Should I Use a Welcome Bonus?
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A welcome bonus is an introductory type bonus that is offered to the new users. The welcome bonus helps boost users’ first earnings and withdraw the money from their accounts.
The welcome bonus is bigger than other bonuses, and brokers use it for promotions and to attract new users. This bonus is credited to the new clients as they make their first deposit. The rates of the welcome bonus are 30%, 50%, and 100%.
How does the welcome bonus work?
It is very simple to use a welcome bonus. Users have to follow the given steps to avail a welcome bonus.
- Register on the broker’s website.
- Verify the account.
- Deposit in your account (funding the account).
- Receive the credit of the welcome bonus.
- Fulfil the requirements for the withdrawal.
Let’s say a broker proposes a new user 100% welcome bonus from the deposited amount. So, the client deposits $1000 in the account on which the broker gives an additional $1000 to the user’s account. So overall, the user has $2000 in his account.
But a bonus is rarely credited directly to the user’s live account. Instead, companies provide welcome bonuses as trading credits, and clients have to fulfil certain requirements to withdraw their earnings. Most brokers use bonus funds for increasing margins when opening the trade and for covering a slippage.
When do we use the welcome bonus?
While deciding to avail of a welcome bonus, you should first know about its pros and cons. Also, you should get a complete understanding of the welcome bonus if it is suitable for you or not. Finally, you should only use a welcome bonus if it suits you.
Advantages and disadvantages of welcome bonus
The brokers’ welcome bonus to the newly registered users has many advantages and risks that should be known to the user before accepting it. First, the broker must give a complete understanding of terms and conditions, and then clients should make the choice whether they agree to accept it or not. Let’s discuss some advantages and disadvantages of the welcome bonus:
Advantages
- The welcome bonus provides additional financing to the users. It is beneficial for clients who could not make deposits of large amounts.
- The bonus funds received by the clients can be used for covering a slippage and avoiding margin call while opening the trade.
- The trader who receives a welcome bonus can start trading on a real account by making a deposit.
Disadvantages
- There are some conditions for using a welcome bonus that create limitations for the traders.
- The traders who received a welcome bonus make rash decisions and carry risks in trading.
- It is difficult to withdraw bonus funds from the account because it requires certain requirements to be fulfilled.
Best welcome bonuses in 2021
There is a list of some welcome bonuses that forex brokers offer to their new users. The top brokers provide interesting programs to the new traders because they want many traders to trade with them. For that purpose, they propose users with the most interesting offers available in the market to attract them. Also, the new clients should agree to accept or reject the offer after getting detailed information on bonus features. The list of best welcome bonuses in 2021 is as follows.
XM
XM is one of the top brokers that offers a welcome bonus at the rate of 100%. To get the bonus from it, firstly, the user has to open an account. Then deposit $5 in his account. And after trading one lot, users can get a bonus of $10 in every earning. – Click Here
AvaTrade
To get a welcome bonus from AvaTrade, users only have to deposit $1000 after opening an account and get 20% on every deposit. But this broker provides bonuses only to non-European clients. – Click Here
RoboForex
RoboForex provides a welcome bonus at the rate of 100% on the first deposit. To get this welcome bonus, users have to open an account and then, after the verification, deposit at least $10. After fulfilling these conditions, traders can get bonus funds from RoboForex. – Click Here
FBS
FBS broker also offers a welcome bonus at the rate of 30% on the first deposit. After that, users only have to open a new account and get a 30% bonus from the broker. Then the user has to trade to convert the bonus in his trading account for the withdrawal. – Click Here
Exness
Exness also provides its client bonus at the rate of 10% on the first deposit. To get the welcome bonus from the broker, the new client has to open an account and fund it. After depositing, the client can get a 10% bonus on his deposit after contacting his manager. – Click Here
How to withdraw welcome bonuses?
The withdrawal system of every broker varies because every broker has its requirements and conditions that should be fulfilled to withdraw the bonus. The brokers set these requirements to avoid fake registrations and protect the funds from premature withdrawal. However, some rules and regulations required by the brokers are following:
Trading volume
Some brokers set a specific limit of trading, which means the new client must have to trade in lots required to get the bonus. So the welcome bonus funds can only be credited if the client makes a specific limit of trading.
Increase the volume of a trade at a specific amount
The brokers offer the user-specific amount of welcome bonus that requires increasing the amount several times to get bonus funds.
Pay the specific amount of commissions for withdrawal
The broker wants its user to pay as many commissions as possible. Sometimes brokers directly link the commission paid by the user to the bonus. So the faster the trader fulfils the specific amount of trades required, the faster he can withdraw the bonus funds. But users can use the bonus funds for recovering losses and slippage or increasing the opening trade but can not withdraw it before fulfilling the broker’s conditions.
Bottom line
The brokers offer various welcome bonuses with different requirements that need to be fulfilled to withdraw the amount from the account. The new users should avail these bonuses after getting the complete information about the bonuses’ pros and cons. Then they should decide which bonus is suitable for them.
Jason Morgan is an experienced forex analyst and writer with a deep understanding of the financial markets. With over 13+ years of industry experience, he has honed his skills in analyzing and forecasting currency movements, providing valuable insights to traders and investors.
Forex Content Writer | Market Analyst
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