What bonuses is profitable?

FxMaster

Lt. Colonel
Messages
9,023
Dear FPAians,

What do you think about Bonuses offer from brokers?

Don`t add broker name in this thread please.
 
Last edited:

downtrend

Sergeant
Messages
872
Most of the bonuses are a trap either to attract new clients or to make the trader "think" its real money as bonus in his account. You only trade with your own money in case of any "deposit bonus" offer and no deposit bonuses are deducted when you withdraw any profit from such accounts.
 

iMusingKiMi

Sergeant
Messages
896
Most of the bonuses are a trap either to attract new clients or to make the trader "think" its real money as bonus in his account. You only trade with your own money in case of any "deposit bonus" offer and no deposit bonuses are deducted when you withdraw any profit from such accounts.
I would rather say those deposit bonus like double your account with margin is definitely a trap. They actually didn't give you the credit, they just wanted you to open more position.
 

bigdolly

Sergeant Major
Messages
961
I would rather say those deposit bonus like double your account with margin is definitely a trap. They actually didn't give you the credit, they just wanted you to open more position.
I think bonuses are trap for those witty traders expecting to get free money from broker. I understand its purpose as increasing your margin to reduce the pressure from leverage risks. Only uneducated trader will consider bonus as a solicitation to open bigger position as leverage possess essentially the same feature and none of us says that brokers offering high leverage solicit us to use its full power.
 

mageral

Banned spammer for FreshForex
Messages
8
Now a lot of fascinating offers are released not only bonus funds but also for example 500 USD as a gift for new clients from freshforex broker. Thus, you may trade a significant amount without your own funds involved.

Spam Cat says any gift of $500 in fake money is just a trap to steal your real money. Spam Cat thinks traders should never do business with spammers.

 

iMusingKiMi

Sergeant
Messages
896
I think bonuses are trap for those witty traders expecting to get free money from broker. I understand its purpose as increasing your margin to reduce the pressure from leverage risks. Only uneducated trader will consider bonus as a solicitation to open bigger position as leverage possess essentially the same feature and none of us says that brokers offering high leverage solicit us to use its full power.
No free lunch in this world especially Forex. Forex is just a place with bunch of predators hunting for prey, so how can those guy expect to have free money?;)
 

NicholasM

Corporal
Messages
100
Now a lot of fascinating offers are released not only bonus funds but also for example 500 USD as a gift for new clients from freshforex broker. Thus, you may trade a significant amount without your own funds involved.
Whichever way you look at it your funds are always involved.I believe the only way your funds would'y be involved is if the broker allowed you to trade with only the bonus and no requirement to fund the account with your money. However, that is not the case, and in fact sometimes traders are required to achieve certain levels of trading volume in order to access their funds again for withdrawal. That is like white water racing, a dangerous game.
 

Pharaoh

Colonel
Messages
19,783
A modest bonus with clear and reasonable terms from a trusted broker may be ok. The problem is that even good brokers are pressured to offer large bonuses to compete for clients, and brokers don't make money by giving money away. Then there are the groups that hedge between accounts to try to effectively transfer the bonus from some accounts into withdrawable profits in other accounts. This leads even "good" brokers into creating bonus offers which are stacked heavily against clients.

Don't take a bonus unless you have a good history with the broker and trust the broker.
Don't take a bonus until you've carefully read and fully understand the terms.

If this is too difficult, then just don't take a bonus.
 

bigdolly

Sergeant Major
Messages
961
A modest bonus with clear and reasonable terms from a trusted broker may be ok. The problem is that even good brokers are pressured to offer large bonuses to compete for clients, and brokers don't make money by giving money away. Then there are the groups that hedge between accounts to try to effectively transfer the bonus from some accounts into withdrawable profits in other accounts. This leads even "good" brokers into creating bonus offers which are stacked heavily against clients.

Don't take a bonus unless you have a good history with the broker and trust the broker.
Don't take a bonus until you've carefully read and fully understand the terms.

If this is too difficult, then just don't take a bonus.
Could you elucidate a bit more about that "groups hedging between accounts, turning bonuses into withdrawable profits". What is the technique used for that? Are there any public information available on that matter?
Thanks
 
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