How to Find the Best Forex Bonus When You Live in South Africa?
More than $4 trillion is traded on the forex markets every day. It is the largest financial market on earth. The market is available 24 hours a day, five days a week. As smartphones and tablets have become more abundant brokers have adapted to the digital age by going online and today trading on the forex markets is as easy as pushing a button.
As more people find an interest in trading on global markets many choose to trade in forex. This has created competition amongst forex brokers, many of whom now offer bonuses to new and existing customers as an incentive to use their services.
Trading on the forex markets is not for the faint hearted. Millions are earned and lost on the markets every day. It all boils down to doing your research and ensuring that you have a plan and a system and that you choose the right forex broker.
| Best 3 Forex Bonuses for 2024 | |||||||
|---|---|---|---|---|---|---|---|
| FX Brokers | Ranking | License | Assets | MT4 | MT5 | Bonus | Website |
| AVAtrade | FSCA, ASIC, FSC, FFA | 1000+ | Yes | Yes | $10,000 | Trade Now | |
| IronFX | FSCA, CySEC, FCA, ASIC | 200+ | Yes | Yes | $4,000 | Trade Now | |
| Exness | FCA, CySEC, FSA, FSC, CBCS | 250+ | Yes | Yes | N/A | Trade Now | |
If you’ve decided to opt for a forex bonus should choose one that matches your trading patterns. There are some unscrupulous brokers in the financial markets which is why you should never consider the size of the forex bonus in isolation. First and foremost, you must ensure that your money is in safe hands.
We’ve done the research for you and found the best ways that you can safeguard your money and ensure that you have fun while earning profits on the forex markets using the best forex bonuses on the markets today.
Trading Safely
When you trade in forex you buy one currency and sell another at the same time. Only forex brokers may trade pairs of currencies on the markets. So, anyone looking to try their hand at forex trading will have to find themselves a good broker.
Forex trading appeals to people as an investment option, as the barriers to entry are low. You require relatively little money to trade on the markets and they operate around the clock. You can trade from anywhere around the world and you can choose the currencies that you’d like to trade.
Those planning on going into the forex markets should understand, however, that forex trading is risky and there is a possibility that you will lose your hard-earned cash. Never bow to the temptation to trade with money that you can’t afford to lose.
Before you start trading you should commit to treating your trading as a business proposition. You should have a strategy and a systematic approach to trade. Do your research and learn from the most successful traders out there. Don’t allow emotion to drive any of your trades.
Monitor your wins and losses and keep records so that you can use them to as guidelines for future trades. Keeping a journal of your approaches and the results is a fine way to learn from your successes and failures.
How to Find the Right Broker
There are thousands of forex brokers online, not all of them are reputable. It is, of course, essential that you choose the right broker before you hand your hard-earned cash over. So, what qualities should you look for in an online forex broker?
Security
Check your local regulatory authority to ensure that broker is legitimate. Check for online recommendations and reviews. The regulatory bodies create rules that will protect you against rogue brokers. Security is the most important criteria for selecting a broker. Sadly, the financial world is full of charlatans, looking for an opportunity to divest you of your funds.
Transaction Costs
Forex trades, like everything else, will cost you. Brokers charge either a commission or a spread. The spread is the difference between the bid and ask price of a currency pair. The spread differs according to the currency pairs traded. Popular pairs such as USD/EUR will have a much tighter spread than pairs that are not as heavily traded. The spread is measured in pips which is a tiny fraction 1% of the value of the currency pair.
Deposits and Withdrawals
Choose a forex broker that makes it easy for you to deposit and withdraw funds as you require them. You keep funds in your account so the broker can trade on your behalf. You should be allowed to withdraw your profits quickly and easily whenever you want them. Never choose a forex bonus where withdrawal limitations exist. Find out what your broker’s funding and withdrawal policies are before you sign up.
Trading Platform
All of your transactions will take place on the trading platform. This is the gateway to your currency trades. It must be user friendly and quick to download. Check the availability and speed of the website by visiting it during peak hours.
It is preferable that the platform is smartphone friendly. Make sure that it has a simple interface. Complications can make trading costly. The broker’s platform should contain all of the information that you may require. Research tools are important and they should, at the very least, include forex movement graphics and charts.
The best broker platforms continue to evolve to simplify the trade experience. They are easy to navigate, offering an increasing number of features and tools, enhancing the trade experience.
Customer Service Support
Make sure that you can get assistance when you really need it. Choose a broker who is contactable. They must be capable of dealing with any technical support and account problems that may come up.
Order Execution
The speed of order execution is an important consideration in a market where the prices are volatile. In the forex markets minutes can be the difference between making a profit or a loss.
