The term "no deposit" refers to the fact that you can open a Forex no deposit account to benefit from a free money trading bonus. The purpose of this is to give the broker a promotional edge and attract new traders. A no deposit bonus means that you can trade on the platform before you decide whether or not to make a real money deposit.
Many Forex brokers are offering this incentive. The amounts they offer will vary, and it will take time to search for the one that offers what you are looking for. In addition to the free bonus it is useful to find one that offers a demo account. This way you get lots of chance to practice before you risk your own money.
When you open a Forex account, you should have a clear trading strategy. You might find that those that offer Forex bonuses don't provide a demo account and vice versa. If you can find one that provides both and ticks all of your other boxes then this gives you a good start. So how should you use your Forex no deposit bonus?
1.1 Testing the Platform
While you may be able to sign up for a free demo account and should if, given the opportunity, there is nothing like trading on the live platform, making real trades. The no deposit Forex bonus allows you to try out the desktop and mobile versions of the site before you deposit your funds.
2.1 Comparing Brokers
You may be stuck between two brokers and struggling to decide which one is for you. If they both offer a no deposit bonus, you can try them both to see which one you prefer. That way you haven't had to spend your money to find out which best suits your requirements.
3.1 Try Something New
If you have experience in trading the USD/GBP for example but not the USD/AUD, then you may want to use your free bonus to try this new currency pair. You may be used to investing in the more major pairs and fancy trying a pair where you might get a greater spread. Tropical pairs, as they are called, are often very profitable.
4.1 Practise Early Trades
While a no deposit bonus won't be huge, it does allow you to practise on those first few trades and get any early mistakes out of the way before you risk your own money. This way, when you eventually start investing with your real money, you have more of an idea of what you are doing.
You can use the demo account to get used to trading on the platform and then you can use the bonus to make live trades. This is all before you even consider touching your own money. The two complement each other to provide you with the best trading experience.
You must spend your time reviewing the various brokers so if you don't have time to trawl through the best Forex brokers, fear not! Search for experienced team in Forex trading. They know what to look for, what makes a good broker and what you need.
You must learn:
· Why Forex brokers offer no deposit bonuses
· The pros and cons of using this type of bonus
· Tips for using your sign up incentive well
Forex bonuses are probably the most significant promotion that a Forex broker offers. Along with this form of incentive you will also see match deposits, demo accounts, refer a friend and several other incentives. They are all designed to give the broker the edge and make them stand out from all the other companies. It can be a very competitive environment with everyone trying to corner the market and be the best.
This is good news for you as a trader. It means that there is plenty of choices when you are searching for the perfect broker. If you can find a broker that offers a Forex no deposit bonus to use on your live account, a demo account, and one that has a mobile app and a website that provides plenty of education tools then you have pretty much everything you need. Of course you must make sure that they are trustworthy and reliable as well.