Most Forex online trading platforms attract new traders with bonus offers. Of course, the most well-known types are deposit bonuses of various forms and no deposit ones. Each option has its advantages and disadvantages, and the choice largely depends on the trader’s goals and level of experience.
What Is a Deposit Bonus?
This is a reward you get immediately after depositing money into your trading account. Typically, it is a percentage of the deposit, and it can greatly help with your trading capital. Advantages of this bonus type include:
- Larger trading capital: The most obvious advantage is that you get more funds available for trading. Now, you can either open larger positions or trade more frequently.
- Suitable for experienced traders: This bonus type is influenced by the deposit size, and experienced traders who are able to make larger deposits will benefit more from it.
- Long-term potential: With larger capital, you can afford to hold trades for longer, allowing you to maximize potential profits when the market is in that favorable condition.
What Is a No Deposit Bonus?
This is a type of bonus given to you without requiring any personal investments. The amount is small, typically ranging from $10 to $50, but it provides the opportunity for a beginner to trade without any risk of losses. Here are some of the benefits of this type of bonus:
- Risk-free start: The fact that one gets to start trading without spending a single cent of their money makes it very appealing for new traders and those testing a new platform.
- Trial before commitment: With this bonus, a trader will have an idea about the real market conditions and whether or not the broker is right for them.
- No financial obligations: Without being obligated to deposit any funds into your account, the pressure and financial risks are lower.
Which One to Choose?
Suppose you are an experienced trader already with a solid trading strategy. In that case, the deposit bonus may grant you that little more capital you will need to enter bigger positions, potentially increasing your profits.
If you are a newbie to Forex or you simply want to try a new broker in a risk-free manner, a no-deposit bonus is a far safer and less stressful option. Both bonuses have their merits, although each can benefit different types of traders. So, when choosing which one is better for you, consider your trading style, risk tolerance, and financial situation.