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Brokers => Brokers => Topic started by: fx.mstr on July 03, 2014, 09:56:04 PM

Title: True and fake bonuses offered by brokers
Post by: fx.mstr on July 03, 2014, 09:56:04 PM
I have came across some of the bonus offers from brokers and I must say that most of them are FAKE.

There are very-very few brokers that offer real trading bonus (or maybe I have not found them) and most of them try to fool the traders with their so called "trading bonus" which is not more than only a rebate if you trade a tremendous amount of lots.

In my point of view real trading bonus is that what you can use for trading, make higher gains with it and lose it if your position goes against you. Otherwise it is a complete financial suicide to open a larger lot size just because you have the "bonus" on your account.
The sad part of the story is that most of the brokers tried to convince me to take their bonus and I can open a larger lot size and make more money but when I have asked what happens when my floating loss reaches the level of my original deposit they said the bonus will be withdrawn, which means that they pull the floor out of my feet when I am in trouble.

They set impossible targets to withdraw or even to be able to use the bonus amount for trading, such as trade 1 lot for each $1-2. If you get a $1000 bonus you have to trade at least 500-1000 lots to be able to use it. If you try to do so it is 99.9% sure you will fail.

This practice should be illegal!

What do you guys think about that?

Do you use any of the available bonus schemes of any brokers?
Have you found any honest one that offers any kind of trading bonus?
Title: Re: True and fake bonuses offered by brokers
Post by: ultracat on July 04, 2014, 01:27:20 AM
It's not so much fake as it's misunderstood.  It's not free money...it's a "bonus" amount of leverage.  If I ever use bonuses, that's how I use them:  I reduce my risk capital and run roughly normal  risk using the bonus money along with my capital.
Title: Re: True and fake bonuses offered by brokers
Post by: forexfish on July 04, 2014, 02:06:27 AM

It is simply offering higher leverage, if a broker is offering 1:500 max leverage and also offering 100% bonus so you simply assume broker is offering 1:1000 leverage. Bonus element increase your capital size ( non withdrawable, can withdraw if lot size conditions are met ).

Lot size conditions are very tight normally as each $1 of bonus need to trade 1 RT lot in most of the cases so you simply assume you cannot withdraw.
Title: Re: True and fake bonuses offered by brokers
Post by: geektrader on July 04, 2014, 03:51:32 AM
I have came across some of the bonus offers from brokers and I must say that most of them are FAKE.

There are very-very few brokers that offer real trading bonus (or maybe I have not found them) and most of them try to fool the traders with their so called "trading bonus" which is not more than only a rebate if you trade a tremendous amount of lots.

In my point of view real trading bonus is that what you can use for trading, make higher gains with it and lose it if your position goes against you. Otherwise it is a complete financial suicide to open a larger lot size just because you have the "bonus" on your account.
The sad part of the story is that most of the brokers tried to convince me to take their bonus and I can open a larger lot size and make more money but when I have asked what happens when my floating loss reaches the level of my original deposit they said the bonus will be withdrawn, which means that they pull the floor out of my feet when I am in trouble.

They set impossible targets to withdraw or even to be able to use the bonus amount for trading, such as trade 1 lot for each $1-2. If you get a $1000 bonus you have to trade at least 500-1000 lots to be able to use it. If you try to do so it is 99.9% sure you will fail.

This practice should be illegal!

What do you guys think about that?

Do you use any of the available bonus schemes of any brokers?
Have you found any honest one that offers any kind of trading bonus?

Well, thatīs exactly the point, they WANT you to lose all your money. Brokers that offer such bonuses ARE market makers, even if they claim they are not. And such brokers DO make their money if their clients lose and thatīs exactly the reason they offer such bonuses. Go with a serious ECN broker without deposit bonuses, they are ALWAYS a red flag to me and a way to identify honest from un-honest brokers.
Title: Re: True and fake bonuses offered by brokers
Post by: fxview on July 05, 2014, 03:47:18 PM
These bonuses aren't fake they just come with terms and conditions which make them much less attractive. It's really the job of the trader to find out the Terms and Conditions of any bonuses they receive when signing up to a brokerage, at the end of the day brokerages are selling a product and are going to make things sound particularly rose tinted.

