Bonus promotions from brokers and trading platforms have long become a common attribute of the market and are often decisive factors when choosing a company or determining the amount credited to a trading account. But it may sometimes happen that the received bonuses turn against a trader and speed up the process of zeroing the deposit. How can you figure out whether a bonus from a broker is a purely marketing tool or can really increase the efficiency of your trading? Let’s try to answer this question further in this post.
Identify the Best Bonus Offers With Ease!
When looking for the best trading platform to register at, one should definitely pay attention to the current bonus offers. The thing is that bonuses have recently become one of the most popular marketing tools used by various brokers to gain a competitive edge over their competitors. And a deposit bonus is one of such attractive offers that allows you to get an extra trading budget by using a promo code for Olymp trade for this purpose.
Bonuses come in handy as they help increase your deposit when trading real money. And most of them are suitable for all classes of traders – both novice and seasoned market participants. But how do bonuses work, and should they be preferred when looking for the best trading platform? Let’s check two main types of bonuses and their features.
You will be able to choose from two different types of bonuses:
- No deposit – It refers to the funds that the broker deposits into the trader’s account as soon as the latter verifies one’s trading account on the platform. Both novice and experienced traders can also use bonus credits to gain a deeper understanding of the specific systems of the brokerage platforms. However, the terms of its availability vary from one broker to another. Some platforms prohibit the withdrawal of the bonus or the profit received from its use until the first deposit is made.
- Deposit – It is an additional amount of money credited to a trader’s account as a reward for one making the first deposit. Most brokers support a step deposit bonus scheme aimed at attracting higher initial deposits. The higher it is, the higher the bonus is. This is the most attractive offer for experienced traders looking to increase their account balances and use bonus funds as a margin for their trades.
How Do Bonuses Work?
In order to understand how no deposit or deposit bonuses work, it is necessary to read the terms and conditions of the preferred broker. In the case of a no deposit bonus, there is often no limit on the number or amount of trades that can be executed. However, most brokers will require a trader to make a minimum initial deposit first before they can withdraw the free bonus and any profits accumulated as a result of using it.
The deposit bonus is slightly different in terms of trading volumes. Trading volume here means the requirement for the number of transactions that a trader must fulfill within a certain period if one hopes to receive a trading bonus, a profit from using it, or both. Some brokers also set specific time frames (often from 30 days to six months) within which this lot size must be sold.