The dark side to a forex broker deposit bonus

The dark side to a forex broker deposit bonus

Online trading has come a long way. We now find a lot of trading platforms that offer convenient apps that can be installed on the smartphones. So even during your daily commute to the office or just before you go to bed, when you are able to squeeze out a few minutes you would be able to study your trading portfolio. Take forex trading for example- this is one of the most popular trading options. And there are many online forex trading brokers. There are many benefits to choosing an online forex trading broker. But there is a dark side to all of these online brokers that most people do not talk about. While you come across an online forex broker, there might be many features listed as the advantages of choosing that broker. One such benefit is the availability of a deposit bonus. If you are falling for this feature, stop right now and think twice before you make a deposit.

Not all of them offer what they claim

Some forex brokers are very good at luring investors with their flashy ads and promises of making them rich. There are many that promise to make you a millionaire with a small investment. But the terms and conditions that are attached to the deal are what you should be aware of. Not all of them have their terms and conditions explicitly listed out on their websites. There are some that claim to offer extra features like say a demo account. But only after you signup would you know that you have to pay for everything and that there is no demo account. One perfect example is the case of Olymp Trade.

Then there is the mention of deposit bonus. The bitter truth is that once you make your deposit, the broker also deposits a portion of his funds in your account in the form of deposit bonus. So every investment you make from there is part yours and part the brokers. As the broker has also contributed to the capital being invested, there might be clauses about the ownership of the assets in some cases and those about the claim of profits in the others. One biggest threat is the difficulty in making withdrawals. As a part of your capital contains the broker’s bonus you might not be able to withdraw money from your account that easily and you might end up paying penalty for withdrawals beyond a limit. So even if you choose the most liquid assets you end up with your capital being stuck in the loop.