You would probably prefer the second model, whereas most forex brokers use the first model.

The first model is beneficial for forex brokers because it works like a filter. Only real investors will verify their identity.

The second model is designed to encourage investors who do not want to go through the difficulty of verification unless they have something to gain.

Other restrictions on requesting a free bonus

Forex brokers are very strict about this. Also, in addition to verification, brokers limit the premium to new investors. This makes sense, of course, because that’s the whole point of the forex bonus. If you have requested a no deposit bonus before the same broker, you are not entitled to request the same type of bonus.

In addition, your next of kin, roommates who have the same home address and the same IP address cannot claim the free bonus.

Before you apply for the no deposit bonus, it would be good to know if your roommate has already done so.

Trading with no deposit bonus

After withdrawing the bonus, it is time to trade. As you receive a free bonus to redeem, you are automatically limited to certain rules and regulations.

Below are the common restrictions when trading with a no deposit bonus.

Maximum land area

This is the lot size of the order. Some brokers prohibit their investors from opening orders for large lots.

Our observation is that the typical lot size for most brokers starts with 0.01 lots.

For an investor, trading with a small lot size can be daunting, because at the same time, in order to be able to pay a profit, the investor must achieve a certain trading volume. It is a forex broker strategy to stay active in business brokerage.

Maximum active positions

To make trading even more painful, some brokers limit the ability of their clients to have multiple active positions simultaneously.

Sometimes pending orders are also included in the number of active positions.

Depending on the strategy, limiting active positions can harm a particular trading technique.

If the investor is trading on the basis of a trend, he cannot open more positions at different prices to achieve maximum profit.

Bottom Line: Restricting active positions can be detrimental to investors’ trading experience.

Restriction of financial instruments

Trading financial instruments or currency pairs is an important part of forex trading. We can take advantage of market volatility to make profits.

Limiting trading in financial instruments means that we will have fewer foreign currency instruments to choose from.

Hence, it restricts your ability to trade when you notice a good entry setting for a particular currency pair.

It also limits your clients’ experience of trading with different currency pairs.

The main purpose of a no deposit bonus is to give clients the opportunity to get a feel for what it is like to trade with a broker at market conditions.

Conclusion: Limiting trading instruments can only hurt clients’ trading experience.

No deposit bonus validity

This is the validity period of the no deposit bonus.

The bonus will be canceled by forex brokers after it expires.

A short bonus expiration period means that clients may not have enough time to actually engage in trading on their account.

On the other hand, if enough time is allowed, clients may even be able to trade in different market conditions.

A good trial period for a real trading account should be 30 days or more. This gives clients enough time to fully understand what real trading is.

Finally, the no deposit bonus is intended for new investors so that they can try out how trading in the forex market works.

Conclusion: The short period of validity of the bonus is not an option.

Coverage or hedg  is not permitted

Hedging in forex trading simply means having 2 trades open in different directions.

The purpose of hedging is usually to temporarily eliminate market risk.

As the two orders cancel out each other’s profits, the investor benefits from short-term relief.

Sometimes hedging is used as part of a certain trading strategy.

Limiting the coverage would mean that investors would have to look for other methods of trading.

Conclusion: Without hedging permission, it will be difficult for investors to trade both ways at the same time.

Scalping is not allowed

Scalping is the method that investors use to make a small profit (usually 5-10 pips) several times a day.

They also hold a position for a very short time.

Investors typically use this method when there is high market volatility, such as when sharing economic data and information.

It is popular with investors because it has the potential to catch a lot of pips in the shortest possible time.

Of course, this is also a way to erase your account very quickly. For each open position you open you will have to pay a certain amount of spread. Use it wisely if you don’t want to receive margin calls.

Bottom Line: As this is a popular method with investors, limiting its use will certainly cause problems for investors.

Limited leverage

Basically, leverage means we can use a small amount of money to trade a larger position.

leverage is the reason why forex is so popular.

Limiting leverage can cause a very bad trading experience for investors. They can’t open a bigger job than they want.

This also reduces the volume of transactions, so that more transactions are required to meet the withdrawal requirement.

Conclusion: Limited leverage is a tactic that works against investors.

