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Taking advantage of the welcome bonus

  • #1
  • First Post: Aug 15, 2010 3:16pm Aug 15, 2010 3:16pm
I had a thought today about an alternate way to make money through trading without having to be a very porifitable trader.

When I first opened a live account my broker gave me a £200 welcome bonus. The condition was it was only withdrawable after I'd opened and closed a fixed number of trades. Of course being new to trading then I lost this bonus and 10% of my account.

I noticed that a very well known broker is offering up to a 20.10% bonus on ones deposit. Of course there are conditions, the main one being that the trader is required to place 400 round trip trades before the bonus is paid out.

With a £20,000 deposit we are talking about a bonus of £4,020.

Say you were at the level where maybe you weren't making lots of money from your trading, but you were at least breaking even, it would be fair to say you could take 400 short term trades in the space of 2 months with the aim of breaking even, or better, by the end. Then you collect your bonus and move on to the next broker. Or even if you did it as a one time thing you have just made yourself £4,020 to add to your trading account or get that signed copy of Ghostbusters II you always wanted.

Or maybe I'm just talking nonsense.
  • #2
  • Aug 15, 2010 11:15pm Aug 15, 2010 11:15pm
Quoting Roofx

....you could take 400 short term trades in the space of 2 months with the aim of breaking even, or better, by the end.
The plan was going great up to that point!

Brokers rarely give very much away so 20% bonus offers need to be paid for, which broker is it?
  • #3
  • Aug 16, 2010 12:09am Aug 16, 2010 12:09am
Quoting Roofx
I had a thought today about an alternate way to make money through trading without having to be a very porifitable trader.

When I first opened a live account my broker gave me a £200 welcome bonus. The condition was it was only withdrawable after I'd opened and closed a fixed number of trades. Of course being new to trading then I lost this bonus and 10% of my account.

I noticed that a very well known broker is offering up to a 20.10% bonus on ones deposit. Of course there are conditions, the main one being that the trader is required...
Sure do it the hard way!

Risk reward is slightly off here! you're talking about 10 trades a day! Say you traded the EUR you would need to make 100 pips a weeks just to cover the spread (at 2 pip spread)

If you can do this over a month then what the hell are you doing taking $4020? Go for the mil I say

Also like pipmutt says all they would need to do is put the spread up .5 of a pip and over 400 trades it will prob be you paying them 4000

i wonder if they let you trade at 1 cent a pip! open close open close open close open close...lol
Time hides Nothing
  • #4
  • Aug 16, 2010 9:39am Aug 16, 2010 9:39am
Quoting pipmutt
The plan was going great up to that point!

Brokers rarely give very much away so 20% bonus offers need to be paid for, which broker is it?
FXCM
  • #5
  • Aug 16, 2010 9:40am Aug 16, 2010 9:40am
Quoting CindyXXXX

i wonder if they let you trade at 1 cent a pip! open close open close open close open close...lol
Lol, unfortunately each trade must be with one standard lot. It's one of those amazing offers that upon inspection is actually rubbish...UNLESS you can work it to your advantage and beat them at their own game, which is why I looked into it
  • #6
  • Aug 16, 2010 11:34am Aug 16, 2010 11:34am
Quoting Roofx
It's one of those amazing offers that upon inspection is actually rubbish..
I think it's pretty shabby really. If you do the arithmetic it's virtually impossible to gain from the offer unless you trade with crazy margin management.

I normally stand up for brokers against the usual pathetic whingers but these offers are a con trick and don't do brokers' reputations any good at all. Are you reading this Mr Broker? Try for some integrity.
Gone to a better place
  • #7
  • Aug 17, 2010 7:46am Aug 17, 2010 7:46am
Seeing as it is with FXCM and there spreads are crap and they tend to have random price spikes here and there I would not want the bonus.

If it was with someone reputable and you could trade profitably then it would actually be a bonus payment.

RT
  • #8
  • Aug 18, 2010 7:15pm Aug 18, 2010 7:15pm
Kind of like in Vegas where you get the coupons for some free gambling, but in the end you realize it was a way just to sucker you in.
  • #9
  • Aug 19, 2010 6:51am Aug 19, 2010 6:51am
Quoting eagle4x
Kind of like in Vegas where you get the coupons for some free gambling, but in the end you realize it was a way just to sucker you in.
I know those, you get them and they are usually small and have the fine print that electron microscopes are needed to read that say

must be used at ..... table or ...... machine. You take it there and realise that the table minimum doesnt get covered by the voucher and you have to pony up your own cash to cover. Funny thing is that it works because you dont want to look like a cheap douche at a crowded roulette table trying to get a voucher bet on red or black.
  • #10
  • Mar 10, 2012 1:38pm Mar 10, 2012 1:38pm
Quoting Roofx
I had a thought today about an alternate way to make money through trading without having to be a very porifitable trader.

When I first opened a live account my broker gave me a £200 welcome bonus. The condition was it was only withdrawable after I'd opened and closed a fixed number of trades. Of course being new to trading then I lost this bonus and 10% of my account.

I noticed that a very well known broker is offering up to a 20.10% bonus on ones deposit. Of course there are conditions, the main one being that the trader is required...
There is a much simpler way to do it...