Certain types of bonuses are banned in certain regulatory jurisdictions. For instance in Europe regulated firms can't offer bonuses which prevent traders from withdrawing their initial deposit.

Choosing a brokerage on the basis of what bonus they offer is probably a bad idea. Some of the best brokerages tend not to offer any deposit bonuses (they don't have too) and you should pick a brokerage you can have a long term relationship with, not one who is going to offer you a flashy freebie.
Title: Re: True and fake bonuses offered by brokers
Post by: FredB on July 06, 2014, 02:26:35 PM
No broker (or business for that matter) is going to offer you anything for free, its a simple fact of life. The deposit bonuses are tools to lure you in, and are akin to to treating forex trading like a casino. If you choose to trade with a $5 deposit broker with a bonus you are most likely trading with a market maker as its the only way they can make money from you - your trading volume is definitely not going to justify any profits for them!
Title: Re: True and fake bonuses offered by brokers
Post by: geektrader on July 07, 2014, 06:49:08 AM
No broker (or business for that matter) is going to offer you anything for free, its a simple fact of life. The deposit bonuses are tools to lure you in, and are akin to to treating forex trading like a casino. If you choose to trade with a $5 deposit broker with a bonus you are most likely trading with a market maker as its the only way they can make money from you - your trading volume is definitely not going to justify any profits for them!

Thatīs exactly how it is, hence serious brokers are not offering you any bonuses because they donīt trade against you and just make their profits from commissions, hence canīt justify fancy bonuses. For me personally ANY broker that offers a bonus I stay away from exactly for the reason that you know they will trade against you to make this bonus back. An exception is Armada Markets who give some small bonuses here and there, for deposits they donīt exceed 15 Euro though as itīs limited to 10% on a max of 135 Euro. Thatīs a realistic amount they can really make back through commissions if you trade profitable. But all those 50%+ bonus on ANY deposit amount brokers you simply have to forget, they are ALL market makers and you WON`T win with them in the long run, rest assured.
Title: Re: True and fake bonuses offered by brokers
Post by: jemook on July 07, 2014, 11:34:24 AM
Geektrader hit the nail on the head.

I'm interested to hear what introduction promotion you guys would like to see from a broker to help get you over the line with testing them out? My question only applies to a broker that doesn't profit from client losses.

Cheers,
Jeremy
Title: Re: True and fake bonuses offered by brokers
Post by: Tempestshade on July 07, 2014, 11:52:14 AM
I personally don't mind bonuses in some instances. Some brokers allow bonuses to be used as extra margin - obviously only those who trade against you. I could not see a reputable broker taking this risk. But it does help in some instances. You must except that you will never withdraw this however.

Jeremy - I think more realistic introduction promotions could be along the lines of the first 10-50 trades are free, or perhaps first 1 lot of trades are commission free. Making the trade free from commission/broker spread-mark-up (if applicable). This would allow systems to test out your feed without having to pay for the first few trades. Doesn't disadvantage the broker much and gives the trader time to test you out. You could also market this as allowing traders to practice with a live account for free, as from their own P/L.

If I think of anymore I will post them.

Cheers,
David
Title: Re: True and fake bonuses offered by brokers
Post by: tcc97 on July 07, 2014, 12:31:11 PM
interesting topic!

i agree with most here that state that most reputable brokers would not even offer bonus to start with. 

however for whatever reason if a trader decide to use a broker with bonuses,  then one way to think about it is per forexfish point (extra leverage) n use it the way ultra cat suggest (open the account with intended amount less the bonus so u are risking less than the original capital u had in mind).

folks, these are a few of the useful pieces of advice if one intend to stay long term in the fx mkt. n they can only come fr ppl who had been thru a lot in the mkt! 

