Find the best forex bonus with thousands of forex brokers active in the online trading space, the industry has become somewhat oversaturated in recent years. This has subsequently forced platforms to become more and more competitive – with the view of standing out from the crowd. At the forefront of this is the offering of forex bonuses.
In a nutshell, forex brokers will offer a sign-up bonus to those that are yet to open an account. This normally comes as a matched deposit bonus, meaning that your initial deposit will be boosted by a certain percentage. In other cases, you might be offered a no deposit bonus.
If you are keen to find out what forex bonuses are, how they work, and what you need to do to claim one – be sure to read our guide on The 10 Best Forex Bonuses for Traders in 2022.
Note: Forex bonus funds are extremely difficult to turn into real-world cash. The bonus will always come with a minimum trade amount which you will need to meet before a cashout is permitted.
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How Does a Forex Bonus Work?
So now that you know what a forex bonus is, let’s take a look at a couple of real-world examples of how a bonus might work in practice.
✔️ Deposit Bonus
A deposit bonus is the most popular bonus type offered by online forex brokers. As we briefly noted earlier, the broker will match your deposit by a certain percentage – and the bonus will have a maximum amount attached to it.
- You claim a 100% matched deposit bonus with a forex broker.
- The forex broker permits a maximum bonus of £1,000, which is what you decide to deposit.
- Upon making your deposit, the broker then credits your account with an additional £1,000.
- Your starting balance is £2,000 – even though you only funded your account with £1,000.
As soon as the bonus is credited – which is usually instant, you can begin trading straight away.
✔️ No Deposit Bonus
As the name suggests, a no deposit bonus awards you a bonus without requiring you to make a deposit. These bonuses are highly sought after – not least because the trader can obtain the bonus without risking any funds. With that said, no deposit bonuses are typically much smaller in comparison to a matched bonus.
- You claim a £20 no deposit bonus with a new UK broker.
- You open an account and then verify your identity – which is required to prevent bonus abuse.
- Once your ID has been confirmed, the forex trading site will then credit your account with the £20 no deposit bonus.
- You can then start trading with your bonus funds straightaway.
Terms and Conditions of a Forex Bonus
Although the above examples illustrate just how lucrative forex bonuses can be, it is not simply a case of getting the bonus funds and then cashing out. On the contrary, you need to be made aware of a number of terms and conditions that brokers typically install.
🥇 Minimum Trade Amount to Withdraw
The biggest thing standing in the way of you being able to withdraw your forex bonus is that of the trade minimum. Let’s say that you deposit £500 and you receive a £250 bonus – taking your starting balance to £750. If you were able to withdraw that £750 straight out of the forex broker and into your bank account – this would not be a very good business model for the platform. On the contrary, the platform wants you to use the bonus funds to trade.
As such, your bonus funds are effectively frozen until you meet certain conditions. In the vast majority of cases, you will have parts of your bonus balance released as withdrawable cash when you meet a specified trade size. For example, the broker might release £1 from your bonus for every £10,000 that you trade.
This means that:
- You have got £250 in bonus funds.
- The broker will release £1 for every £10,000 traded.
- £10,000 x £250 = £2.5 million.
- As such, you would need to trade a total of £2.5 million to release the full £250 and thus – withdraw the bonus out in its entirety.
On the one hand, a minimum trade amount of £2.5 million is nothing short of astronomical – especially when you consider that the bonus is only £250. With that said, you would stand a much better chance of meeting your bonus targets if you:
- Engage in day trading that places dozens of trades per day
- Often apply leverage to your trades
- Your trade sizes are typically large
🥇 Time Limit
If the above terms were not difficult enough, you also need to factor in the time limits that forex bonuses typically come with. This is yet another tactic employed by platforms to make the bonus cashout process even more challenging. In most cases, brokers will give you 30 days to use the bonus funds before they are revoked.
This means that any bonus funds left in your account after the expiry date will be removed. If the forex bonus comes with a time limit of fewer than 30 days, you should probably avoid it.
🥇 Eligible Pairs
In some cases, the forex bonus might stipulate restrictions on certain currency pairs. While majors and minors are normally fine to use your bonus funds on, exotic pairs might not be covered. As such, make sure you check the terms and conditions to ensure your preferred forex pair is permitted.
🥇 Supported Nationalities
Some forex brokers will only offer bonuses to certain nationalities. This is why you should always use the domain that matches your country of residence – as brokers typically have multiple websites for different regions.
🥇 Minimum Deposit
Most forex bonuses will come with a minimum deposit amount. Promotions usually only state the maximum bonus amount permitted, so you will need to dig through the terms and conditions to find it.
Best Forex Bonuses in 2022 – The Ultimate List
So now that you are armed with the required knowledge to maximize your bonus hunting endeavours, we are now going to list our top 10 forex bonuses of 2022.
1. AVATrade – 2 x $200 Forex Welcome Bonuses (Bonus Permission Is Approved By Regulation)
The team at AVATrade are now offering a huge 20% forex bonus of up to $10,000. This means that you will need to deposit $50,000 to get the maximum bonus allocation. Take note, you will need to deposit a minimum of $100 to get the bonus, and your account needs to be verified before the funds are credited. In terms of withdrawing the bonus out, you will get $1 for every 0.1 lot that you trade.
