​8 things you need to know about deposit bonus

Dear Traders,

I think you'll agree that most Forex, commodity and CFD traders know the basic facts about trading bonuses.

Traders are generally familiar with deposit bonus advantages too.

For example:

1. having a deposit bonus can increase a trader's total margin
2. typically the bonus is based on a fixed percentage of a trader's deposit
3. unlocking bonuses requires hitting volume targets within time limitations.

But what about the lesser known facts.

What don't we generally hear about and can it hurt your chances of achieving the bonus?

Read on to learn:

...three hidden reasons why deposit bonuses are more valuable than you expect…

...and five angles you need to consider before starting to trade with a deposit bonus.

Bonus slider for simple decision

A slider is an online tool used to remove any doubt about the value of your bonus.

For example, the Admiral Markets bonus slider shows your deposit, the bonus and and total that changes according to the deposit you choose.

It's also simple to use and read, which makes it a perfect tool for first-time bonus hunters.

Value in extra margin

Most traders only focus on the value of the Forex deposit bonus.

But the credit bonus provides additional free margin and increases the amount of funds available for trading.

In other words, the extension of the trading capital (an increase of the margin level) serves as an extra cushion to protect against more rapid account drawdown.

For instance, the margin works well,for opening new positions and maintaining margin requirements for such positions noting:

• the bonus is displayed in the MetaTrader platform' credit field; and
• cannot be used to cover trading losses).

Not all bonuses are for new clients

Many promotions focus on new traders, but not all.

For example, Admiral Markets also rewards loyal traders by extending the Forex deposit bonus to both existing and new traders.

Check how many instruments you can bonus trade.

Checking details is important when considering a Forex deposit bonus.

Chief among these, is ensuring that you are able to use a wide range of financial instruments when trading with your bonus.

Some traders claim a wide range of instrument choices generally, but offer a small choice for specific trading with the bonus.

You obviously don't want to choose a broker offering a small instrument range, attached to the bonus offer.

Admiral Markets is a good choice for deposit bonus trading because:

… they offer a wide range of Forex pairs; and

...non-FX instruments like Stock CFDs, commodities and stock indices.

Deposit a sustainable amount

It's always best to add an amount of capital that you can leave on the account without having to withdraw within the deposit period.

Why?

Firstly, bonus conditions are strict.

Generally speaking, once the credit bonus goes into your trading account it:

1. remains linked to this same account; and
2. cannot be withdrawn either partially or in full unless the minimum trading volume requirement is met in its entirety.

But perhaps more importantly:

… having a sustainable deposit amount is simply best practice in Forex trading...

… because you only want to be trading with risk capital.

Know the volume details

Again, the details are important in Forex trading generally.

In the case of deposit bonus offers, it's especially important to understand the part that volume plays in the deal.

Basically, Forex brokers tie certain volume conditions to the bonus that make it non-withdrawable at first.

Here's the deal.

A valid trade is required before the volume is counted towards the total volume calculation.

So make sure you understand under what conditions volume is counted towards the Forex deposit bonus e.g. what constitutes a valid trade.

With Admiral Markets for example, a full round turn trade is available when all three of the following criteria are met:

1. the trade remained open at least 5 minutes 00 seconds
2. the profit or loss in this trade is more than 3 pips
3. the trade was not hedged.

Hedge trades may not count

Be cautious when entering into hedge trades, because it's possible that the volume does not count towards the Forex deposit bonus.

But don't worry.

It's simple to avoid a trade being treated as a hedge trade.

For example, at Admiral Markets a trade is only considered hedged when it conforms to all these points:

1. the reversal position was opened within 15 minutes after opening the initial position
2. the volume variance between the initial and reversal position does not exceed 20%
3. the reversal position is closed within 15 minutes before or after the closing of the initial position.

Time constraints and terms

When hunting for a deposit bonus, it is important to:

1. run a background check on your chosen broker
2. carefully check the Terms & Conditions for any that that apply to ludicrous trading volume requirements or time constraints.

Generally speaking, in order to withdraw the full amount of the bonus to your account, you will need to reach a minimum trading volume within a fixed period of time.

A trader who meets the requirement can keep the Forex deposit bonus for themselves as an extra reward.

Admiral Markets offers traders a full six months to reach their volume targets.

These tips will hopefully support your journey to fulfilling your deposit bonus and here's one more:

…Admiral Markets is currently offering a Forex deposit bonus opportunity to both existing and new traders...

…until the end of May 2016.

Cheers and good trading,

Chris