Trick with Broker's bonus!

Many broker provides huge bonuses for new accounts. Is it possible to take advantage?

Idea: Open two $ 1000 accounts. Got $500 bonus money.

Now we open two hedged trades. And on one account, we lose $1000 and $500 bonus, on the other one we gain $1000 ( real money) and $500 ( REAL MONEY).

Why this won't work: Broker has several limitations: time limit you should trade for a particular period of time and volume limit, you should trade particular lots to make your bonus available.

Plan: To complete requirements make hedged trades for 10 pips. In a random direction. You have 50% to win and 50% to lose so balance on both accounts should remain equal.

For me this sound good, but I have a feeling that I forgot about something. Some underwater stones.

Suggestions?

Josef

Probably spread, combined with the fact that you should trade an awefull large volume to claim the bonus. I computed it for several brokers; most of the time you only get your bonus when you traded such an amount that the broker already made more profit by spread then your bonus.

Especially if you're trading for 10 pips and have a 2 pip spread. 0,5 * 8 - 0,5 * 12 = negative.

Besides that you will have price difference, slippage, and disastre when one broker accepts your trade but the other doesn't (happens every now and then)

Like the idea, but can think of many pitfalls though

utilize time in real trading rather then wasting time in silly tricks.

You may want to read the fine print....because they probably won't allow you to withdraw that bonus money from your account for a significant amount of time (You can only withdraw up to the amount of your original deposit). They will provide enough time for you to not only lose the bonus money...but your original deposit.....it's all in the statistics as far as they are concerned. I'd be interested to know what the fine print says.

Heres a real life story....

Alpari were giving 10% bonus if x ammount of 'full round lots' were traded within 3 months. Ran a mad ea martingle/hedge, you name it, did it. Crazy mudder trades on a small account. Like 3 - 5 lots ($10k account).

Exceeded the requirement within a couple of months.

Time came to claim, first they tried to argue that i had not exceeded it, but i ran some total exposure program to show i had, then they doubled the lot requirement!! and said it was within their terms and conditions that they are allowed to do so.

Bottom line, its just a marketing scam.

(Did i blow the account eventually.... hell yeah!! but i had the added satisfaction of not blowing it with those scoundrels)

Hello Josef
I know Im two years late on this discussion but I would like to edify your theory stating that it works. Heres How !! 1) YOU NEVER CLAIM THE BONUS 2) WHAT YOU CLAIM IS THE PROFIT FROM THE REVERSE HEDGE POSITION !!
I say this from experience trading this strategy on the Live Market
:-) Happy Trading Folks..................................THE ONE WHO WINS IS THE ONE WHO KNOWS

I have always been very sceptical about getting forex bonus's as alot of the time there is always some form of string attached. Is a broker really going to give you £3000 when you deposit £10000 free? maybe a broker who is very very kind may do, but generally there is always some kind of rollover requirement of some sort, much like casino or sports bonuses.

Usually i always request not to have any bonuses at all, i always tell the broker i only wish to trade with the funds i have deposited. I have heard reviews of some people writing bad reviews and bad names about some brokers because there are so many terms attached to these bonuses.

Real serious broker doesn't provide bonus

I wouldn't touch bonus from broker with a long fork. its just meant to distract you into over trading and loosing everything

When you trade with good company bonus can be very helpful. It is very easy to understand that you cannot withdraw the bonus because it's not a present, you can make bigger profit thanks to bonus and everything depends of that if you are good trader

Good company
Bonus

These 2 sentences can't stand in the same phrase ...

It's more like bonus with the broker's tricks. You forgot that it's a computer, that son of a witch is like a grand master chess champion, over thousands of live trades, I have seen it move out of just about everything and even perfectly hedge (-100 -100) on many occasions. As it states on the MetaQuotes website, the average Metatrader Manager machine can handle up to 10,000 traders with multiple positions simultaneously (that was 2009). This guy shows some more stuff.

http://alansforexblog.com/2008/04/20...ers-cheat-you/

Bonus is a just a promotion to get more clients. In reality once your investment gone bonus also gone. So broker company won't lose anything. Even if you are a very good trader to withdraw the bonus there are lots of conditions to fulfil.