- 20% welcome bonus of up to $10,000
- Minimum deposit $100
- Verify your account before the bonus is credited
2. The Moneta Markets Deposit Bonus
Want to boost your deposit with 50% extra? When you fund your Moneta Markets trading account with $500 or more, we will give you a 50% bonus! Whether you are an existing Moneta Markets account holder or a new client, make a deposit then opt-in using the form below to claim your bonus today!
- Minimum deposit is $250
- Opt in using the form to claim your 50% deposit bonus
- Log in to the Moneta Markets platform, and start trading!
3. Markets.com – £25 No Deposit Forex Bonus
Markets.com is a major player in the UK forex space. With dozens of currency pairs split across the majors, minors, and exotics - its trading arena is highly extenssive. You will get a £25 no deposit bonus just for opening an account. The bonus is for new customers only, and there is no time limit to worry about.
- £25 no deposit bonus
- No time limit to use the bonus funds
- New customers only
4. Interactive Brokers – $200 Referral Forex Bonus
If you have got family or friends who have interest in doing a bit online forex trading, why not consider utilizing the Interactive Brokers referral program? For every new customer you get to open an account, you will get $200.
- $200 referral bonus
- Get paid for each new customer you refer
- Bonus paid once the new customer trades a certain amount
5. CMC Markets – 2 x $200 Forex Welcome Bonuses
UK broker CMC Markets is now offering a rather juicy $200 welcome bonus - twice. Once you deposit your first $200, the broker will match this with an additional $200 - taking your starting balance ot $400. You will then need to trade $1 million worth of forex to withdraw the bonus funds out. Once hit $2 million worth of trades, CMC Markets will give you an additional $200.
- $200 welcome bonus- twice
- First deposit of $200 is matched like-for-like
- Withdraw the bonus funds when $1 milion trade requirement is hit
6. HYCM – 10% Deposit Bonus upto $5,000
HYCM is a hugely popular onilne trading platform that offers all new customers a 10% deposit bonus. The bonus amount is capped at $5,000 - which means that you will need to deposit $50,000 to get the maximum. You will need to trade a whopping 30 standard lots to get $1,000 in bonus funds out of the broker, so do bare this in mind.
- Deposit $50,000 to get the full bonus amount
- Trade 30 standard lots to withdraw $1,000 in bonus funds
7. Tickmill – $30 Sign-Up Forex Bonus
Global forex broker Tickmill is now offering new customers a $30 no deposit bonus. In order to prevent bonus abuse, you will need to verify your account before the funds are credited. The good news is that Tickmill allows you to withdraw any profits made from your $30 welcome offer.
- $30 no deposit bonus
- 100% risk-free - no deposit required
- Verify your account before the bonus is credited
8. TemplerFX – $30 No Deposit Bonus
In a similar nature to Tickmill, TemplerFX is also offering a $30 no deposit bonus. All of you need to do to get the bonus is open an account and verify your identity. You will need to trade a minimum of 5 standard lots to be able to withdraw the bonus, plus any applicable profits.
- $30 no deposit bonus
- Not required to fund your account to get the bonus
- Pass a KYC process before getting the bonus
If you have read our guide all of the way through, you should now have a firm understanding of what a forex bonus is and how they work. You will also know that brokers typically offer either a matched deposit bonus or a no deposit bonus. Either way, you will need to ensure that you are fully aware of the bonus’s terms and conditions. Crucially, this centers on the amount that you will be required to trade before a withdrawal can be made. In most cases, turning a forex bonus into withdrawable cash is going to be extremely difficult.
For example, brokers typically require you to trade $10,000 worth of currency just to release $1 in bonus funds. When you start multiplying these figures by a three-figure bonus, you are very quickly in the million-pound terrorism. Ultimately, it might not make sense to claim a forex bonus with the view of making money. Instead, you can use bonuses to practice and improve your trading skills in a real-world environment.
What is a no deposit forex bonus?
As the name suggests, a no deposit forex bonus allows you to claim a bonus without depositing any funds. Instead, you merely need to open an account and verify your identity to get the bonus.
What is a matched deposit forex bonus?
Unlike a no deposit bonus, a matched deposit bonus will require you to make a deposit. The bonus amount will be based on a percentage of the amount you deposit. For example, a 100% matched bonus of £200 would give you a starting balance of £400, even though you only deposited £200.
How do I withdraw a forex bonus?
You will not be able to withdraw a forex bonus until you meet the minimum trade requirements found in the terms and conditions. This averages around $1 of released bonus funds for every $10,000 that you trade.
How do I meet the minimum trade requirements on a forex bonus?
Every time you open and close a forex position, the size of the trade will be reduced from your target. For example, if the trade size is £5,000 when you buy and sell the pair, you would have knocked off £10,000 from the minimum trade requirement.
Should I use leverage when targetting a forex bonus?
On the one hand, applying leverage will amplify the size of your forex trade and thus - increase the amount that you are able to wipe from your bonus target requirement. However, you should never apply leverage simply for the purpose of chasing a forex bonus.
Can I use my forex bonus on any currency pair?
In most cases, forex brokers allow you to use your bonus funds on any currency pair. However, some brokers might restrict you to just majors and minors.
Do I need to verify my identity to get a forex bonus?
If claiming a no deposit bonus, you will need to verify your identity before the bonus funds are credited. This is to prevent bonus abuse.