Brokers With Bonuses

Broker bonuses are dangerous due to their ambiguous nature. They can encompass anything from genuine advantages to outright scams.

Broker bonuses are often referred to as marketing promotions. Both legitimate brokers and scams use them to attract more clients. Usually, the type of Forex broker bonus can indicate whether the broker is trustworthy or a fraud.

What a Broker with a Registration Bonus Commits You To

Is the broker offering a reward solely for registering with them? This should raise a red flag. It’s important to thoroughly examine the trading conditions.

For example, the bonuses from “Broker X” are in the form of points. These points are awarded to traders for:

• • Their birthdays

• • Bringing in new clients

• • Active trading as cashback

One point equals one Russian ruble. To spend these points, a special gift shop has been set up.

Bonuses from brokers that provide deposit-based points are legal rewards. They are modest and are generated from the commission paid by traders.

It’s crucial to understand that the broker has raised the bar. They have significant fees. These points are not free. Traders pay for them when offsetting the commission. They help recover a portion of their expenses.

If you’re considering a Forex broker that offers a registration bonus, and if you see promises of 10–150% added to your deposit, be aware: it’s a scam. A reliable broker has no reason to offer rewards to all clients.

Imagine a scenario where a Forex broker you like offers you hundreds or thousands of dollars with no strings attached. You only need to enter the market. For a legitimate broker, this is too risky. They can’t be sure that a trader won’t lose all their money along with the bonus on the first trade. If this happens, the broker bears the loss with no compensation.

Scam brokers are the ones that scatter bonuses. They simulate trades. Real capital isn’t involved. Thus, they can manipulate account balances however they want.

Fake Forex Brokers with Registration Bonuses: The Scheme Explained

Forex scammers offering 10–100% bonuses on deposits have several motives. The first is to lure clients. It’s much easier to convince someone to register and deposit funds if you promise them “free money.” Many novice traders can’t discern this scam and fall for it, ending up in financial trouble.

The second reason for offering bonuses is to stall withdrawal. This can be prolonged indefinitely.

A trader receives a reward, and the broker obliges them to trade to work off the bonus. If the trader refuses, threats begin. The broker threatens to confiscate:

• • bonuses

• • all profits, even if there are none

Novices often panic and exhaust themselves trying to meet the required trading volume. In the end, they drain their entire deposit, not realizing they’ve been scammed.

The third motive for offering bonuses is to make traders spend more. To work off the bonus, some traders deposit more funds. They believe it will only benefit them and lead to the desired trading volume more quickly.

Attention: Forex scammers are just waiting for traders to deposit funds so they can work off the bonus. Fraudsters can’t let traders succeed. Offering more funds is a huge mistake. Once you deposit funds, the scam broker will award you more bonuses that you’ll have to work off.

Attention: Even if you miraculously fulfill the required trading volume, the broker won’t allow withdrawals. They pocket all the money every time you make a deposit.

Forex Brokers with No Deposit Bonuses in 2022: What to Expect

There are Forex scammers offering hundreds of dollars in exchange for registration. They assure you that the money will be there even if you don’t deposit.

Why the generosity? Brokers claim it’s to prove their reliability. Traders believe it and start trading. All positions seem profitable. After this success, the trader wants to earn with their own money and deposits funds.

The trap closes. The scam is complete — the broker takes the capital. The money is in their pocket.

Traders must understand: all brokers offering no deposit bonuses are scammers. Why would a reliable broker give away their money to anyone, hoping they’ll make a deposit? It’s too risky.

Every Forex broker with a no deposit bonus has full control over the trading. They can simulate profitable trades to encourage clients to deposit more funds.

Ahead lies a trading nightmare for the unsuspecting trader. All their positions turn into losses. And they’ll believe it’s all their fault.

Fake brokers with registration bonuses and no deposit requirements have yet another scheme. They simulate successful trades. When the client wants to withdraw, they find they need to compensate for the awarded bonuses. In other words, to retrieve their profit, they have to deposit more funds.

This scheme works perfectly. In the trading terminal, the trader sees real money. It’s almost in their pocket. To withdraw it, they just need to deposit more. Why not? After all, they can retrieve everything, including the entry ticket.

In reality, there won’t be any withdrawal. As soon as the trader sends money, the scam broker will swiftly take it.

Scams with Forex Broker Reviews: What to Watch Out For

There are intermediaries (both honest and fraudulent) that offer rewards for specific actions:

• • Social media subscriptions

• • Likes

• • Positive reviews

This is gray marketing, a way to profit from traders.

Honest brokers can be distinguished from scammers based solely on the size of the bonus. Legitimate brokers offer modest fee reductions and slightly improved trading conditions. Scammers offer much more, up to zero spreads and commissions.

What to Do If a Broker Offers a Bonus

Brokers offering such rewards should be on your blacklist. Any attempt to engage with such fraudsters will lead to scams. Even if the broker is legitimate, there will be no good outcome. They will compensate their expenses from your funds. In other words, you’ll have to pay.