Who doesn’t love free cash! And what if you can get that free cash to start forex trading? We know you are excited to learn more about this free bonus. In this guide, we will break down what forex no deposit bonus is and how it works.
What is no deposit bonus?
Many forex brokerages give no deposit bonuses to appeal promotional offers to their customers in order to distinguish themselves and draw the interest of new traders. One of these types of promotional offers is a no-deposit bonus.
A no deposit bonus is offered to new traders who open an account with a particular brokerage.
No-deposit forex bonuses are usually not as high as deposit bonuses. Depending on the broker, they vary between $10 and $200. They are designed to introduce new traders to the world of real money trading and are not intended to be used for profit-seeking trading.
Consider it a live, real-money practice account in which you hold all profits. You have lost nothing if you lose money.
Free incentives are an excellent way for traders to become acquainted with the forex market, including the emotions and pressures of trading with real money. No deposit bonuses are a great way to get started trading without risking any money.
Many traders get confused about deposit and no-deposit bonuses. You should keep in mind that no-deposit forex bonuses do not require an initial deposit into the trading account before being rewarded.
This aspect separates a no-deposit forex bonus from a deposit bonus, which allows the trader to deposit before it is paid.
How does it work?
Let’s break down how you can get a no deposit bonus.
First, you need to open a real trading account with your forex broker. Then, the Forex broker tops you up with the bonus they offered as a percentage of the deposit. Finally, you can start trading with extra funds in your trading account.
See, it’s that simple!
Why do brokers offer a no-deposit bonus?
Of course, forex brokers aren’t giving you free cash for the goodness of heart. Forex bonuses are most likely the most important promotion that a forex broker provides.
Along with the no-deposit bonus, you can find match deposits, demo accounts, refer a friend, and a range of other bonuses. They are all intended to give the broker an advantage and set them apart from the competition.
In a competitive world of financial markets, with everyone trying to own the market and be the best, these bonuses can help the broker accelerate in the trading community.
The problem is that they can only go so far. Although one broker may provide a substantial no deposit forex bonus, another may provide an excellent demo account.
When looking for the best broker for a no deposit bonus, you will be presented with a lot of options, each with its own set of forex bonuses.
It can be difficult to know where to begin with bonuses ranging from $5, $10, $20, and $25 to amounts specifying “up to $1,500.” Brokers attempt to distinguish themselves in every way they can.
This is great news for you as a trader. It means that you have a lot of options when looking for the best broker.
Suppose you can find a broker who offers forex no deposit bonus to use on your live account, a demo account, a smartphone app, and a website with a collection of educational resources. In that case, you’ll have pretty much everything you need.
Of course, you must ensure that your chosen broker is trustworthy and reliable.
Your questions about forex no deposit bonus
We know you’ll have a lot of questions popping in your head, so in this section, we’ll try to answer these questions.
1. What is the easiest way to find the best no deposit brokers?
There are so many options that it can be difficult to know where to begin. That is why you have to evaluate and choose your broker according to the conditions mentioned above.
2. Is it possible for me to withdraw my profit without difficulty?
There are specific rules for how a bonus should be used. Some platforms ask you to exchange the free bonuses many times before they are withdrawable. One example is that you have to swap $1 of bonus $1,000 times.
3. Are there any restrictions on these bonuses?
Before you can trade, some brokers can ask for proof. This involves uploading documents proving your identity. Other brokers can require you to enter a code to verify your phone number.
4. Is it true that all no deposit brokers are secure and reliable?
No, which is a shame. There are positive and negative aspects of all. Some brokers are not honest and may defraud you. But not everyone is like that.
5. Can I have several no-deposit accounts?
You certainly can. You can have several live trading accounts if you like, but you have to be careful. Having multiple accounts may lead to uncertainty and inconsistency in trading.
Pros
- Free money to trade and spend as you see fit.
- With no deposit bonus, you can test a brokerage platform before investing your own capital.
- If you want to try a new broker but already have one, you can use the no deposit bonus to do so.
- It’s a great way to try out new strategies and currency pairs.
Cons
- Some offers can seem to be too good to be true. Be wary of those who make large sums of money available.
- Small sums do not leave you with anything to trade with, particularly when you consider that you can have to pay a minimum of $5 or $10 per exchange.
- The money cannot be withdrawn immediately and must be exchanged many times.
- Getting sucked in by all the free bonuses can lead to you opening an excessive number of accounts and experiencing inconsistency.
Bottom line
If you are a beginner, claiming a no deposit bonus allows you to experiment with new strategies. However, you should consider the terms and conditions of every broker before opening an account.