Are you looking for a forex no deposit bonus? Learn what they are, how they work, and where to find the best forex no deposit bonuses for 2024 in our conclusive guide.
It is a risk-free way to start live Forex trading! Usually, Forex Broker funds money into their client’s account under this promotional offer to make them a real feel of live trading. Some of them allow to withdraw profit without any restriction; many others put some conditions to withdraw profits or bonus itself.
Want to start forex trading without an initial investment? Our guide to forex no deposit bonus is the perfect place to start
Forex no deposit bonuses are a marketing tool that brokers use to onboard new clients, allowing you to feel what it’s like to trade real money rather than on a demo. However, if used correctly, they can be the perfect point for a new trader to start their journey in the world of forex markets.
In this comprehensive guide to forex no deposit bonuses, we’re going to show you what they are, how they work, and where to find them.
What is a Forex No Deposit Bonus?
As we said in the introduction above, a forex no deposit bonus is a free, first deposit that you’re given by your forex broker, allowing you to start trading without risking your own capital.
They’re a unique marketing ploy by forex brokers to encourage new traders to open a trading account. Instead of offering new traders a demo account, they instead deposit credit into a live account that you can use to start experiencing what it’s like to trade immediately.
As forex trading is as much a psychological battle with your mind as it is a battle against the markets, a no deposit bonus allows you to learn how to control your emotions in a live environment.
Even if you’re not a brand new trader, forex no deposit bonus can be used as an incentive to switch brokers. If you’re looking for a new broker, consider accepting a no deposit bonus and making the switch.
While forex no deposit bonus doesn’t require you to fund your account before you start trading live, they often come with a set of terms and conditions. Before accepting a no deposit bonus with any of the forex brokers we’ve highlighted within this guide, it’s imperative that you read these conditions.
Here are some common forex no deposit bonus conditions:
- Have never traded with this broker before.
- Verification is required to receive the bonus.
- Trading limits are required to withdraw any profits.
- The initial forex no deposit bonus is not withdrawable.
New traders sometimes fall into the trap of thinking they can immediately withdraw their no deposit bonus. Unfortunately, this is never the case.
As you can see, however, you are able to withdraw any profits that you make trading on your forex bonus credit, but again there are conditions applied. These can include having to trade a certain amount of lots before you’re able to make a withdrawal but vary between brokers.
Now you understand what forex no deposit bonus is, let’s move on to how they actually work.
How Do I get a Forex No Deposit Bonus?
As you may have guessed by the name, a forex no deposit bonus requires absolutely zero up-front investment on your behalf to start trading on a live account.
How to get a forex no deposit bonus:
- Choose a broker from our fore no deposit bonus table.
- Open a live account by filling in the registration form.
- Verify your account by providing the requested proof of identity documents.
- Start trading on a live account risk-free.
As you can see, the first step requires you to choose a broker and while you may find unregulated forex brokers offering no deposit bonuses without any form of verification, we’d encourage you to be skeptical of these types of offers. By choosing to open a live account with a regulated broker, you can be assured that your forex no deposit bonus is not a scam.
Fill in the required fields to open a live account on the broker’s live account registration page. Remember, forex no deposit bonuses are not demo credit, but in fact real money. This means you’re opening a live trading account with your broker, not a demo so ensure you’re filling out the correct form.
As you’re opening a live account, regulated brokers do however require you to follow the regular verification, KYC, and AML procedures required by law. Don’t be put off by this; these regulations are there to protect you by ensuring the broker is legitimate.
Once the broker has fully verified your live account, you’ll find the forex no deposit bonus funds ready to go. You’re now able to start trading on a live account, without actually making an initial deposit with your new broker.
But the most important question has yet to be answered: What about withdrawals?
Can I Withdraw my Profit From a No Deposit Bonus?
Now comes to the most important section of our conclusive guide to forex no deposit bonuses – Discussing the process around withdrawing your trading profit.
As we mentioned above when talking about how to get a forex no deposit bonus, you will have to check a few boxes with your broker before you can make a withdrawal. Not only the forex no deposit bonus that you initially received but also any profits you made using the bonus funds to trade.
While every forex broker has a different set of requirements that you must reach in order to withdraw your profits, here are the most common:
- Reach the required trading volume: An example of a trading volume requirement would be that you need to have traded at least 5 standard lots with your broker before you can withdraw any profit. The exact volumes required differ between brokers, as well as any time requirements required to keep trades open.
- Have traded for a set number of days: This next requirement to withdraw trading profits is designed to stop you from opening an account and immediately making a withdrawal to take elsewhere. You may be required to not only keep an account open but actively trade on a number of consecutive days in order to be eligible to withdraw any profits made on your bonus credit.
