How a brokerage company offers deposit bonuses to traders

How a brokerage company offers deposit bonuses to traders

How a brokerage company offers deposit bonuses to traders: Here a doubt arises in the minds of potential traders that how they can get the deposit bonus. It is in question that traders cannot find enough evidence on how to get forex deposit bonuses. After the hard work of some observers, it is the fact that many brokerage firms are willing to give their clients a welcome bonus in the form of a forex promotion that seems surprising.

How does this cheap route fit into the brokerage business strategy?

Well, no word will deny the bonus. Most businesses don’t have their own budget for advertising, in which case bonuses can be a perfect alternative. Brokerage firms are no exception to this. So, instead of spending your budget on a series of online ads, why not give a portion of it to merchants to attract new customers.

Bonuses in Forex Trading It sounds interesting, doesn’t it? In some cases, it is very effective as an advertising strategy.

In many cases, this is the most effective method of advertising. But, this kind of advertisement cannot be considered a game, why? Traders can legally claim the deposit bonus without any conditions. Keep in mind that deposit bonuses are promotional offers that reach thousands of people.

The company will spend the deposit bonus money only on those who have opened an account and deposited money. This can be considered as cashback bonus for you. The brokerage company offsets those costs through increased revenue:

• spreads
• Commission
• Swap payment

Some Forex commentators suggest that brokerage firms may spend 1/4 of their income on spreads, bonuses and advertising while retaining the remaining 3/4 for other activities. This is more of a rule of thumb and each brokerage firm has its own policies for advertising expenses.

However, it indicates that by the end of the day, brokerage firms earn 3 times more than what they spend on bonus offers. Therefore, it is not surprising that these companies are in a position to offer such incentives to their traders.

Finally, it is worth mentioning that for many brokerage firms, retaining existing clients is also an important priority. Thus, they offer a “reload bonus”. This gives their clients a good incentive to continue trading with the same broker – this is very important for the long-term financial performance of the brokerage firm.