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SpinDistribute.com Article Directory

The following article was published in our article directory on August 1, 2013.
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Using Forex Bonuses to Increase Profitability

Article Category: Finances

Author Name: James Smith

The forex market is one of the largest markets in the world. In fact, it is considered as an example of perfect competition because of its ability to hold huge trading volumes that represent large assets across the world. The market is also found in all the parts of the globe, making it easily accessible to anyone. It is also because of its vast coverage that there are many possible factors affecting the exchange rate leading to low margin of profit. Forex bonuses only add to the allure of trading. Bonuses are incentives given by brokers to their traders as a way to encourage them to trade using the same platform.

There are two general types of forex bonuses that brokers offer; the sign-up and the deposit incentive. The sign-up bonus is given to new investors to encourage them to trade for the first time. The amount depends on how much the firm is willing to give once the client decides to sign up and create an account. This would mean that the person will already have money in their account which they can use to start trading.

The deposit bonus is given when a client deposits more money into their account. For example, if a trader decides to invest $200 worth into their account, the broker can add 25% more to this amount. This kind of additional benefit is very attractive most especially if it is dependent on the amount to be deposited because the investor will view this as an opportunity to gain more profit.

There is also a trade execution incentive which is given for every trade that an investor makes. Compared to the first two incentives that are given without any active trading on the part of the client, this type of benefit drives the trader into aggressive trading because the amount he receives will depend on the trades he can make. The more he trades the higher bonus he will get.

The idea of leveraging also increases the traders' chance to receive additional benefits. Leveraging allows each person to make a profit using a small amount of investment. It is a type of loan extended by the broker. This means that if a trader is leveraged at 1:100, the client only needs to have a minimum cash investment of $1 and the broker puts up $99. Although the low level of leverage can provide an individual with many opportunities to succeed, it does not assure that there will be no losses at all. The forex market, after all, is volatile and unpredictable It is difficult for anyone to pinpoint which is a winning or losing position. Traders have to be fully aware that the exchange rate can go up or down anytime and the best way to manage risks is by having an effective trading strategy and a good market analysis.

Trading can be a lucrative source of income most especially if forex bonuses are taken advantage of. Investors would benefit well in looking for a trustworthy partner who will be able to give them forex bonuses.

Keywords: forex bonuses, binary options bonuses, forex training, binary options training, forex affiliate programs, binary options affiliate programs

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