Initial Deposit
Some brokers require a much higher deposit than others, so it’ll pay to check what initial outlay you broker requires.
Forex Bonuses - All Types Overview
Forex bonuses are nothing more than a redistribution of the collected commission or spread. Much as airlines will reward you for flights taken, some brokers are happy to give traders a bonus to keep them trading through their brokerage.
Some forex bonuses really could work for you but many more have convoluted terms and conditions that you may find difficult to understand. It is essential that you carefully consider the terms and conditions before you commit yourself to a forex bonus.
There are several different forex bonuses. We’ve discussed a few of them below:
No Deposit Forex Bonus
Newcomers to the forex trading market may find this product useful. You just register and claim your bonus which can range from $5 to $100. You can use the money to trade without incurring any risk yourself.
Many no deposit bonuses set restrictions on when you can withdraw the funds from your account. You cannot draw the bonus straight away and the broker may even place limitations on when you can withdraw your own profits.
Forex Welcome Bonus
Used to attract newcomers to the market. The welcome bonus may have a deposit or no deposit requirement. The welcome bonus is often called a deposit bonus, since many of them reward you with a percentage of the bonus.
You can’t withdraw your bonus, but you can use it to trade, getting you off to a good start. Your broker will restrict you from withdrawing funds from your account until you have reached a specified level of trade. If they didn’t place restrictions on the use of the bonus, they would run at a loss.
The welcome bonus gives new traders a nice leg up, but if you don’t do enough trade you might find that you never get beyond the required trade turnover to collect the bonus. So, you should take this into account when deciding which bonus best suits your needs.
Forex Rebate Bonus
If you opt for a forex rebate bonus, you’ll receive cashback on the trades you make. There are even rebate bonuses that apply only to losses. If this is the case, when you make a loss, you’ll get a percentage of the trade value back in the form of a bonus. Make sure that you understand the terms and conditions of the forex rebate bonus before you sign up for it, as they can differ substantially from one broker to another.
Forex Deposit Bonus
These bonuses are typically calculated as a percentage of the deposit. So, if the deposit bonus is 15% and you make a deposit of $1000, your bonus is $150. The offer is open to both new and existing customers, but many novice traders find the deposit bonus particularly useful.
Forex Loyalty Bonus
Some brokers run loyalty programs under which traders earn loyalty points which you may then use to retrieve cash or rewards such as smartphones, or other forex trading perks. Most newcomers enjoy the rewards bonuses. The more experienced traders typically don’t sign up.
Forex Reload Bonus
This bonus, intended for existing customers, offers a bonus for making a new deposit. These bonuses are often quite generous, so these offer some of the best deals in the forex bonus arena.
Forex VIP Bonus
This bonus is on offer to people who open a VIP account when they start to trade. A VIP account often comes with a number of perks.
Forex Trading Contests
Contests are designed for existing clients. Brokers run trading contests so that clients can compete against one another. The broker will set up rules and regulations and a period over which the contest will run. In the end of the term the trader who makes the biggest profit will win the prize and get the bonus.
Understand the Terms and Conditions
It should come as no surprise that these bonuses come with terms and conditions. The broker offers the bonuses with the aim of making money. They contain restrictions on how and when you can use the funds. When you accept this bonus, you may have to commit to spending a fair amount of money.
The sheer number of bonuses on offer can make it difficult to choose. Front of mind when choosing should be your trading conduct. There are three ways to ensure that you get the best deal when trading. They’re listed below:
- Make sure that the broker that you choose is trustworthy – Check that the broker is registered with your local regulatory authority. Signing up with a broker just because they offer a good bonus is not a good idea. Make sure that your funds are in safe hands by thoroughly researching the forex broker before handing any money over.
- Understand the broker terms and conditions before you sign up – it pays to understand the withdrawal requirements up front. You’ll usually have to make a certain number of trades before you can withdraw your funds. You should also understand fully what you will pay for the services rendered.
- Choose the bonus that matches your trading needs – some bonuses are geared to new traders and others for existing. There is little point in opting for a bonus that you are unlikely to earn because you have failed to reach the target turnover. Matching the deal with your trading conduct will ensure that you get the best bang for your buck.
Mitigating the Risk
Trading in forex can be risky. There are many sad tales of traders losing vast sums of money. If you’re new to trading there is merit in downloading a demo forex tool. A demo tool will allow you to practice on real currency markets using virtual money. Many of the forex brokers will offer free demo accounts to cautious would-be traders.
While you learn the ropes using the demo model, use the time to research the markets and understand the trends and the underlying factors that affect currency price movements.
When you’re comfortable with the markets you can then move on to the real thing. This way you won’t risk your money whilst you’re still learning the ropes. Find a forex broker with a generous bonus offer and you’ll be well set to make a profit from the get go.