+1 to the 2 of u. 
Title: Re: True and fake bonuses offered by brokers
Post by: tcc97 on July 07, 2014, 12:36:18 PM
totally agree with David here. generally if u make it as little friction as possible for traders to open an acc ie little to no cost to send funds n 10 - 20 commission free trades, it should help many traders who are contemplating between broker a or broker g, to decide to go with broker g!

p/s: broker g = global prime.


I personally don't mind bonuses in some instances. Some brokers allow bonuses to be used as extra margin - obviously only those who trade against you. I could not see a reputable broker taking this risk. But it does help in some instances. You must except that you will never withdraw this however.

Jeremy - I think more realistic introduction promotions could be along the lines of the first 10-50 trades are free, or perhaps first 1 lot of trades are commission free. Making the trade free from commission/broker spread-mark-up (if applicable). This would allow systems to test out your feed without having to pay for the first few trades. Doesn't disadvantage the broker much and gives the trader time to test you out. You could also market this as allowing traders to practice with a live account for free, as from their own P/L.

If I think of anymore I will post them.

Cheers,
David
Title: Re: True and fake bonuses offered by brokers
Post by: Istherehope on July 07, 2014, 12:54:08 PM
I would like to see free wire transfers (maybe setting a bank account in an European bank?) and electronic withdraws using ewallets.
The cost of transfers to and from Australia easily adds to the total cost of trading if your account is not big
Title: Re: True and fake bonuses offered by brokers
Post by: Tempestshade on July 07, 2014, 01:11:28 PM
I would like to see free wire transfers (maybe setting a bank account in an European bank?) and electronic withdraws using ewallets.
The cost of transfers to and from Australia easily adds to the total cost of trading if your account is not big

I don't think this is very plausible for exactly the reason you mentioned - wire transfers easily add up. My experience has been in the ballpark of say $15-$40 for each transfer. I would expect that a broker makes - in pure profit - perhaps only $2-$4 (if that) per lot traded. This means that you would have to trade 4-20 lots depending on their profits to make up for the transfer. Definitely not worth it for a smaller account where this could take several months.
Title: Re: True and fake bonuses offered by brokers
Post by: Istherehope on July 07, 2014, 04:33:26 PM
I would like to see free wire transfers (maybe setting a bank account in an European bank?) and electronic withdraws using ewallets.
The cost of transfers to and from Australia easily adds to the total cost of trading if your account is not big

I don't think this is very plausible for exactly the reason you mentioned - wire transfers easily add up. My experience has been in the ballpark of say $15-$40 for each transfer. I would expect that a broker makes - in pure profit - perhaps only $2-$4 (if that) per lot traded. This means that you would have to trade 4-20 lots depending on their profits to make up for the transfer. Definitely not worth it for a smaller account where this could take several months.

A SEPA wire transfer costs 50 cents. That is why a bank account with a reputable European bank would be a good idea for costumers of Global Prime and for the broker itself if it wants a share of that market
Title: Re: True and fake bonuses offered by brokers
Post by: Tempestshade on July 07, 2014, 04:52:28 PM
I would like to see free wire transfers (maybe setting a bank account in an European bank?) and electronic withdraws using ewallets.
The cost of transfers to and from Australia easily adds to the total cost of trading if your account is not big

I don't think this is very plausible for exactly the reason you mentioned - wire transfers easily add up. My experience has been in the ballpark of say $15-$40 for each transfer. I would expect that a broker makes - in pure profit - perhaps only $2-$4 (if that) per lot traded. This means that you would have to trade 4-20 lots depending on their profits to make up for the transfer. Definitely not worth it for a smaller account where this could take several months.

A SEPA wire transfer costs 50 cents. That is why a bank account with a reputable European bank would be a good idea for costumers of Global Prime and for the broker itself if it wants a share of that market

Interesting - I have never seen such wire transfers. My canadian bank charges me much more for transfers. I will have to inquire.
Title: Re: True and fake bonuses offered by brokers
Post by: T_Hair_DFX on July 18, 2014, 04:09:34 PM
I just saw this thread and thought I would give my 2 cents for what its worth.

