What Are Deposit & “No Deposit” Bonuses in the Forex Market?

What Are Deposit & "No Deposit" Bonuses in the Forex Market?
Forex brokers often provide incentives to traders in the form of bonuses or other credits. Deposit and “No Deposit” bonuses are two examples of these type of promotions.

Deposit bonus promotions and incentives for FX traders have increased in popularity over the years. With the advent of so called “no deposit” bonus offerings, this terminology can be confusing for those new to online forex & CFD trading. Given our expertise in the world of forex trading, we’ll explain at length how to understand both deposit and “no deposit” bonuses in today’s post.

What is a Deposit Bonus When Trading Forex?

A deposit bonus is simply a credit into the trading account of a forex trader. It’s always important to read the fine print as deposit bonuses often come with certain conditions. For example, the forex broker may require that a certain number of trades are placed within a specific time period to receive the bonus.

How Does a “No Deposit” Bonus Differ from a Deposit Bonus?

A “No Deposit” bonus is quite easy to understand. This is simply a credit given to a new trader after they have filled out an account application. In most cases the client does not yet have to deposit any money to the brokerage account in order to receive the “no deposit” bonus.

The main difference between a bonus to a trading account and a “no deposit” bonus are the conditions involved. A “No Deposit” bonus has no specific trading conditions or time constraint; a new trader must simply apply for an account and upon approval the bonus is credited.

Are Forex Deposit Bonuses Illegal?

In the past years, promotions and incentives such as deposit bonuses have come under scrutiny in certain parts of the globe. In the EU, for example, deposit bonuses are no longer allowed. Many offshore jurisdictions, however, do not prohibit deposit bonuses. Nevertheless, one should always exercise caution and read the terms and conditions before attempting to receive a deposit bonus. If you require guidance in understand a specific promotion, our team can help.

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