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Author Topic: True and fake bonuses offered by brokers  (Read 24681 times)

T_Hair_DFX

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Re: True and fake bonuses offered by brokers
« Reply #15 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

Offline MaximB13

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Re: True and fake bonuses offered by brokers
« Reply #16 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"  ;)

Offline 999cjb

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Re: True and fake bonuses offered by brokers
« Reply #17 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  :)

Offline hashim

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Re: True and fake bonuses offered by brokers
« Reply #18 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.

Offline fx.mstr

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Re: True and fake bonuses offered by brokers
« Reply #19 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.
If you find my post interesting, funny, boring, annoying or meaningless please donate $1 to any animal shelter. :)

Offline rodneyp

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Re: True and fake bonuses offered by brokers
« Reply #20 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?

Offline bruce_knee

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Re: True and fake bonuses offered by brokers
« Reply #21 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

Offline uzakon

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Re: True and fake bonuses offered by brokers
« Reply #22 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 thats 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.

Offline odysseus11

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Re: True and fake bonuses offered by brokers
« Reply #23 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).

http://www.forexfusion.com
stop gambling. start trading.

Offline ichamp

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Re: True and fake bonuses offered by brokers
« Reply #24 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.

Offline MatthiasHuber

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Re: True and fake bonuses offered by brokers
« Reply #25 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.

Offline Ron

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Re: True and fake bonuses offered by brokers
« Reply #26 on: July 07, 2016, 04:06:34 PM »
you can only trade 0.2 lots and for 10 days

Offline growing_mark

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Re: True and fake bonuses offered by brokers
« Reply #27 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!

Offline drunkfx

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Re: True and fake bonuses offered by brokers
« Reply #28 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

Offline ichamp

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Re: True and fake bonuses offered by brokers
« Reply #29 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

 

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