How to work with bonuses on Forex?

Hello, dear friends, forex traders!

Earlier, we wrote about various brokers promotions, and what is behind them. In short, bonuses are evil. In most cases, these bonuses are almost impossible to withdraw, as conditions require a very large turnover, or have other restrictions that do not allow full use of issued funds.

Terms of bonuses are calculated in such a way that the trader actually pays the bonus out of his pocket, with a part of the commission on transactions. In addition, such actions usually do not imply the loss of the bonus in the case of subsidence or provide a significant increase in the level of stop-out. That is, traders are given the means to open a large position, but can not fully enjoy them.

But the years go by, traders are getting smarter and more and more companies provide really useful bonuses and promotions. On what bonuses you can take, what to look for in terms of providing bonuses, as well as how to use them CORRECTLY in trade, we’ll talk today.

The most important thing - the conditions of “cheese in a mousetrap”

Gradually, companies are beginning to offer bonuses with adequate conditions. Previously, to obtain any benefit from such promotions was almost unreal, competition is forcing companies to create more attractive offers. Before selecting a bonus, you need to pay attention to some of the key conditions, which can evaluate the benefits of a specific proposal for a trader to trade directly.

Basic moments

Does the bonus participate in trade?

Most important is to assess the degree of bonus participation in the trade. Does traded bonus burn when equity falls below the level of bonus money? If not, this bonus can be used for collateral and payment for the drawdown. And then he seemed to increase your account balance.

Time for working off

The conditions usually indicate the maximum time to use a bonus, after which the bonus is fully burned. If there is such a restriction, it must be considered in the trade.

Trade turnover ?

The main obstacle to the transformation of bonuses to “real money” is a trade turnover. The logic is simple: the more you need to gain by trading the lots, the harder it will be to withdraw the bonus. Big mistake - put bonus refinement as a goal itself. However, if the trading system is designed for a greater frequency of transactions, a simple calculation shows, for what period can this bonus be used. When calculating you should take into account the previous point - the maximum time to work out.

Partial working out - is there such a possibility?

A great advantage can be considered the possibility of partial working out of a bonus. In this case, the size of the bonus will depend directly on how much you gain by selling lots.

Withdrawal restrictions – do you have them?

The bonus can be either withdrawn or not. It is important that the bonus does not limit the profit withdrawal from the account. If any additional actions are required for profit withdrawal, such bonus should not be used.

Restrictions on leverage?

Some types of bonuses may limit the maximum leverage. This is a common ploy, because of which all sense of the use of bonus is lost, as this does not give any benefit to the trader. In such cases, it is better to give preference to the standard type of account with big leverage.

Use of bonuses in trade

First of all - FORGET about working out all the bonus or withdrawing it all. It is unreasonable and definitely not worth the effort, time and risk.

In trade, the bonus can be used similarly to the increased leverage. In fact, a bonus allows you to open a position at a larger size for the same money.

So, you got a bonus on your account.

Let’s say, your deposit is $100, and bonus - 30%. And now you have $130 on your account. What are you doing? At the opening of the transaction count the trading lot as usual, such as 3% risk rate of the deposit on the deal, but do not take into account a deposit of 100, but 130. The rest is as usual.

No huge lots, no unnecessary transactions to increase a turnover for bonus working out - leave that nonsense to naive students.

When/if the bonus is burned, it is necessary to recalculate the MM taking into account the changed size of the deposit. That’s it.

No deposit bonus

Can also be used to your advantage. Despite the fact that the withdraw of such a bonus is even more difficult (almost impossible) than normal, it can be used to test the execution of orders at the broker and checking simple trading strategies, practice your trade skills. It is worth to pay attention to the size of the bonus. If it is sufficient only for the opening of only one position of a minimum lot, it is unlikely that it will be possible to make a practical use of it.

How to increase the turnover?

If bonus triggering conditions do not require any huge turnover, you can try to increase the turnover. But rationally, without doing nonsense.

We trade manually, as usual, not overstating the risks. On the same account, we put several EA on the background, too, with adequate risk management. And quietly trade. Spent a bonus - good. Didn’t work- doesn’t matter.

This is the most appropriate approach.

Conclusion

It is not necessary to put full bonus usage as the main goal. Oddly enough, but it is not beneficial to any broker company or trader himself. Any trading involves risk, and all bonuses are calculated in such a way that does not even cover the cost of trade. At the same time, the correct use of the bonus may increase trade profitability. If the bonus involves full use of resources, it shouldn’t negatively affect the trading process and can for sometime help you earn a little more.

Take care, Michael

ForexTraderPortal.com