Brokers use bonuses for various reasons, the main two being to get more live funded accounts, and increase trading volumes.  At the end of the day brokers are not in the business of losing money, and the terms and conditions set forth reflect that.  There are many factors that go into setting out the terms and conditions.  For example, the trading bonus that Direct FX put together for July is available to all clients, regardless of if they have been referred by an Introducing Broker.  Due to this, we had to factor in the potential costs of paying out IBs on the trading volumes, thus resulting in a higher minimum requirement. 

We do however set these trading requirements at our break even point in worst case scenario.  Our thought behind that is we are seeking long term clients who are going to always want to trade with us, and providing trades a fair bonus is a good place to begin. 

In my opinion, all bonuses should only be paid once the trader has achieved the goals.  Giving it to the client in the beginning, then taking it away if they do not meet the requirements is misleading, and a very large hassle.

Hope that helps gives another perspective, outside of Jeremy's, from another brokers point of view.

All the best,

Trent
Title: Re: True and fake bonuses offered by brokers
Post by: MaximB13 on July 19, 2014, 12:01:48 AM
When I am making a deposite, I usually message someone from the support or financial team, telling that I don't want their bonuses.
I don't believe any of those "bonus programs"  ;)
Title: Re: True and fake bonuses offered by brokers
Post by: 999cjb on July 19, 2014, 12:51:58 PM
It's not so much fake as it's misunderstood.  It's not free money...it's a "bonus" amount of leverage.  If I ever use bonuses, that's how I use them:  I reduce my risk capital and run roughly normal  risk using the bonus money along with my capital.

Totally agree. I try to decline bonus offerings where possible but sometimes they are automatically added.

If your account has a bonus this will usually show up as a "Credit" in the Balance line of MT4, increasing your Equity and Free margin. I am running one account with a negative balance. The only thing keeping its head above water is the bonus which is avoiding the margin call.

But as long as you have read the "small print" from the broker about the bonus you can run accounts with zero or negative capital at whatever risk you think is prudent. So you can effectively make money from nothing and use your capital elsewhere  :)
Title: Re: True and fake bonuses offered by brokers
Post by: hashim on November 23, 2014, 02:40:30 PM
there's many case where traders are feel been fractured with their bonus given. I also having a bad experience with 'discount' brokers who offer deposit bonus. some brokers stated the bonus are available for withdrawn but better to check what their requirement to bonus become withdrawable, it's nearly imposible. some give a condition where the account should trade
"standard lot" x bonus given = x lot traded, until bonus are able to withdrawn.
other case is, when the bonus are canceled when the account hit the margin call level, which resulted an instant wipe out of my account equity. better check their bonus rule before claim your bonus.
Title: Re: True and fake bonuses offered by brokers
Post by: fx.mstr on November 27, 2014, 01:23:26 PM
there's many case where traders are feel been fractured with their bonus given. I also having a bad experience with 'discount' brokers who offer deposit bonus. some brokers stated the bonus are available for withdrawn but better to check what their requirement to bonus become withdrawable, it's nearly imposible. some give a condition where the account should trade
"standard lot" x bonus given = x lot traded, until bonus are able to withdrawn.
other case is, when the bonus are canceled when the account hit the margin call level, which resulted an instant wipe out of my account equity. better check their bonus rule before claim your bonus.

It is always a must to check the terms and conditions of the bonus promotions!

Even if all brokers that offer any bonuses are market makers you still can benefit of these offerings if you know how to take advantage of them.
As we have mentioned it earlier here trading high lot sizes only in order to withdraw the bonus amount is a financial suicide. These brokers know that and offer such things in order to feed the weak traders' greed then take their money.
But, if you trade high lot sizes anyway, and can benefit of the offering, there is nothing wrong with taking it.

