Foreign exchange or widely known as “forex” plays a substantial role in the economic development of one country based on its monetary value in the market against other currencies. This means that the stronger the demand for a certain currency, the more progressive the country is; but the weaker the demand for a certain country’s currency, the more it goes downhill.
Therefore, we can say that the foreign exchange status can either make or break a country’s position in the competitive world of trade and investments.
Engaging in FX trading is one of the reliable means to turn your hard-earned money into investments based on your analysis regarding whether the currency you’re betting on will get stronger or if you should sell what you think is going to be a weaker currency.
Let us say you placed a €10,000 bet that the Euros will get stronger than the dollars, which is at $1.2345 per Euro. If it closes at a $1.2432 value, then you will earn an extra $87 without breaking a sweat.
From this, it is a better choice to maximize your potentials in doubling your money by investing in the foreign exchange market.
Once you are settled in engaging with this buy-and-sell system of forex, it will be the crucial time to choose to whom, where, when and how much money you should entrust to others.
This is where brokers and traders come in. Earning a customer’s elusive “yes” out of the pool of potential clients is indeed a huge deal for a broker.
Considering all of these factors– the situation, target customers, and time frame– brokers came up with different types of forex promotions, which can come in the forms of forex deposit bonus and forex trading bonus. These aim to attract the attention of prospective customers and earn their trust.
Foreign exchange deposit and trading bonuses come in various forms such as no deposit, redeemable, non-redeemable, and technology:
- A no-deposit bonus is a double-edged form of promotion as it can easily woo multiple investors but can also accumulate negative feedback from Internet users. For instance, brokers offer you $50 upon registering, but you can withdraw the “welcome gift” only upon reaching the required trade volume. Due to this, other brokers use the same method but sometimes change the agreement in the long run, causing people to complain about their unfortunate experience.
- Redeemable bonuses, meanwhile, are a generous approach like no deposit bonus. Here, the trader gives out a welcome bonus, redeemable upon reaching the target trading volume; the difference is that it also provides additional bonus when the volume is met.
- Non-redeemable bonuses are commonly practiced in Asia where traders grant 100% or above bonuses to boost leverage; however, these cannot be redeemed.
- The technology bonus is the appealing approach among young consumers because instead of cash, it offers the latest gadgets such as iPads, smartphones, and the like. The bonus item is usually given upon reaching the target volume.
- Guaranteed stop-loss is a safe yet risky approach, as it guarantees the customer the protection on unexpected drops in the market. The control is based on the amount specified by the customer, but the downside happens once the customer sets a lower loss than the actual rate. As such, you should be careful when choosing this method.
From the said types of promotions, it is natural for a customer to be sceptical and cautious in everything he or she engages in. He or she should be comfortable with the chosen bonus and should set the terms and conditions clearly with a regulated broker. Don’t listen to smooth talks and lies; instead, let your money do the talking.