As the popularity of Forex trading has grown, so has the number of brokers in the industry. One of the most important factors in choosing a brokerage business are the bonuses it provides. FX brokers aim to come up with new and creative ideas and promos as frequently as possible. But not every bonus is trustworthy; some are either impossible to meet or are Forex trading scams. The primary purpose of some of them is to cheat their customers of their money.
The firm's main research and development office is based in Tel Aviv Israel. It originally specialized in Forex and indices spreadbetting and CFDs but has recently expanded in stock trading also.
At the time of writing, eToro has 2.2 out of 5 star on Trust pilot. The comments suggest that the platform offers some impressive features but withdrawing money can be difficult. Having said that, some of the negative reviews appear to be rants rather than constructive criticism. This can be examples of traders losing money through their own recklessness rather than eToro's fault. You should therefore take this reviews with a pinch of salt.
“the platform offers some impressive features but withdrawing money can be difficult.”
76% of retail investor accounts lose money when trading CFDs with this provider.
OANDA is a global financial services company providing advanced currency solutions to both retail and corporate clients all over the world. In this article, we are going to review this broker’s trading options, tools, platforms, spreads, commissions, security measures, and educational resources to help traders make the right choice.
76.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing
AvaTrade offers a wide variety of trading solutions (spread trading, CFDs, and social trading), and peace of mind with its comprehensive regulation, covering the EU, Australia, Canada and South Africa. Clients can use a variety of platforms for discretionary and automated trading.
76% of retail investor accounts lose money when trading CFDs with this provider.
Offers multiple asset classes, platforms, and regulated in a variety of regions. Caters for a global audience. Awarded with the Highest Overall Customer Satisfaction Award for 5 years running - Investment Trends CFD Report 2015.
A standalone copy-trading ecosystem, providing equities, foreign exchange, commodities and cryptocurrencies markets. Provides a global selection of brokerages.
Pepperstone is a global regulated broker that provides its clients with the latest technologies for trading multiple assets such as Forex, indices, cryptocurrencies, stocks, ETFs, and commodities. This article provides an overview of its trading platforms, tools, fees, protection measures, and other aspects to help traders make a more informed decision.
Factors worth considering
There is nothing more appealing to Forex traders than receiving a bonus or promotion. Customers will be given extra money to trade with in the future as a result of this offer. There are many types of Forex bonuses available, such as deposit bonuses, no deposit bonuses, competitions, and brief promotions, to name just a few. Before accepting any inducement, you should think about several factors.
Before enrolling on a broker's website and examining their bonuses, do some research on their authority and license. Genuine brokers will always offer their customers amazing deals, while fraudulent brokers will either lack a license or possess no practical knowledge of the foreign exchange industry.
Because of their inexperience, new traders often make mistakes and overlook important details that might have a significant impact on their trading results. As a result, changing the bonus money to cash and then withdrawing it later becomes a complicated process.
How to spot Forex trading scams...
Moreover, a minimum deposit for opening an account with a financial service provider is always required by scam brokers in order to receive bonuses. If a broker is doubtful, as written on this website, the deposit requirements may be overly high. Refuse the bonus and leave if you think the amount is out of the ordinary.
Brokers that are not regulated do not have to report to a regulatory agency. As a result, if they defraud you in any manner, whether it's a bug in their system, a malfunction, or if you try to withdraw your money and they don't process it, you're out of luck. There isn't much you can do outside writing a negative review online since these brokers aren't required to respond to anybody.
Pros and cons of FX trading scams and bonuses
It is one of the key benefits of Forex bonuses that your capital is increased. You are more inclined to trade Forex if you get a free bonus. Motivated by increased funds, driven by the need to meet bonus requirements, and driven by a desire to engage in trading, there are many reasons why you could consider doing so.
The more money you have in your account, the more likely you are to try your hand at trading. Keep in mind that, even though deposit bonuses are entirely free, there are certain restrictions associated with them.
Choosing the finest Forex broker is easy when you have a bonus to work with. Everyone in the brokerage sector claims to have the most lucrative incentive plans in the industry. Because of your budgetary constraints, you may only be able to work with one or two at a time. When looking for a broker, seek one that has a good incentive program and also performs well in the markets.
Even though Forex bonuses are meant to entice new investors, the limitations tied to them, together with the reputation of the broker, ultimately decide which investors choose to spend their funds. For others, investing in Forex is out of reach due to the high minimum investment thresholds.
Gain even by starting small
Deposits as little as $100 are eligible for incentives from most brokers. So even if you just have $200, you can still play the game to the fullest extent. Your deposit will rise from $200 to $240 if you find a broker that matches your deposit by 20%. Increasing the size of your positions makes trading more convenient. Increase your initial investment and shift your trading position if you want to make even more money.
As we already stated, bonuses have terms and restrictions. The majority of brokers will not allow you to withdraw your gains unless you reach the trading volume requirements. In other words, if you don't reach the lower ceiling, you won't be able to collect your money.
The problem is that most brokers limit your subsequent deposits to the parameters of your initial bonus. This is one of the disadvantages of Forex bonuses. However, you can solve this problem with a detailed reading of the terms and conditions of the FX bonus, to avoid all the uncertainty.
Conclusion
To conclude, when it comes to Forex trading scams there are many things that are worth considering. One of the main ones is to avoid Forex scammers that try to attract new customers with the use of fake bonuses. So, remember to not accept any promotion or offer until you read the terms and conditions thoroughly.
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