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Do You Think Only Bad Brokers Give Out Bonuses?

  • #41
  • Feb 3, 2017 6:45am Feb 3, 2017 6:45am
Quoting johnnycash
For most people doesn't matter all of the mentioned. You can give them zero spreads, no commissions and best possible execution. They will blow up their account anyway. So bonuses - the bigger the better - looks very appealing. I just checked this forum - for years we have the same discussions - people still looking for same things - tiny spreads, execution and so on. About 10 years ago - spreads were around 3- 5 pips on EUR,USD, now its about 0.1-0.6 Anything changed? No. Still majority are net losers.
Completely disagree. The fact that there will always be people that blow up their account is the nature of everything....business fail...people lose their jobs, it's never a homerun every time...but most 3-5+ years members here, have been trading for years and that's for a reason.

I understand its a generalization most people just say yes too, but there's PLENTY of traders that have figured it out
  • #42
  • Feb 3, 2017 7:34am Feb 3, 2017 7:34am
In my view every broker offering bonus cannot be bad, certainly most of them can be Market maker but everybody cannot be bad. I agree with Johnnycash, it just acts like additional leverage. But when you go in to withdrawing the bonuses this is situation where you can be tricked as at that point of time you need to fulfill certain terms of conditions of volumes or lots. And to meet these conditions when you trade aggressively, your chances of losing money increases significantly.
  • #43
  • Feb 3, 2017 9:01am Feb 3, 2017 9:01am
As the others already explained brokers who offer bonuses are just trying hard to have more clients. What that means is that they don’t put effort to hold their clients (getting their money) so they need to catch more clients with different methods like various bonuses.
The regulators have seen that so they are banning the bonuses you can read more here:
http://www.financemagnates.com/forex...-affect-sales/
http://www.financemagnates.com/forex...-leverage-cap/
  • #44
  • Feb 3, 2017 6:04pm Feb 3, 2017 6:04pm
I completely believe that people just complicate it for themselves, as why do we need separate looking? We need good broker and that is what the search should be about. So, once we know that we are with broker that’s good enough then we won’t need to think twice with the offering we find there. But, if we look for such offers upfront then there is heavy chance we might just end up wrong side of things which is not good!
  • #45
  • Feb 6, 2017 6:33am Feb 6, 2017 6:33am
Regarding the new regulation – brokers have already started following CySEC’s mandate and they’re lowering their leverage and removing bonuses for traders. I am assuming that the FCA-regulated brokers will begin doing that too in the coming months. Who knows whether other European regulators won’t implement such rules as well. My point is, the initial question might become obsolete about a great number of European brokers at least.
  • #46
  • Feb 6, 2017 8:29am Feb 6, 2017 8:29am
Quoting meyoik
My rule of thumb...If a broker offers bonuses, I can't take them seriously......(same with Jim Carrey in dramatic roles) I know it's hard as a new forex broker to break into the market, and with my approach I might let a couple of great broker firms go by. BUT, a broker that has earned their reputation for their trustworthiness, execution metrics, good spreads, transparency, ease of transfer of funds is what I'm looking for...so I'm sticking with brokers that have proven the above versus...a bonus??? If you are a true trader...would you succumb...
Exactly what I was trying to say previously. Good traders couldn’t care less about bonuses.
  • #47
  • Feb 6, 2017 8:43am Feb 6, 2017 8:43am
Quoting UlliC
{quote} Exactly what I was trying to say previously. Good traders couldnt care less about bonuses.
A good traders know math. Bonuses are just one part of the equation..
  • #48
  • Feb 8, 2017 3:42am Feb 8, 2017 3:42am
Quoting Quushey
{quote} A good traders know math. Bonuses are just one part of the equation..
Hi Quushey,

Do yourself a HUGE favor. Reread this thread and try to add up why this is NOT about math before you get yourself in trouble on the basis of a cheap marketing scheme. You will pay back that bonus tenfold, and it won't have to do with math. They'll bury it in the spread, spike your stop losses, hold on to your money longer than they should, I could go on and on.

OR...

Just go and get yourself (and your hard earned savings) in the mud because someone dangled a 30 buck carrot in your face.