- Deposit funds of your own: While this final withdrawal condition goes against what a forex no deposit bonus is all about, some brokers still make it a requirement. You may be asked to make a deposit, before any profits earned on your bonus credit becomes available to withdraw.
As much as us on the trading side of the industry would like to think that the broker is purely doing us a favour by offering a forex no deposit bonus, they actually have ulterior motives we go over in the next section.
Forex No Deposit Bonuses from the Broker’s Perspective
So come on. What’s in for the broker to make them offer you a forex no deposit bonus?
We’re sure you’ve heard the saying that there’s no such thing as a free lunch, so why on Earth are they offering you seemingly free money?
The answer to this question is that they simply want you to open an account.
The forex broker industry is actually one of the most competitive industries on the planet. With the forex markets being the global, decentralized markets that they are, literally, anyone can trade forex.
With so many potential traders all over the world, this also means a plethora of different forex brokers all competing for their clientele.
A forex no deposit bonus can make or break for whether you choose to trade with Broker A or Broker B.
Forex Broker Marketing Strategies:
“Did you know that a trading account from somebody in a tier-1 country such as England, Germany, or Australia is potentially worth hundreds of thousands of dollars to the broker if the client continues trading long term?”
If that’s how much profit a forex broker is able to squeeze out of a single account, how much do you think they’d be willing to spend on marketing to get new account sign-ups?
Well, the answer is a lot.
The risk of offering someone a no-deposit bonus to start their trading career with that particular broker is minimal when compared to the potential reward of establishing a long-term partnership with the client.
Remember, most regulated ECN forex brokers make money by taking a cut of the spread or commissions on every trade made, not by trading against clients. This means that brokers actually want you to become a consistently profitable forex trader, not blow your account, and never be heard from again.
Does Anyone Abuse Forex No Deposit Bonuses?
It’s only human nature that people are going to take advantage of potentially lucrative situations and unfortunately for brokers, abuse of forex no deposit bonuses is rife.
Here are the two most common tactics that people use to try and take advantage of forex no deposit bonuses:
- Signing up for multiple accounts: This abuse strategy involves signing up for multiple accounts with the same broker. The abuser often uses different names and fake identity documentation to try to receive forex no deposit bonuses in each account. From here, they’re able to trade risk-free, or try to employ hedging strategies designed to make money no matter which way the market moves.
- Hedging across different brokers: This alternative abuse strategy involves signing up for multiple accounts, but this time with multiple brokers. This strategy doesn’t require fake names and identity documentation because you’re using just one account per broker. By employing a hedging strategy across multiple brokers, one is going to make money, while the other is going to lose.
Hedging refers to opening two trades at the same time, one long and one short. What this does is create an opportunity where as the money you’re risking is a forex no deposit bonus, you are guaranteed to win one of the trades.
This hedging strategy is also sometimes referred to as forex no deposit bonus arbitrage and is banned in the terms and conditions of all forex brokers who offer any sort of bonus.
Remember, a forex no deposit bonus is designed to get you to develop a long-term relationship with your broker, not to take advantage by ripping them off and withdrawing your money, never to be seen again.
But brokers aren’t stupid and always know what’s going on. As a result, they’re known to employ the following strategies to combat abuse:
- Restricting the IP addresses of new sign-ups.
- Restricting the addresses of new sign-ups to stop accounts in a family member’s name.
- Requiring certain KYC, identity verification documents.
- Restricting certain countries where there may be limited profitability for the broker.
Final Thoughts on Going After Forex No Deposit Bonuses
If you’re looking for a broker that offers a forex no deposit bonus or any form of a trading bonus with no deposit for that matter, then check out the comparison table on this page. As we’ve touched upon within this guide to forex no deposit bonuses, picking the right broker is key.
When comparing brokers offering forex no deposit bonuses, we recommend only trading with regulated forex brokers. A regulatory organization oversees all business and financial operations of brokers within their jurisdiction.
They ensure the broker is economically sound, responsible, and not taking advantage of their clients.
If you choose to ignore forex broker regulations and have an issue regarding trade executions or the withdrawal of funds, you may have no legal discourse.
Some notable regulators include:
- NFA and CFTC (USA)
- FSA (UK)
- ASIC (Australia)
- CySEC (Europe)
If you’re ready to start trading forex, but you’re nervous about opening an account with a large up-front deposit, then a regulated broker that offers a forex no deposit bonus is for you.
If you want to start trading forex, but you’re nervous about opening an account with a large up-front deposit, then a broker that offers a forex no deposit bonus is for you.
Find all available Forex no deposit bonuses for 2024 from the Forex brokers and detailed terms and conditions.
