Ebin posted: I trade with FP Markets, they offer no Bonus, but spreads and commission cost are lower when compared with other similar brokers.
I trade with brokers that do not offer bonuses because its just a marketing trick to lure in traders and scam them, which is why i trade with FP Markets.
A somewhat over cynical view. The reality is not that bad. Bonuses are a marketing tool for sure. A broker is a business after all and of course they use things like bonuses to lure people. It's no different to any other form of marketing.
The problem with bonuses are two fold :-
1. It is hardly ever possible to trade the volumes required to withdraw the bonus, especially for newbies. 2. Most traders don't read the terms and conditions and they end up claiming the broker is a scam because they did not understand that the bonus is not free money.
I think both the Australians & ESMA have prohibited bonus, so you will often find bonuses being offered by the offshore 'less regulated' brokers. Now whilst that is indeed the turf of several scam brokers, that does not mean the a broker that offers a bonus is a scam. There are some good brokers like FBS, Hotforex that offer bonuses. I personally never get involved with bonuses but their existence doesn't automatically spell scam.
CirillaCosta posted: Choosing the right broker is the most difficult job in this market. You can research about the brokers from different websites that provide broker reviews, forums, webinars, etc.
Actually be very careful where you take your recommendations from. There are many 'review' sites that are simply undercover Introducing Brokers. They provide what looks like an objective review and/or analysis but actually don't care which broker you choose because they get paid by all of them.
You also need to take a lot of reviews with a pinch of salt. If you see enough of complaints you will understand that forex has a bigger share of idiots than most places. Unfortunately these idiots tend to be quite vocal and shout down a lot of the good brokers. I mean literally calling a broker a scam because he has lost track of his $60 credit card refund.
SofieAndreasen posted: Right. Most of bonuses are non-withdrawable. So, it is kind of valueless in my opinion.
Same here! I saw many people choose brokers because of the bonuses they offer, even i was also tempted towards bonuses in the starting of my career but now i focus more on broker’s condition rather than focusing on bonus.
MuhamadRazak posted: Im trading with M4Markets right now because they offer a 50% credit bonus. So basically for every deposit I make they give me 50% so I can open bigger trades with less capital.
You cant As at the moment you would need bonus to cover the DD it will be cancelled The stop-out level is the amount of the bonus and the account equity cannot go under the bonus awarded initially. For example, if your initial deposit was $1,000 and the bonus awarded was $500, raising your account equity to $1,500, the stop-out level will be $500 if you lose. Therefore, you will reach the initial bonus which had been credited to your account and the bonus will be automatically removed from your account Moreover it does not work on mt4 nor for Europe nor for China The Promotion’s conditions: 1. Only applicable to verified clients of M4Markets trading on the MT5 trading platform. 2. Clients from China and Europe are excluded from this promotion.