speculating on the performance of a particular trade in the market. CFD’s will basically allow you to speculate on the future value of securities such as stocks, currencies and commodities without owning the underlying securities.
The minimum investment simply refers to the lowest amount of capital injection you can deposit into a brokerage or a trading platform. Different brokers demand varied minimum investment amounts from their clients either when registering or opening trade positions.
A daily trading limit is the lowest and highest amount that a security is allowed to fluctuate, in one trading session, at the exchange where it’s traded. Once a limit is reached, trading for that particular security is suspended until the next trading session. Daily trading limits are imposed by exchanges to protect investors from extreme price volatilities.
A day trader is a term used to describe a trader who is constantly opening trades and closing them within a day. It is a common term used to refer to forex traders who open trade and only hold onto it for a few minutes or hours before disposing and having to leave no open trades at the time the trading day closes.
Will I have immediate access to my deposit after registering?
Yes, the no-deposit or deposit bonuses are available to you as soon as you register and verify the real trading account or make your initial deposit respectively. Most forex brokers, however, don’t have an automated forex bonus processing tools and will require you to ask for it while others present you with deposit prompts on the trading platform.
Do all forex brokers offer forex bonus?
No, not all forex brokers offer forex bonus. It is a non-standard marketing tool. Some brokers may, therefore, consider adopting such other strategies as cash rebates on the executed trades.
How do I know if I am eligible for a forex bonus?
Start by checking if you meet the minimum qualification requirements listed on the forex broker’s website. Ideally, if you are after the no-deposit bonus you will first need to verify your account while deposit bonuses require you to deposit the minimum qualifying amounts.
Does the forex broker exercise control over how I trade the bonus?
Yes, some brokers are strict with how you use the bonus and will even cancel it if you enter into an uncontrolled losing streak. Others will set a minimum or maximum lot size for the forex bonus trades and virtually all brokers have the stipulated trade volumes needed to move the bonus from the credit to the balance side.
Can I transfer the deposit bonus to another account with the same broker?
No, most forex brokers maintain that the bonus must be traded in the account in which it was earned. Initiating a bonus transfer will in most cases lead to its forfeiture given that they often treat internal transfers like cash withdrawals. You risk losing even the earned profits if you attempt to transfer this bonus.
Can I lose the forex bonus earned and how?
Yes, you will lose the forex bonus if you withdraw your deposits without completing the required trading volumes, it can also be lost through unsuccessful trades, or if the broker believes you have broken the forex bonus terms and conditions.
How do I withdraw profits earned from a no-deposit forex bonus account?
The treatment of profits accumulated from the exploitation of the no-deposit bonus varies from one forex broker to another. While some require you to first make a minimum deposit before making a withdrawal, a significant number of brokers allow you to access and withdraw the profits without making an initial deposit.
What happens if I lose the forex bonus allocated to me?
You will not be punished for losing the allocated balance in the course of your trades. Most forex brokers have, however, instituted several risk management practices to limit the extent of this loss. These range from reduced lot sizes to first deducting the lost funds from your trade deposits in the case of deposit bonus. In extreme cases, the broker will cancel the bonus if you go on a losing streak.