I keep reading how so many scammers and paid posters write about how their broker offers x-amount of money for free to new traders.I am always amazed how many new traders believe that this is true.
While I am not arguing against the fact that once you open an account that you will receive whatever funds were promised, but most don't bother to read the terms and conditions tied to it. You need to understand that no broker will take a loss on your behalf and that if you for example get $100 for 'free', that the broker does have a plan.
You will need to at least trade a certain amount of lots and plenty of those brokers who offer bonuses like that carry rather high spreads of up to 3 pips. This means that per 1.0 lot they make $30 in a standard account and often they ask you to trade 10 lots or more. This means they would make $300.
On the other hand there is almost no way you will trade 10 lots on a $100 account in the timeframe given which means that you get the $100, place a few trades and make the broker money without ever having the chance to withdraw. This is not a scam, it is legit and they mention it all in their terms and conditions.
I always tell new traders to trade their own money. Trade what you can afford to lose, but if you really insist in taking a bonus at least make sure you understand the terms and conditions 100% so you know what you are signing up for before you run around and scream scam after your withdrawal request has been denied or your profits cancelled.
Trading requires capital and while you may fund your account with $100 or less, you will never be able to actually trade with little amounts like that.
While I am not arguing against the fact that once you open an account that you will receive whatever funds were promised, but most don't bother to read the terms and conditions tied to it. You need to understand that no broker will take a loss on your behalf and that if you for example get $100 for 'free', that the broker does have a plan.
You will need to at least trade a certain amount of lots and plenty of those brokers who offer bonuses like that carry rather high spreads of up to 3 pips. This means that per 1.0 lot they make $30 in a standard account and often they ask you to trade 10 lots or more. This means they would make $300.
On the other hand there is almost no way you will trade 10 lots on a $100 account in the timeframe given which means that you get the $100, place a few trades and make the broker money without ever having the chance to withdraw. This is not a scam, it is legit and they mention it all in their terms and conditions.
I always tell new traders to trade their own money. Trade what you can afford to lose, but if you really insist in taking a bonus at least make sure you understand the terms and conditions 100% so you know what you are signing up for before you run around and scream scam after your withdrawal request has been denied or your profits cancelled.
Trading requires capital and while you may fund your account with $100 or less, you will never be able to actually trade with little amounts like that.