Find 2 such broker accounts, the offers don't have to be identical, just any kind of bonus really, deposit as much as you can in each. Open a long eurusd in one account, and a short in the other account. When one account is MC'd (including the bonus), withdraw your profit in the other account (leaving that account's bonus with the broker). Could be done in 3 days max.
  • #11
  • Mar 11, 2012 4:18am Mar 11, 2012 4:18am
Quoting rooicol
There is a much simpler way to do it...

Find 2 such broker accounts, the offers don't have to be identical, just any kind of bonus really, deposit as much as you can in each. Open a long eurusd in one account, and a short in the other account. When one account is MC'd (including the bonus), withdraw your profit in the other account (leaving that account's bonus with the broker). Could be done in 3 days max.
It took me a second to work out that would work but I like it. Now, just to find two brokers offering a deposit bonus...

In general deposit bonuses are for online bookmakers and they do nothing to enhance the integrity of a forex broker, like someone said above.
  • #12
  • Mar 16, 2012 12:54pm Mar 16, 2012 12:54pm
I thought bonuses only happend in Gambling, never knew they existed for trading =O
  • #13
  • Apr 12, 2012 3:01am Apr 12, 2012 3:01am
Great thread!

rooicol has an interesting idea, going long and short, you basically lose all your money and the bonus money in 1 account, but the other account makes the bonus(that you lost in the first account as profit) interesting.....

I was trying using stop entry orders so they both entered at the same point and of course 1 broker entered and one didnt! it came with 0.1 of a pip from getting in!

I'm looking at Synergy FX, they are offereing a 30% bonus. where you can withdraw after you do bonus/10 so its like you are getting 1 pip back. Refund FX are offering a 0.5 pip rebate at the moment, and the spread at the moment is 1.3.... thinking of buying and selling like crazy.... then again. it only takes 1 bad trade to smash me....

I might open an account in my mates name and give the drain account idea a shot.....
  • #14
  • Sep 4, 2012 4:11pm Sep 4, 2012 4:11pm
Guy's smart idea I actually thought of this a while ago, issue is the fact that they not have stop out levels, so your account reach nill while the other reaches nearly double. I believe in this method, but the bonus will need to be quite large, so the stop out levels will not affect it much, I'd be happy to work with anyone here on finding a way, maybe using the bonus from affiliates or something might help. Anyway guys tell me if there is a broker that can tailor to these needs.
  • #15
  • Oct 19, 2012 5:17pm Oct 19, 2012 5:17pm
I prefer no deposit bonus .Because using no deposit bonus you can trade using this particular broker and you will have clear conception about the broker. Also it is good when we get welcome bonus from a trustful and old broker.
  • #16
  • Oct 20, 2012 8:02am Oct 20, 2012 8:02am
majority of the retail traders are meant to lose in a matter of time, i only barely knew a few authentic retail traders that are doing ok and well in terms of professional trading and their methods to trading.

Don't be lured by broker's welcome bonus, it's a marketing effort, the more trades you are supposed to trade to unlock the bonus is actually pushing your desires and greed to earn which in turns increase your risks involvement and risk % which many traders do not know. Those brokers tells u they have this that benefits, tutorials etc are actually misleading the public newbies.

anyway i call retail traders gamblers only until they can trade on a dd less than 9% at any point of time with more than 20% roi per month without fail. Because their methods obviously are gambling, it's a matter of time they lose.

No one real retail trader started out like a pro, they keep on making mistakes that's how they learn and get experience.


A public should look at a broker that does " market execution " instead of " instant execution " to know what is ecn/stp or market maker.

And leverage kills! a matter of time .

Trading without bonus will be recommended as the starting bonus only acts as a leverage and is not your money/profit.

Most brokers are willing to lose that 20-50% as they are just trying to win your 100% and more deposits in a matter of time.

If you ever deposit more than once and still not making real growth, a retail trader should probably quit trading and learn first through either school/demo for at least 1 year from the experts before they take on the market if they really want to stay on this arena.
  • #17
  • Oct 24, 2012 3:59am Oct 24, 2012 3:59am
I think that hope on bonus is not a good idea. I mean really they are not actually your money. With providing a lot of bonus broker just make your appetite bigger and this is all.
So if there is any bonus - ok, but act like you don't have any.
  • #18
  • Oct 24, 2012 4:31am Oct 24, 2012 4:31am
Quoting meng88
I think that hope on bonus is not a good idea. I mean really they are not actually your money. With providing a lot of bonus broker just make your appetite bigger and this is all.
So if there is any bonus - ok, but act like you don't have any.
You need to read the terms. You can not withdraw the bonus until a certain number of lots are traded. This usually calls for huge over leverage which will result in a blown account for most people.
Gone to a better place
  • #19
  • Oct 24, 2012 9:12pm Oct 24, 2012 9:12pm
I don't know about you, but I'd contemplate carefully about opening a big account with a broker that attracts clients with gimmicks rather than reputation and quality of service. Also, food for thought, 20-30% welcome bonus says a lot about the broker's expectation for the retail trader's chance in the market.
  • #20
  • Oct 25, 2012 1:08am Oct 25, 2012 1:08am
Quoting smikester
You need to read the terms. You can not withdraw the bonus until a certain number of lots are traded. This usually calls for huge over leverage which will result in a blown account for most people.
I actually know it. I didn't mean withdrowing bonus straight away, I mean that some traders changed the trading style after getting some bonuses to the unsafe one. And that is why they will blew up. This change is not conscious. They get bonuses, they think they have enough to run riskes and they blew up very quickly.
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