As for myself, I am not a fan of these withdrawable bonuses. I like the non-withdrawable trading bonuses instead that can be lost. It means that you have more money on your account to trade with and you can either reduce your risk by keeping the original lot sizes or you can increase the lot size proportionally and trading higher lot sizes by keeping the original risk.
Title: Re: True and fake bonuses offered by brokers
Post by: rodneyp on January 13, 2015, 08:06:30 AM
I have seen a few brokers offer commission free trading lately pretty much resembling a bonus. My initial thought was that this was legit but then I realised that it probably is not as they have a cost of hedging if they are A book. This all leads me to believe that they are B book brokers charging commissions.

Any thoughts on this?
Title: Re: True and fake bonuses offered by brokers
Post by: bruce_knee on October 28, 2015, 03:18:29 PM
Brokers and their bonuses remind me of gambling websites - we give you free money so you can deposit and start playing.. or something. I don't fall for any bonuses to make me trade. I count on my knowledge and skills for motivation
Title: Re: True and fake bonuses offered by brokers
Post by: uzakon on February 06, 2016, 08:44:47 PM
Quote from: Phil Emery link=msg=351661 date=1453746287

Sorry mate, but if this is true useful bonus then I be happier not having it. I believe quality or true bonuses are what we can actually use in margin levels, it is useless to get bonuses which are there as show piece, as that do nothing good for us. I get 50% bonus from OctaFX broker at the moment, it is trade able and that’s what I consider as real good bonus, it is possible to get this bonus even with the lowest of investment which is just 5 dollars.

How can you trade on $5? With bonus it will $7.5 right. What about stop out level and leverage at OctaFx? It looks a bit weird.
Title: Re: True and fake bonuses offered by brokers
Post by: odysseus11 on April 25, 2016, 01:04:54 PM
Be careful with bonuses.

I have never used a broker that offered one in the last few years, but from everything I have read the brokers who offer bonuses are the ones who B-Book trades and manipulate executions. No matter what they may claim. They offer bonuses because they *know* they will getting the money ALL back (in fact, from what I have read it is next to impossible to take any out once you deposit).

Title: Re: True and fake bonuses offered by brokers
Post by: ichamp on May 23, 2016, 11:34:05 AM
I better suggest reading the terms and conditions of the bonuses properly before availing them as the bonuses might comes with certain terms, for those who does not wish to avail bonus can always have the option to trade without availing bonuses.
Title: Re: True and fake bonuses offered by brokers
Post by: MatthiasHuber on July 07, 2016, 12:56:01 PM
$1,000 no deposit bonus sounds ridiculous. I will give it a go however and post my feedback.
Title: Re: True and fake bonuses offered by brokers
Post by: Ron on July 07, 2016, 04:06:34 PM
you can only trade 0.2 lots and for 10 days
Title: Re: True and fake bonuses offered by brokers
Post by: growing_mark on July 10, 2016, 04:12:06 PM
each broker has their own rules and you have to learn know well about it before give a try.
for example, some broker offer 100% your deposit but the rule to withdraw is very strict
as i know, tickmill has a welcome account which provide $30 free after registration as well as providing  respective documents.
you might trade wih unlimited time and might withdraw profit or transfer it to normal live account when you've trade 5 lots and earn the profit of at least $30 and maximum $100. For me, it's achievable condition!
Title: Re: True and fake bonuses offered by brokers
Post by: drunkfx on July 21, 2016, 11:42:03 AM
Quote from: MatthiasHuber link=msg=356211 date=1467892561

$1,000 no deposit bonus sounds ridiculous. I will give it a go however and post my feedback.


Which solid financial firm will hand out 1000$ bonuses to traders? Clearly it is a trap I highly recommend to stay away from it. Instead I can suggest you 100% credit bonus from Hotforex (tested it myself trading news) which is not freebie or gift but at the same time very helpful for some trading styles as it increases margin.
Here is the link https://www.hotforex.com/hf/en/deposit-withdraw/100-flexible-bonus.html
Title: Re: True and fake bonuses offered by brokers
Post by: ichamp on October 12, 2016, 12:10:13 PM
I was looking at lmfx free phone validation bonus and i think its an easy way to grab free $20 by simply validating your phone number and trading a minimum 3 lots.

