A forex deposit bonus gives you the chance to get to know the market.

Posted by CesarMuler on March 15th, 2013

Forex trading, like any other human activity, requires effort and perseverance. This means that traders should familiarize themselves with the product, the trading platform and tools and then to devote time to assimilate new knowledge and experience. It is recommended that the beginners should not trade without acquiring first at least the basic knowledge required in the field. The first thing to mention is that a trader has to form an opinion based on which to open a position on the forex market. This can be done by participating in a forex demo contest.

Before you enroll in a forex demo contest you have to open a demo account. Trading on a demo account is an opportunity to acquire practical skills in the forex market and the stock market, and also it is a way to check if the trader profession suits you. Real and demo account are basically the same, except for the fact that trading on demo accounts does not require a financial investment. Another important aspect to take into consideration is the fact that if you work with different brokers on demo accounts you get to differentiate between platforms and brokers from the point of view of reliability.

A lot of traders start the activity in a forex demo contest because it implies no financial risk and, at the same time, it gives you the opportunity to learn all there is to know about trading, and why not, win the prize at stake. Some of the contest, though, require the participants to pay a small amount of money as a registration fee, but it usually is very small, about 5-6 $. The period in which the contest takes place could be short (a few days) or long (one month or even one year).

After having gained some experience, it’s time to move forward and take the next step: open a real account. A lot of brokers offer the forex deposit bonus at the time of the account opening. In order to receive it you have to make a minimal deposit in your account, and after that you’ll get a certain percentage of your initial sum. This percentage may differ from one broker to another. Just like in the case of the no deposit bonus, there are certain conditions and restrictions too. Usually the money is given only for trading purposes, this meaning that you can’t withdraw it from your account. Or you can get it only after a certain amount of trading. Generally, this type of bonus is accessed by more experienced traders and not by newbies, who prefer not to risk their own money.

Most inexperienced traders don’t make money in the long run because they simply make too many transactions. They are eager to become familiar with the trading system and, of course, to make money quickly. The best strategy is therefore to trade but only when you know exactly why you make that exchange. In time, excessive trading erodes the investor’s funds because of spreads and broker commissions which are paid at every deal. That’s why a forex deposit bonus is useful, as it gives you the opportunity to practice trading without spending your money.

First participate in a forex demo contest, then open a real account and get your forex deposit bonus in order to start trading.