Expert advisers are not allowed

Expert advisers are also known as negotiating robots.

This simplifies the trading process by doing almost everything with a robot.

This includes opening and closing trades, generating a signal to enter the market, analyzing market conditions using indicators, etc.

There are some very good EAs out there.

Without a doubt, trading with a robot is interesting for anyone who has no previous experience in forex trading.

It is a system that does not require any commitment and does not pose any problem. Once set up, EA will take care of the trading from the start.

Restricting the use of EA is like restricting the use of elevators – instead of pressing a button to get to the top of a building, you’re asked to go up the stairs.

Conclusion: This is a lowering of the level of technology. Therefore, a no deposit forex bonus is not for you if you are an EA lover.

Withdrawal profits no deposit bonus

One of the most obvious things is that in most cases you won’t be able to withdraw your no deposit bonus.

What is the point of having such a bonus?

If you take advantage of it, you can withdraw it.

But experience tells us that it is not so easy to withdraw the benefit of a free bonus.

To make your life easier, we’ve put together a comprehensive list of what qualifies for profit distribution.

Trade volume

Trade volume is the volume of the transaction carried out by the investor and is most often expressed in lots.

Most forex brokers define trading volume as a parameter to determine if the investor is eligible for withdrawal. The main reason is to encourage investors to trade more.

The point is, more trades don’t mean you can earn more.

Some forex brokers even set a trading volume threshold of 100 lots. This scenario is almost like a mission impossible.

Moderate volume requirements, such as 5 lots, are acceptable.

But it also corresponds to the maximum lot size allowed per transaction and the maximum leverage allowed.

In Example 1, the allowed lot size was 0.01 lot. In this situation, even the trading volume of 5 lots is too high.

Bottom Line: A higher trading volume is not a good thing for investors.

Additional deposit required

Initially it is advertised as a no deposit bonus.

But when it comes to the profit withdrawal stage, suddenly you need to deposit a certain amount of money in order to benefit from the profit withdrawal.

Do not be surprised !

This is a common example of what happens in most cases.

The purpose of forex brokers is very clear. They want you to stay with them and trade with them. As we told you at the start of this guide, the main reason for receiving a no deposit bonus is to encourage you to trade in the forex market.

Our experience shows that investors are generally required to deposit an amount equal to the amount of profit.

Investors must then trade with the deposit and meet the trading volume requirements.

Conclusion: If a no deposit bonus requires a deposit at the end, why is it called a no deposit bonus?

What to pay attention to when choosing a no deposit bonus

Before trying it out, make sure you’ve chosen the right broker for the transaction.

There are many brokers in the market offering free no deposit bonuses.

This will cause some confusion when trying to make a decision.

Remember to check out all the online and local brokers available in your area and review them one by one before you start.

Reputation

The reputation of a broker depends on the investors who have dealt with them in the past.

Investors will not hesitate to tell everyone that they have lost money to dishonest brokers.

They will leave journals so that the next person knows what they are up to.

Search the selected broker with the following keywords to find comments and opinions about them: “Forex Broker Name” + comments, fraud.

You can also check it offline.

People in your circle who have experience trading the forex market will be happy to share their ideas.

They will also recommend their broker to you.

A good recommendation from a friend can save you a lot of time and trouble.

Licenses

The reputation of a broker depends on his legitimacy.

You want to work with a licensed broker certified by the competent authority.

We are sure you don’t want to waste your money.

The regulator ensures that the credibility and integrity of the broker towards investors is ensured.

Without regulation, investors do not have the opportunity to verify the legality of the broker they use.

Some countries have strict rules for forex brokers.

These countries already have organizations that regulate the activities of companies that provide financial services.

Unfortunately, there is no central organization to monitor the forex market.

US Commodity Futures Trading Commission (CFTC), US National Futures Association (NFA), UK Financial Services Authority (FSA), EU Markets in Financial Instruments Directive (MiFID) , etc. and the National Futures Association (NFA) of the United States are among the important regulators.

FBS (2009) Leverage: up to 1:3000 * Deposit: from 1 USD Spreads:    mid Location: Cyprus Belize Instruments: Currencies Indices Metals Energies Platforms: Web MetaTrader 4 MetaTrader 5 Specific