What Is A No Deposit Bonus?
The online trading environment is an extremely competitive one with a multitude of forex brokers fighting for the same number of potential clients. To gain a market share as big as possible, brokers are using all kinds of promotions to attract potential clients.
Look For Campaigns
One way to do that is to use a forex no deposit bonus campaign. This kind of promotional campaign is extremely popular among traders as well, not only among forex brokers as it has multiple advantages for both parts.
From a forex broker point of view, the aim is to gain new customers and therefore to increase the commission based revenue from their trading. Even if the trader is not going to continue trading after the bonus forex no deposit is exhausted, the broker will still benefit from the contact info it now has.
Therefore, future marketing campaigns will be aimed to target the trader on new promotions plus a follow-up call is most likely to follow as well.
A typical campaign for such a bonus will claim that registration is needed but without verification, that a real account will be opened, that funds are available for withdrawal, and, moreover, all brokers claim an unparalleled customer support.
Verification Process
While all of the above may be true, there are some things that need to be clarified. Firstly, forex no deposit bonus without verification means that the broker will not ask you for a proof of address and to upload identification documents when the trading account is opened. However, on any possible future withdrawal, identification is needed.
Secondly, funds are indeed available for withdrawal, but this is possible only after a specific trading volume is being reached. In other words, the trader must trade multiple positions (the actual volume is different from broker to broker and depends largely on the size of the forex no deposit bonus that is offered in the promotional campaign) before being allowed to withdraw any potential funds. Usually, this trading volume needed to clear any bonus is set at a higher level.
Last but not least, the “unparalleled customer support” should be something that every broker is offering giving the competitiveness of the industry mentioned above. With the current digital revolution and technology, offering solid customer support via online application is quite easy and simply to implement, and, if anything, should not be something that a broker should brag about, but something that should come as default.
Still, from a broker’s perspective, promotional campaigns can be linked together in such a way that, for example, you’ll have a forex no deposit bonus 2017 and further in time with larger amounts being offered to trade based on the previous performances.
Best Bonuses
This does not mean that forex bonus 2017 no deposit should be campaigned at the start of 2016 for example. But, starting with the second half of 2016, people will start looking for the best no deposit forex bonus available in the period ahead. Brokers are always presenting future potential campaigns either at trade shows or via email marketing or call centers.
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Coming to a trader’s point of view, the most important aspect is that this is the best risk-free Forex trading one can get. Every other aspect is secondary, no matter what no deposit bonus forex brokers say.
Free Money
Accepting such a deposit it may not be the best idea for beginners in trading as the risk involved is the same even if the bonus is basically offered for free by the broker. The reason for that comes from the fact that the actual trading account that is offered is a real one and this means that the trader will always know that it is only a click away from depositing new funds or bigger funds and receiving a deposit bonus to trade bigger.
Because a forex no deposit bonus is typically a small amount, the potential profit to be made is accordingly. Upon succeeding and trading successfully, the risk is that the trader will fund the account with his/her real money now to gain more and to profit more from this forex experience.
Needless to say that almost always this ends up to be the worst decision possible as the new funds will be most likely lost. One can make it in this field only with solid preparation after the actual trading and from this point of view it will be wiser to trade on a demo account before accepting a forex no deposit new challenge.
Clearing A Bonus
There are multiple ways trading can be done, depending on the type of each trader and the style involved. Different trading styles are scalping, scaling, swinging, and even investing, and they are suitable for different trading environments.
Different Trading Sessions
For example, it is well-known the fact that markets spend most of the time in consolidation as corrective waves are more common than impulsive waves, or, in plain English, trends are not that common.
Even trading sessions are different as the most liquid one (meaning the one that prices are supposed to move the most) is the London session followed by the North American one, while the Asian session is characterised by small ranges.
Therefore, one of the best trading practices after accepting one of the many Forex promotions no deposit bonuses is to scalp through small ranges or illiquid sessions. The purpose is to use these small ranges to complete the volume necessary to clear the bonus.
This is easier to be done when the market is ranging rather than when the market is trending as technical indicators like oscillators can be used in finding out overbought and oversold levels.
These levels are useless when strong trends are forming so Asian session, for example, is ideal for clearing a no deposit fx bonus in the shortest period possible.
The other trading methods listed above are not suitable for a no deposit bonus forex as, for example, scaling into a position means to have multiple entries at different levels in order for the average to be the best entry possible. Scaling is very popular among traders with medium term horizon for executing a trade.
It makes sense if one has a bigger account and when the time horizon is not limited. This is usually not the case for traders that accept such a bonus. For the same reason, investing or swing trading is something that is not fit this type of bonus as well as is no way to clear such a bonus trading with these strategies.
Drawdowns
One major drawdown of these bonuses, and not necessarily of the no deposit bonus forex brokers, but of the overall industry is that trading is advertised as being so easy and profits can be made in such a simple way that human nature is attracted to it.
People as human beings are always going to be attracted by the possibility of gaining an extra buck with as little an effort as possible. I mean, who doesn’t want to earn an extra income on top of the actual job with little or no effort?
Because of that, a forex no deposit bonus offer seems to be the best way to make your entry into the trading arena and as a matter of fact, it is a successful way brokers use to attract new customers.
Terms And Conditions
One of the best possible advices for people that accept any kind of forex bonuses is to make sure they are reading the terms and conditions they agree to prior to opening a trading account. This is worth mentioning as the vast majority of people is simply clicking the “agree” button without taking the necessary time to read those conditions.
Even if the document is a long one, at least important things should be covered, like legal information about the broker, personal data and confidentiality, how deposits, refunds or withdrawals are being made, recording of telephone calls, etc.
This is important because the trading account is real and most of the traders that accept a bonus forex no deposit are ending up funding the trading account with their money eventually.
If that is the case, it is better to know from the start who is going to be your partner in the trading world (a good broker should be viewed as a trader’s partner and not someone who wants only to profit – it should be a win-win situation for both parties) as when it comes to real money, one should be as careful as possible before sending it to another party.
Conditions To Be Met
To sum up, both parties (forex brokers as well as forex traders) take advantage of these kind of bonuses and the most important thing to keep in mind is to make sure as a trader that you understand all conditions one needs to fulfill. After all, if anyone is giving you free money, usually this is done under specific terms and conditions and not just like that.
However, these conditions are typical for the overall forex industry, and it is not something that cannot be accomplished if there’s interest for that.