Forex No Deposit Bonuses

Forex No Deposit Bonuses Explained

Prior to 2007, the concept of issuing bonuses to traders to trade forex was non-existent. But as the number of brokers mushroomed and the market place became a lot more competitive, brokers had to discover new ways of getting clients at reduced marketing costs. That was when we began to see bonuses being issued to traders. These bonuses required that traders initially fund their accounts with certain amounts in order to benefit from the bonus offer.

However, we have begun to see a shifting trend where brokers now issue bonuses to traders without necessarily requiring them to deposit funds in their trading accounts. These “no-deposit” forex account bonuses are becoming increasingly popular and being deployed by several brokers.

How does the no-deposit bonus facility work? Usually, the trader is required to participate in forex contests. The call is issued out on forex online forums, Google ads and other social media networks for traders to participate in the forex demo trading contest organized by the broker issuing the bonus. The traders are sent a link with which to open a demo account with the broker. When the contest is done, the winners are asked to open live accounts and the proceeds of their winnings paid into their new live accounts as trading capital. Traders would then have to generate a certain amount of spread commission in order to be able to withdraw from that account. At other times, the trader may be asked to deposit his own funds at a much later date in order to be able to withdraw his no-deposit bonus.

Whatever the case, the no-deposit forex account bonus is a very good way for a trader who is cash-strapped to raise emergency funds for trading. Not to mention that this can be an avenue for free money or gift items, especially as some forex brokers are now spicing up the game with offers of gift items such as smartphones and accessories. Let us now take a look at some brokers who offer no-deposit forex bonuses.