Be smart, learn to trade, forget the carrots.
  • #49
  • Feb 12, 2017 2:41pm Feb 12, 2017 2:41pm
Quoting meyoik
{quote} Hi Quushey, Do yourself a HUGE favor. Reread this thread and try to add up why this is NOT about math before you get yourself in trouble on the basis of a cheap marketing scheme. You will pay back that bonus tenfold, and it won't have to do with math. They'll bury it in the spread, spike your stop losses, hold on to your money longer than they should, I could go on and on. OR... Just go and get yourself (and your hard earned savings) in the mud because someone dangled a 30 buck carrot in your face. Be smart, learn to trade, forget the carrots....
Hmmm...
  • #50
  • Feb 13, 2017 1:36am Feb 13, 2017 1:36am
Quoting meyoik
My rule of thumb...If a broker offers bonuses, I can't take them seriously......(same with Jim Carrey in dramatic roles)
Hey he was pretty good in Truman's World!!
Make your losses in demo. Earn your profits live.
  • #51
  • Feb 13, 2017 5:24am Feb 13, 2017 5:24am
Look at this way: If the broker is a good broker, i.e. a legitimate one, they don't need to hand out bonuses to attract customers. Do you ever see Ameritrade ever hand out certain % of bonuses just to entice you to trade with them? If it's a bad broker aka casino broker who's in it just profit from your losses then it has ALL the more motivation to give you bonuses so you can deposit more money and trade more money and then lose more only for them to pocket it call!!

So you figure out if it's only the bad brokers that hand out bonuses.
Make your losses in demo. Earn your profits live.
  • #52
  • Feb 14, 2017 2:35am Feb 14, 2017 2:35am
Quoting Forexia
Look at this way: If the broker is a good broker, i.e. a legitimate one, they don't need to hand out bonuses to attract customers. Do you ever see Ameritrade ever hand out certain % of bonuses just to entice you to trade with them? If it's a bad broker aka casino broker who's in it just profit from your losses then it has ALL the more motivation to give you bonuses so you can deposit more money and trade more money and then lose more only for them to pocket it call!! So you figure out if it's only the bad brokers that hand out bonuses.
Before you reply (if you will) then let me be very clear, I agree with you somewhat, so what I am going to say consider it as further inquire not disagreement over what you said. Now, I want to ask you if you are trading with broker that is absolutely honest every way and you will not want to change it at all. But, then there comes a new broker that too is fair and absolutely similar, they too want you to work with them, as obviously they too want to earn. How are they going to that? As there are no different versions or rating for being honest, it is similar lines, so what is that EXTRA that will make you think about them? If you consider bonus as bad or lollipop then what else do you think a broker could give or have for clients to try them? I will really want to hear more about it….
  • #53
  • Feb 14, 2017 4:43am Feb 14, 2017 4:43am
Quoting Fedricks
{quote} Before you reply (if you will) then let me be very clear, I agree with you somewhat, so what I am going to say consider it as further inquire not disagreement over what you said. Now, I want to ask you if you are trading with broker that is absolutely honest every way and you will not want to change it at all. But, then there comes a new broker that too is fair and absolutely similar, they too want you to work with them, as obviously they too want to earn. How are they going to that? As there are no different versions or rating for being...
There are SO MANY different ways to attract a customer in the investment business without having resorting to using bonuses. What do we look for in a broker? Excellent customer service, fast, reliable, sophisticated and feature-rich platform(s), low commission and other fees, fair and honest dealing policies, regulated in a country with sound and effective regulatory bodies and etc., etc., etc.. The list is endless; I can go on all day on how a brokerage house can distinguish themselves to set themselves apart to attract new customers from their competition. Just like any other business, the better service you offer, the more customers you will attract and brokerage service is no exception. Now I am NOT saying that as an honest broker you absolutely cannot give out bonuses to entice new customers. Sure if you want to, nobody will stop you but what I am saying they would have NO incentive to do so and don't need to. They are in the business to make money if they are already getting customers WHY do they still have to pay for customers to give them business?

WHY don't they need to use bonuses? Because 1) they are indifferent as to what the signing bonuses will do to affect their profitability; they are not trading against the clients, whether the client wins or loses makes no difference to them and 2) they get remunerated as long as they forward their brokerage service. As long as customers trade, they get their commissions and they can charge other fees when they see fit but how much a customer trade on a transaction really does not make difference to them; a customer who trades $100 more using their bonus money is NOT going to generate that much more revenue for them as their business model is designed that as long as they do their job, they get paid and they get paid handsomely.

But the market-making or the casino model of brokerage business is different. The amount of their revenue is directly linked to how much a client trades and thus how much he/she loses so they have EVERY incentive to use bonuses to get customers because their business model of market-making where they take the other side of the transaction of their clients hinters on the fact that the client loses for them to make a profit since it was them who traded against their clients so besides investing in mechanisms to make sure their clients lose as frequently as possible just like casinos, the amount that their clients trade also becomes important. The more the client trades, aided by the bonuses given out, the higher amount he/she loses especially when there is leverage involved to amplify further the losses, very much the same as the casinos where they give you money to entice you to play in their casinos, same deal. And it's not surprising that in those market-making, casino brokers, the leverage are also outrageously huge like 2000:1, $1 can control 2000 times of capital.