https://www.lmfx.com/en/landing-pages/lmfx-open-live-account.html
Title: Re: True and fake bonuses offered by brokers
Post by: Eliza Abrams on December 09, 2016, 11:26:29 AM
Soon bonuses will be banned in many parts of Europe, at least. Both the British FCA and the Cypriot CySEC financial regulators have issued statements that they are banning trading bonuses and newbie account bonuses. (https://smnweekly.com/2016/12/06/uks-fca-bans-trading-bonuses-sets-leverage-cap-of-150-on-cfds/ (https://smnweekly.com/2016/12/06/uks-fca-bans-trading-bonuses-sets-leverage-cap-of-150-on-cfds/)) Who knows what other regulators will follow suit.
Title: Re: True and fake bonuses offered by brokers
Post by: drunkfx on December 12, 2016, 09:05:07 PM
Anybody used bonuses from Hotforex? Is it safe to use bonuses for news trading or better to stay away from them?
Title: Re: True and fake bonuses offered by brokers
Post by: Adam Milne on March 13, 2017, 01:38:01 PM
The bonus offer we get from our trading brokers practically cannot use at all due to many restrictions. but if we can make sure the regulated broker it would be better , otherwise it is useless to have 100-200% bonuses which cannot use at all due to margin stop outs.
Title: Re: True and fake bonuses offered by brokers
Post by: Antje Wagner on March 13, 2017, 04:07:07 PM
Anybody used bonuses from Hotforex? Is it safe to use bonuses for news trading or better to stay away from them?

carefully read the Bonus T/C before using it. not only with Hotforex, but with all brokers who still offer a Bonus.
Title: Re: True and fake bonuses offered by brokers
Post by: Peter Nevill on March 13, 2017, 07:32:27 PM
I am not willing to use at any kinds of bonus offer because all are disgusting and fake,    but the brokers who are credible for all time ensure best trading environment for using any trading bonus offer by means of comfortable trading spreads as well minimum margin requirements.
Title: Re: True and fake bonuses offered by brokers
Post by: forextraderr on August 11, 2017, 09:09:55 AM
I don't believe in brokers giving away bonuses because you are not able to withdraw it. You are only able to withdraw your profit and never the bonus that comes when you sign up. Isn't that a scam?
Title: Re: True and fake bonuses offered by brokers
Post by: norman on September 08, 2017, 02:07:42 PM
Bonuses are not a scam and some companies allow you to withdrow bonuses if perform their conditions.
Title: Re: True and fake bonuses offered by brokers
Post by: Paul.Trafford on September 19, 2017, 10:52:44 AM
The way I understand bonuses and how usually they work, is that your broker is giving you some bonus that you can use for trading, but you can't withdrawal. I remember back in the time, some of the brokers would agree to drop your Stop out level, and there were the cases where you can make a lot of money. Explaning - You either open 2 accounts (with the help of friend ) on the same broker that have agreed to drop your stop out level as much as it can, or you open two accounts with 2 different brokers. From there it is a pure hedging with the accounts ( You invest 1000 $ and receive $ 500 bonus, thus you are now controlling an Equity of 1500 $, the same is the situation with the second account. Although you can only withdrawal the capital without the bonus. If you manage to loose everything in 1 trade (Stop out event lower as much as you can), then in your other account you will have aprox 3000. So you have invested 2000 (separately in two accounts) + the two bonuses of 500. Now as 500 out of the 3000 are still being considered as bonus , you cant really withdrawal them. But you can withdrawal the rest 2500, so sort of speaking you have transfer the bonus in your other account, allowing you to withdrawal it. Now again for this thing to work you have to have very low level of stoup out on both accounts. But I know people in the past who have done this.
Title: Re: True and fake bonuses offered by brokers
Post by: Diego on September 29, 2017, 09:00:52 AM
There are different bonuses. Sometimes they can even be straightforward and profitable for traders. But often they have bad conditions. Traders fall for them because they don't read their conditions carefully or don't read them at all.
Title: Re: True and fake bonuses offered by brokers
Post by: Haffizz on September 26, 2018, 01:49:25 PM
Hi everybody! I’ve just found some interesting promotion form JustForex, but only for clients from Thailand. The broker offers to get 100% bonus on deposits from 50 USD. For example, you deposit an account with 60 dollars and get 120 dollars on your account instead.

