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Where do bonuses come from?

Discussion in 'Beginners Bootcamp' started by lilfun, Feb 2, 2010.

  1. lilfun

    lilfun Recruit

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    Look, people. I checked a lot of Forex brokers and almost every single one offers 10,20,50 and even 100% bonuses on deposits. This make me think that it is too good to be true. I mean if they give all their clients free staff where do they take it from? If all of them know where the pot of gold is hidden, why don't i know that?

    .... or I have a feeling that it is going to be me to pay for the party ....
    right?
     
  2. cowmadagan

    cowmadagan Sergeant

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    Admittedly, my experience is only with bigger brokers that advertise on heavy duty channels and websites, and are registered by the financial authorities of the US and UK.

    The only bonuses I've seen among them is about $50 or more, and not percents.
    A 100% bonus sounds like, and I feel must be, a ponzi scheme.
     
  3. Pharaoh

    Pharaoh Colonel

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    The bonuses really come from you, the trader.

    Brokers make money on spread and/or commissions (some also make money on losing trades - see bucketshop in the glossary). Read the fine print of that bonus agreement. You have to reach a minimum trade volume before you can withdraw the bonus. Some won't let you withdraw anything until you've reached that minimum trade volume, thus trapping your money in the account.

    When you crunch the numbers, most bonuses end up only being a modest rebate on the spreads of those minimum number of trades, far less than the profit margin the broker has built into their system.

    Read the agreements VERY carefully before accepting a bonus. Some are so restrictive that you would be far better off not accepting it.
     
  4. cda

    cda Recruit

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    am agree with u, When i joined fxopen in standard a/c and completed 10 complete lot of trading i received 100 usd as bonus according to their terms and promotion. If any Broker offering bonus in % that means they are to hungry too eat ur pocket, be aware of them.
     
  5. lilfun

    lilfun Recruit

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    But anyway you have to admit that 100% extra credit did really allow you increase your trading capital, hence decreasing your risks dramatically. So if you are cautious trader you can use it as an advantage in your trading. Most of the brokers do not state any bonus terms (at least clearly), so I do realize that there is something to pay for (either volume, or min deposit or smth else). But if you consider it as a risk minimizing tool, you can gain. Don't you think so? Obviously you have to be careful with choosing a broker, but anyway ....

    Just this piece of pie seems to be too close and too good to miss :)
     
  6. cda

    cda Recruit

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    According to me fxopnen is the best among non usa/uk brokers
     

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