Forex trading is not a game of luck as it requires thoughtful market analysis. Still, some brokers use incentives you could find in an online casino. No deposit bonuses are, essentially, free cash you may spend in the currency market.
Should you trust such offers?
Every beginner has an opportunity to practice for free via a demo account. The difference between a demo and a no deposit bonus is simple -the latter gives you access to live to trade immediately. Even some of the biggest brands offer free bonuses from time to time. Thus, no deposit bonus in forex trading is simply a way to get started in the real market with the broker’s capital.
How does This work?
Typically, the bonus only requires registration. Once your account is ready, the amount (for example, $30) will be credited to the balance, so you can start trading right away. Ideally, you should already have experience using the software and managing trades. Venturing out into the live market without preparation is a recipe for disaster.
Naturally, you may decide that this offer is too risky and opt for a demo account instead. On the other hand, if you want to switch brokers after trading for a while, this is a very attractive offer. It comes with specific conditions, so pay attention to the fine print.
To sum up, no deposit bonuses have pros and cons. You get free money from the broker to use for real trades. At the same time, it is crucial to be cautious and well-prepared.
Checking the Broker
Forex neophytes should be careful. The gift must come from a reliable provider with a solid track record and a stellar reputation. Today, plenty of companies use the same generic software, such as MetaTrader 4, so this is not a comparison criterion.
Here is how to vet a company’s background.
Every provider of trading services must have a license to work in their chosen location. It may come from different organizations around the world. Commonly, you may see licenses from the CySeC in Cyprus, the FCA in the United Kingdom, the FSCA in South Africa, etc. This information is usually found on the official website at the bottom.
Consider user feedback and professional reviews. Pay close attention to any recurring issues highlighted in the comments. Look for a balanced mix of four and five-star reviews, but remember that even the best brands are criticized sometimes. Consider Forex broker comparison platforms with expert opinions.
Read More: Is Forex Trading Legal in India?
Final Tip: Check Markets & Instruments
Some companies have a focus on CFDs, others specialize in currency trades, and some brands have the broadest offerings. Make sure the available markets and instruments suit your goals. In the future, you will need to diversify your portfolio to reduce the risks. Look beyond the immediate benefits of no deposit bonuses.