No deposit bonus can be your gateway to free forex trading. Unfortunately, not all traders know how to use it wisely.
It is one thing to start forex trading, but maximizing your no deposit bonus is another matter.
No deposit bonus is one of the best promos you can get from your broker. This allows you to start forex trading without initial capital.
That being said, it doesn't mean you can trade irresponsibly. There are some things you need to understand before trading. Only then you can use your no deposit bonus to the fullest.
Here are five things you can do to make sure you don't waste your no deposit bonus.
1. Be Realistic
Be realistic and remember that bigger doesn't always mean better. If you understand this, it should be easy to follow this rule. When choosing the best forex bonus, the size of the reward is not the only measurement.
Does the same principle also apply with no deposit bonus? The answer is yes. When you choose a bonus deposit to protect your capital, it is important to choose the one with reasonable rewards. It's normal to use the same logic for no deposit bonus.
No deposit bonus was initially given at a reasonable price. Because of this condition, $5 to $30 was considered common for a no deposit bonus. However, tight competition between brokers changes this standard. Some brokers want to attract traders by offering unrealistic bonuses. While this promo sounds appealing for new traders, it comes with risks. When a broker offers a higher reward promo (especially no deposit bonus), their service might be questionable in terms of security and convenience.
Generally, their problem comes from unrealistic no deposit bonus terms and conditions. Sometimes it is almost impossible to keep. For example, to keep the bonus, traders must meet a quota of 5 traded lots. This rule is against the money management freedom a trader should have. While this can be normal for aggressive traders, beginner and conservative traders might find this quite hard.
To protect yourself against this kind of scheme, choose the best forex broker with a no deposit bonus of around $5 to $30. Try to avoid promo with more than $100 reward.
2. Read the Rules Carefully
This step is very important and it's best if you don't skip it. Basically, every bonus program comes with its own policy that might affect your trading flow.
Because of this, you need to pay attention to every term that comes with the no deposit bonus. Find out whether the promo has special conditions such as minimum leverage, spread change, minimum lot standard, and many more.
3. Treat It Like The Real Thing
The main idea of a no deposit bonus forex is to provide forex trading with no initial capital. Unfortunately, some traders often make mistakes by treating this promo like a demo account.
Getting free capital from the best forex broker can help you avoid real risk. However, it doesn't mean you can treat this bonus like a demo account.
No deposit bonus might get you real profit in your account, while a demo account doesn't. So when you experience some losses, they will actually reduce your money. Sadly, many traders think lightly of this promo. Some even use it as a free learning tool in real accounts.
It's better if you can use this bonus to gain profit and withdraw money from. To do this, trade like you are using your own money.
Never forget your initial motivation to apply in the no deposit bonus program. Just because it's free, doesn't mean you can slack off when planning the strategy and execute it.
If you can avoid this thought process, it will be easy to use this bonus promo as a method to trade forex with no money.
4. Take Advantage of the Withdrawal Rules
No deposit bonus withdrawal policy might be different from one forex broker to the others. Normally, it's almost impossible to withdraw a bonus from this program.
If they allow you to withdraw profits anytime, don't be afraid to take advantage of this policy. Do not hold the withdrawal process just because you want to meet the condition to withdraw the bonus.
It's because the rules are usually out of a small-cap trader's capacity and might increase your trading risk. If you are not careful, you might lose the profit you gain from the no deposit bonus.
5. Use It as a Milestone
If you want to be a full-time forex trader, having a clear long-term vision is a must. Even when you are using a no deposit bonus, it's better to have a carefully planned trading strategy.
Remember, no deposit bonus can be used as a starting point to build a promising trading profit. Furthermore, you can use this to test the effectiveness of a trading strategy.