Coming to this interesting post in recent days you may have seen some Forex advertisements like this on most of the Trading Platform out there: Get Up to 5000$s Bonus Deposit Now, and some like Get 30% Bonus on your Deposit, recently some brokers offering 100% bonus on deposits. Now you came to a thought and want to ask me why they are offering this much % extra bonus on our deposits.? What benefits to them for giving the bonus amount like this. Coming to the explanation am not saying this is a scam like offering this shit bonuses.
Now our in-depth question is Why are they offering bonuses to trade?
The reasons for offering bonuses are listed below
- Forex is the currency trading platform that is growing rapidly day by day.
- Many brokers are facing competition with the opponent broker.
- They are attracting new customers by offering high bonuses.
- If you notice particularly that most of the Forex brokers are giving a bonus on the initial deposits only.
- Some brokers are offering a bonus on each and every deposit that the trader makes to his trading account.
- In this way, the competition between the Brokers is increasing and striking the peaks.
- Many of the Brokers are offering bonuses like 10%,30%,50%, and recently Ava Fx Broker launched a 100% bonus on the initial deposit made by the trader to his trading account.
These are some of the main reasons which lead to the offering of more bonuses on the deposits.
- Hidden reason offering the Bonuses of Forex Brokers to their Traders…..!?
- The main important points of offering bonuses on the deposits are stated below. Here is an affiliate of the Forex Broker to many Forex Brokers am revealing the hidden secret behind this.
- All you should know that there are some different types of Forex Brokers are there.
ECN Broker Type Retail Forex Broker
The major difference between these two types of trading accounts is in the ECN type broker don’t trade against the trader but a retail broker trade against the trader. Some complaints like “My balance down to Zero.” this is the most raised complaint in the Forex Trading and broker complaints. This means the Retail brokers do some running activities like trading against the trader, putting limits on our account and asking for proofs to submit again, rejecting our documents after the deposit, and delay in processing the payment request/withdrawal these are the main drawbacks in retails broker type. Some retail Forex brokers even never answer our questions and never reply to us and just stole our deposited money. Even though these traders get profits from Spreads they go greedy and that results in their broker as a Scam-listed broker.
Coming to the ECN type broker here the leverage is a crazy option. For a single Pip, the value will be like 5-8$ means if you get 5 Pips of profit and remove commission(Spread) from that. Many large investing traders prefer ECN accounts and ECN type of brokers to take care of their deposited money in the Forex Trading. Recently some Forex Brokers are offering ECN type of accounts though they are Retail licensed Brokers. And traders are blindly investing the money by opening ECN type of account but they don’t realize they are invested in Retail Trading type Broker.
Another hidden thing in this is brokers offering high bonuses may not have the Regulation under any country they try to attract the customers and will eat the innocent trader’s money by scamming them.
Forex Scams are increasing day by day as the investors to this trading are growing rapidly. So even they are offering a high amount of bonus check their statistics and forum complaints on that broker and check for what type of proof of documents they are asking to submit. And check everything before investing. Because you are the responsible person for the money you deposited in your trading account.