No-deposit bonuses are used by Forex brokers to attract traders. Once you register and complete the verification process, your account gets funded with a small capital that can be used for trading on the real market. However, every broker has its own terms, conditions, and restrictions, so it’s important to understand them before you sign up. In this article, we explain how these bonuses work and what you should consider when choosing a broker.
About no-deposit bonuses
These bonuses are provided by brokers to help you start trading without any initial investments. It’s an especially convenient and risk-free way to test a new broker and learn about its trading conditions: the funds are not borrowed, so you can just spend them and leave. Of course, you can’t just cash out and leave with the money, but all the profits you receive are rightfully yours, and some traders manage to multiply their initial bonus and turn it into a decent capital without any additional deposits.
Most major brokers give you up to $50, and this sum usually gets transferred to your account as soon as you finish the registration process. However, some brokers require that you deposit a small sum of your own money first and reach a specific trading volume threshold to claim your bonus. You can find many different types of deposit bonuses with various conditions and characteristics, but how do these no-deposit bonuses work? Let’s analyze the most popular ones.
Types of no-deposit bonuses
Welcome bonuses are what we usually mean when talking about no-deposit bonuses. It’s a small sum of money granted to a new user that helps him get started. But you can also start trading without prior investments using your referral bonuses: you can receive them by bringing new users to the platform, and it’s also a great source of passive income. Some brokers also offer to multiply your initial deposit: for example, you invest $400, and the broker grants you $400 more for free.
Why such bonuses are useful
All types of no-deposit bonuses are quite beneficial. They are granted for free, and you do not have to return them later. Such bonuses allow you to start your trading career or test a new broker without any risks, and you can even use them to make profits. Trading with bonuses is slightly better than using a demo account since here you trade on the real Forex market. Sometimes you can even withdraw your bonus later.