Is it wise to avail Bonus deposit for Forex trading ?
It is not advisable to go for bonus deposit. By accepting the bonus amount in your trading account , you are liable to additional bonus terms and conditions of the broker. The trader is barred from withdrawing his own money until he fulfils the bonus terms and conditions. The most difficult condition is – to carry out a huge volume of transactions before being eligible for fund withdrawal.
Most the Forex brokers require that the Customer must execute a minimum trading volume of $10,000 for every dollar awarded as Bonus to the trader’s account (e.g. if Customer receives $100 BONUS deposit, he will need to have a minimum trading volume of $1,000,000).
As you can see in above example , it is quite impossible to achieve such a HUGE volume of trading against a small bonus deposit. The bonus system has never been implemented for the benefit of the Forex trader. Its primary aim is to ATTRACT customers, and the customer who accepts bonus gets trapped into the Broker’s bonus system and majority of them lose money.
Hence bonus should never be a factor to be considered for selecting a Forex Broker. The broker who doesn’t give any bonus is better than those who offer bonus.
Recently Cyprus Securities and Exchange Commission (CySEC) and European Securities Markets Authority (ESMA) have issued circulars prohibiting Bonus deposits in retail clients account by Forex brokers.