Hope this helps.
Make your losses in demo. Earn your profits live.
  • #54
  • Feb 15, 2017 12:13am Feb 15, 2017 12:13am
Quoting Forexia
{quote} There are SO MANY different ways to attract a customer in the investment business without having resorting to using bonuses. What do we look for in a broker? Excellent customer service, fast, reliable, sophisticated and feature-rich platform(s), low commission and other fees, fair and honest dealing policies, regulated in a country with sound and effective regulatory bodies and etc., etc., etc.. The list is endless; I can go on all day on how a brokerage house can distinguish themselves to set themselves apart to attract new customers from...
Thank you mate for writing it in such detail manner, i too agree with absolutely 95% part there. I too believe that usually, it's not required to have BONUS or even for brokers to give bonus, as a real trader would hardly require extra capital. Same way as you already explained, it's also fair to say that great brokers won't need bonus that much. However, i will still keep it that it's not guarantee that a broker offering bonus scam or hard to trust, but most are.
  • #55
  • Feb 15, 2017 2:59am Feb 15, 2017 2:59am
Quoting Forexia
{quote} There are SO MANY different ways to attract a customer in the investment business without having resorting to using bonuses. What do we look for in a broker? Excellent customer service, fast, reliable, sophisticated and feature-rich platform(s), low commission and other fees, fair and honest dealing policies, regulated in a country with sound and effective regulatory bodies and etc., etc., etc.. The list is endless; I can go on all day on how a brokerage house can distinguish themselves to set themselves apart to attract new customers from...

Well said I can add that deposit bonus can attract only newbies that have never traded or always lose money. If I see any deposit percentage bonus, I know that broker is market maker that want take whole deposit. Moreover it's not easy to test broker, because many MM will let you trade without any issues, earn $1000 and withdraw without any problem, but try to make $10000000 which is more that broker is worth If broker takes commission and forwards your trades this broker will love you as client, market maker won't allow you to earn such money.
  • #56
  • Feb 15, 2017 12:31pm Feb 15, 2017 12:31pm
Quoting Forexia
{quote} Hey he was pretty good in Truman's World!!
Ha ha, that was OK
  • #57
  • Feb 15, 2017 1:23pm Feb 15, 2017 1:23pm
I use credit bonus from Hotforex for news trading it shifts stop out level to the level of zero deposit. That helps me to withstand more drawdown thus increasing chances to record a winning trade.
  • #58
  • Feb 15, 2017 1:24pm Feb 15, 2017 1:24pm
Quoting insomniawawa
{quote} Well said I can add that deposit bonus can attract only newbies that have never traded or always lose money. If I see any deposit percentage bonus, I know that broker is market maker that want take whole deposit. Moreover it's not easy to test broker, because many MM will let you trade without any issues, earn $1000 and withdraw without any problem, but try to make $10000000 which is more that broker is worth If broker takes commission and forwards your trades this broker will love you as client, market maker won't allow you...
Especially in forex trading where everything is traded in OTC and the broker is a market-maker who trades against you then yeah it would have every incentive to give out bonuses to make you trade more. If it's a ECN broker with that investment product traded on central exchange, if that broker still chooses to give out bonuses although I will still be skeptical especially that their business model really doesn't require them to give out bonuses and giving out bonuses really doesn't help them in any way but I will tend to give them the benefit of the doubt.
Make your losses in demo. Earn your profits live.
  • #59
  • Feb 15, 2017 1:26pm Feb 15, 2017 1:26pm
Quoting Fedricks
{quote} Thank you mate for writing it in such detail manner, i too agree with absolutely 95% part there. I too believe that usually, it's not required to have BONUS or even for brokers to give bonus, as a real trader would hardly require extra capital. Same way as you already explained, it's also fair to say that great brokers won't need bonus that much. However, i will still keep it that it's not guarantee that a broker offering bonus scam or hard to trust, but most are.
OMG!! I wrote that comment way too late into the night. I was talking like I was drunk, keep repeating myself like that. I gotta get more sleep. Thanks for your compliment and tolerance.

All the green pips to you!
Make your losses in demo. Earn your profits live.
  • #60
  • Feb 17, 2017 3:24am Feb 17, 2017 3:24am
Quoting Quushey
{quote} A good traders know math. Bonuses are just one part of the equation..
Exactly and those who doesn't wish to avail these bonuses are always have an option to continue trading without availing any of these bonuses, imo!
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