 Here is the link REMOVED AFFILIATE LINK for more detailed information.

Hope this will be useful for you ;)

Title: Re: True and fake bonuses offered by brokers
Post by: vontogr on September 26, 2018, 03:23:45 PM
I have came across some of the bonus offers from brokers and I must say that most of them are FAKE.

There are very-very few brokers that offer real trading bonus (or maybe I have not found them) and most of them try to fool the traders with their so called "trading bonus" which is not more than only a rebate if you trade a tremendous amount of lots.

In my point of view real trading bonus is that what you can use for trading, make higher gains with it and lose it if your position goes against you. Otherwise it is a complete financial suicide to open a larger lot size just because you have the "bonus" on your account.
The sad part of the story is that most of the brokers tried to convince me to take their bonus and I can open a larger lot size and make more money but when I have asked what happens when my floating loss reaches the level of my original deposit they said the bonus will be withdrawn, which means that they pull the floor out of my feet when I am in trouble.

They set impossible targets to withdraw or even to be able to use the bonus amount for trading, such as trade 1 lot for each $1-2. If you get a $1000 bonus you have to trade at least 500-1000 lots to be able to use it. If you try to do so it is 99.9% sure you will fail.

This practice should be illegal!

What do you guys think about that?

Do you use any of the available bonus schemes of any brokers?
Have you found any honest one that offers any kind of trading bonus?
Based on my experience such bonuses are always removed when you most need it so in case you are out of margin on your funds.
Title: Re: True and fake bonuses offered by brokers
Post by: drunkfx on September 29, 2018, 03:27:59 PM
I have came across some of the bonus offers from brokers and I must say that most of them are FAKE.

There are very-very few brokers that offer real trading bonus (or maybe I have not found them) and most of them try to fool the traders with their so called "trading bonus" which is not more than only a rebate if you trade a tremendous amount of lots.

In my point of view real trading bonus is that what you can use for trading, make higher gains with it and lose it if your position goes against you. Otherwise it is a complete financial suicide to open a larger lot size just because you have the "bonus" on your account.
The sad part of the story is that most of the brokers tried to convince me to take their bonus and I can open a larger lot size and make more money but when I have asked what happens when my floating loss reaches the level of my original deposit they said the bonus will be withdrawn, which means that they pull the floor out of my feet when I am in trouble.

They set impossible targets to withdraw or even to be able to use the bonus amount for trading, such as trade 1 lot for each $1-2. If you get a $1000 bonus you have to trade at least 500-1000 lots to be able to use it. If you try to do so it is 99.9% sure you will fail.

This practice should be illegal!

What do you guys think about that?

Do you use any of the available bonus schemes of any brokers?
Have you found any honest one that offers any kind of trading bonus?
Based on my experience such bonuses are always removed when you most need it so in case you are out of margin on your funds.

What type of trading bonuses have you used so far? Have you tried credit bonus which increases your trading power?
Title: Re: True and fake bonuses offered by brokers
Post by: drunkfx on November 25, 2018, 07:26:32 AM
Soon bonuses will be banned in many parts of Europe, at least. Both the British FCA and the Cypriot CySEC financial regulators have issued statements that they are banning trading bonuses and newbie account bonuses. (https://smnweekly.com/2016/12/06/uks-fca-bans-trading-bonuses-sets-leverage-cap-of-150-on-cfds/ (https://smnweekly.com/2016/12/06/uks-fca-bans-trading-bonuses-sets-leverage-cap-of-150-on-cfds/)) Who knows what other regulators will follow suit.

What do you mean under fake bonuses? When you see discounts in the shop you also call them fake? It's all about marketing efforts and you have to understand that searching for money give-away from brokers will yield nothing or even scam place.