What bonuses is profitable?

[iMusingKiMi]

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

I did know someone from Bangladesh who did this and earn ten over thousands from those bonus and he told me it actually works. Therefore, a lot of broker don't give bonus for those who stay in Bangladesh or Bangladeshi. He said he want to teach me on this but I have no interest in it. If you really do have interest for it, I can give you the contact.

 

[Pharaoh]

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

I don't want to write a how-to guide on how to get into a fight with a broker, but in simplest terms, imagine this:

You, me, FxMaster and iMusingKiMi all open accounts at a broker offering a 100% bonus. We all deposit $100, so have $200 in our accounts. Then we make a plan.

We wait for good opportunity for the market to make a big move - possibly the NFP release. You and I go long on the EURUSD with a big trade. FxMaster and iMusinKiMi go short - thus hedging the 4 of us. The news is bad for the US, so the price moves up hard and fast. FxMaster and iMusinKiMi get margin calls. You and I both made $200 in profits.

The next week, there's a central bank interest rate announcement and signals are very mixed about whether they'll increase the rate or not. You and I place trades in opposite directions. The announcement is a big surprise and I'm wiped out. Your balance goes to $800.

If you have managed to meet the minimum trading terms tied to the bonus (not likely, but this is a super-simple example), you could get either $700 or $800 out now (some bonuses can never be withdrawn, others can). This means that as a group, we've made $300-$400 profit with very little risk.

Brokers use bonuses to lure in traders. Even though what I described above is prohibited by the most common bonus terms, many traders either form groups or get non-trading friends and relatives to open accounts for them to try to get around the rules and get free money. Brokers aren't stupid and are watching for this sort of activity. Since so many people really do it, this places legitimate traders at risk of accidentally being identified as part of a cheating group, or of being falsely accused of cheating by a bad broker.

The best solution - skip bonuses unless you already have a firmly established relationship with the broker and trust the broker. Even then, if you have a dynamic IP and place a trade that hedges someone else who took a bonus who ever used the same IP, you could have problems.

 

[Pharaoh]

I did know someone from Bangladesh who did this and earn ten over thousands from those bonus and he told me it actually works. Therefore, a lot of broker don't give bonus for those who stay in Bangladesh or Bangladeshi. He said he want to teach me on this but I have no interest in it. If you really do have interest for it, I can give you the contact.

If he had a reliable way to do this, he'd keep it very very quiet. More likely, he may have made some money from a bonus abuse system and wants to sell it now that it stopped working because the brokers caught on.

 

[bigdolly]

I don't want to write a how-to guide on how to get into a fight with a broker, but in simplest terms, imagine this:

You, me, FxMaster and iMusingKiMi all open accounts at a broker offering a 100% bonus. We all deposit $100, so have $200 in our accounts. Then we make a plan.

We wait for good opportunity for the market to make a big move - possibly the NFP release. You and I go long on the EURUSD with a big trade. FxMaster and iMusinKiMi go short - thus hedging the 4 of us. The news is bad for the US, so the price moves up hard and fast. FxMaster and iMusinKiMi get margin calls. You and I both made $200 in profits.

The next week, there's a central bank interest rate announcement and signals are very mixed about whether they'll increase the rate or not. You and I place trades in opposite directions. The announcement is a big surprise and I'm wiped out. Your balance goes to $800.

If you have managed to meet the minimum trading terms tied to the bonus (not likely, but this is a super-simple example), you could get either $700 or $800 out now (some bonuses can never be withdrawn, others can). This means that as a group, we've made $300-$400 profit with very little risk.

Brokers use bonuses to lure in traders. Even though what I described above is prohibited by the most common bonus terms, many traders either form groups or get non-trading friends and relatives to open accounts for them to try to get around the rules and get free money. Brokers aren't stupid and are watching for this sort of activity. Since so many people really do it, this places legitimate traders at risk of accidentally being identified as part of a cheating group, or of being falsely accused of cheating by a bad broker.

The best solution - skip bonuses unless you already have a firmly established relationship with the broker and trust the broker. Even then, if you have a dynamic IP and place a trade that hedges someone else who took a bonus who ever used the same IP, you could have problems.

Thanks, Interesting strategy actually. And what if I try to do that without bonus involvement? As I understand on one trade I will get margin call and for other (providing that I used bigger lot size) will make money that will cover loss from my second account right and even yiled me some profit... Any pitfall?? (thinking about candle tails can trigger my stops on both positions, thus result in 2 position losses)

 

[kemer roach]

Personally, I do not like to get bonus from my broker. Because, I see most of the market maker broker are offering big bonus. I need 100% capital security not big bonus.

 

[iMusingKiMi]

If he had a reliable way to do this, he'd keep it very very quiet. More likely, he may have made some money from a bonus abuse system and wants to sell it now that it stopped working because the brokers caught on.

He don't really intend to sell me the system. Because of he is Bangladeshi and most broker doesn't offer them any bonus, therefore he asked me for help to find someone register on broker outside of Bangladesh. Not sure how he do that, but most of his bonus abuse loss to poker game. That's the fact I know.

 

[iMusingKiMi]

Personally, I do not like to get bonus from my broker. Because, I see most of the market maker broker are offering big bonus. I need 100% capital security not big bonus.

Frankly to say in my opinion, some bonus is good to take because as a value added but not those 100% margin credit bonus. Because some bonus just need some trading turnover for withdrawal, therefore you can just keep the bonus, trade as usual but don't include those bonus fund in your MM. After probably 2 or 3 months of trading, your turnover might be good enough for withdrawal. Bonus can be claim, but must be discipline. If someone think that to claim bonus and withdraw it next week or two, forget about it.

 

[NicholasM]

The only benefit you get from accepting a signup bonus is the ability to gain more leverage. But I think in that case it poses more danger to your trading philosophy than opting not to take it because you could be tempted to leverage high, forgetting the there are restrictions attached to every bonus.

 

[iMusingKiMi]

The only benefit you get from accepting a signup bonus is the ability to gain more leverage. But I think in that case it poses more danger to your trading philosophy than opting not to take it because you could be tempted to leverage high, forgetting the there are restrictions attached to every bonus.

Even accepting bonus needs discipline.

 

[DavidC1]

I agree. Couple of friends got taken with the trap. Not worth it. Have to read the fine print.