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Question about bonuses from Forex Brokers

  • #1
  • First Post: Jan 24, 2014 3:54am Jan 24, 2014 3:54am

It became very common for many Forex Brokers to offer a bonus for new traders. However, they always have a small clause on the bottom of each bonus promotion that you are not allowed to withdraw money unless you reach a certain number of trades or volume.

Now CySEC announced that the Cyprus Forex Brokers are allowed to offer bonuses but it says clearly that the clients’ funds must be free for withdrawal at all times and whenever the client wishes.

The question I have now is that let say I deposited $1,000 and I received a bonus of another $1,000. Then I will be able to withdraw the full amount of $1,000 that I deposited any time and trade only with the bonus. So if I trade with a Forex Broker that offers bonus, I am allowed to trade only with their bonus.

Is this correct? All Forex Brokers that offer bonuses are welcome to reply to this thread.

  • #2
  • Jan 24, 2014 1:54pm Jan 24, 2014 1:54pm
Yes, it seems that CySEC is trying to establish that clients are free to withdraw their capital whenever they desire. Here is an excerpt http://www.leaprate.com/forex-indust...o-trading.html

However, it doesn't make sense to me because in a hypothetical scenario that you illustrated above, client will be trading without any risks. Hmm, 2+2 doesn't make 4. Something is definitely wrong here. Maybe, a broker will clarify or wait a week and we may get some kind of further clarification from the industry or the Forex community.
  • #3
  • Jan 25, 2014 11:16am Jan 25, 2014 11:16am
A mouse will always find free cheese in the mouse trap.
  • #4
  • Jan 30, 2014 12:19pm Jan 30, 2014 12:19pm
Quoting Umaf
Yes, it seems that CySEC is trying to establish that clients are free to withdraw their capital whenever they desire. Here is an excerpt http://www.leaprate.com/forex-indust...o-trading.html However, it doesn't make sense to me because in a hypothetical scenario that you illustrated above, client will be trading without any risks. Hmm, 2+2 doesn't make 4. Something is definitely wrong here. Maybe, a broker will clarify or wait a week and we may get some kind of further clarification from the industry...

That would be the irony of the whole thing, there wouldn't be need to deposit in the first place. Just get signed up and you start trading, I think it would be more reasonable to allow some trading time to pass by before allowing one to withdraw their bonus which most brokers do. Am currently with Profiforex and they offer welcome bonus which can be withdrawn, and I think all that is required is opening a trading account and make the initial deposit!
  • #5
  • Jan 31, 2014 4:14am Jan 31, 2014 4:14am
Hi guys,

I believe I found how Forex Brokers are able to offer bonuses. In a clause of one of the Forex Brokers I found the following

8. The Welcome Bonus will be credited into the eligible Client’s account, as a notional sum, after all requirements set out in these terms and conditions have been met. The Welcome Bonus will not be recorded or construed as a liability of *** towards the Clients and may be unilaterally, retroactively and unconditionally be withheld and subtracted from the Clients’ accounts, at any time and at the discretion of ***.


This means that if you deposit $1,000 and you decide to withdraw the full amount once you receive the welcome bonus then the Forex Broker is allowed to deduct the bonus from your account so you will not be able to place any trades.
  • #6
  • Jan 31, 2014 4:31am Jan 31, 2014 4:31am
Only MM brokers offer bonus.
I`ve never heard ecn brokers offer bonus.
Bonus is bait.
  • #7
  • Jan 31, 2014 6:52am Jan 31, 2014 6:52am
Quoting tradethefx
It became very common for many Forex Brokers to offer a bonus for new traders. However, they always have a small clause on the bottom of each bonus promotion that you are not allowed to withdraw money unless you reach a certain number of trades or volume.Now CySEC announced that the Cyprus Forex Brokers are allowed to offer bonuses but it says clearly that the clients’ funds must be free for withdrawal at all times and whenever the client wishes.The question I have now is that let say I deposited $1,000 and I received a bonus of another $1,000....

Some Brokers will offer you upto 100% Bonus , but it can not be lost , say you deposit 1000 they will add 1000 , the moment your equity is below 1000 USD , the bonus will be removed and you will have ZERO in your account so becareful . Any bonus you choose but be sure to ask broker whether their bonus can be lost .

About withdrawing after receiving the bonus , if you decided to withdraw no matter you are in Loss or Profit , some brokers will remove the bonus in full some brokers will remove the bonus amount upto your withdrawal.
  • #8
  • Jan 9, 2017 12:10am Jan 9, 2017 12:10am
No such brokers that offers bonuses that when you withdraw your deposit money it will stay in your account, it is just logical that when the deposit money is gone or withdrawn then the bonus will also be removed unless you made some profits then the profits will remain.
  • #9
  • Apr 16, 2017 12:34pm Apr 16, 2017 12:34pm
Really bonus is one of them major issue for the newcomers when choosing a broker, in order to my trading understanding I can suggest, we the traders first of all have to take any kinds of bonus offer from only the brokers which are regulated , otherwise it is useless to have 200-300% bonuses which cannot use at all due to margin stop outs.
  • #10
  • Apr 17, 2017 6:35am Apr 17, 2017 6:35am
There have been a lot of changes since the first post in this thread was made back in 2014. CySEC forbade brokers from offering their clients bonuses, and then the regulator also clarified what exactly constitute the banned bonuses. The Welcome/Deposit Bonus/Re-deposit bonus was among them.
Unless CySEC reversed course during the holidays a broker regulated by them shouldn’t be offering such a bonus to begin with.
  • #11
  • Apr 18, 2017 1:37pm Apr 18, 2017 1:37pm
I am not entirely sure about CySEC announcement, but it is obviously not like that. I don't think it makes sense to ask that, as obviously no broker will allow you to use bonus with taking the original amount out. It might work this way. If you deposit 1000 USD and get like 500 USD bonus then if you withdraw 100 USD, it will take 50 USD away as well.
  • #12
  • Last Post: Apr 19, 2017 9:30am Apr 19, 2017 9:30am
When we are talking about bonuses, regaardless of the type, it’s very harmful because when you lose money, you lose yours first. Basicaly the broker increases your exposure. For example a 100% bonus will make you open a trade with double the volume, charge you double the spread and exposes you to risk twice as much. Not to mention that when I am losing a trade, I am losing my money and not the bonus.

Cysec banned the bonuses, the FCA did that too and other regulators will follow the same path.

http://www.cysec.gov.cy/CMSPages/GetFile.aspx?guid=8a41b640-9022-4986-b6d9-dff92c39888f
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