The Cambridge English Dictionary defines the word bonus as ‘an extra amount of money that is given to you as a present or reward for good work as well as the money you were expecting’.
Now imagine a bonus where no hard work is required to receive it — doesn’t that sound like a utopian concept?
It’s amazing how often in life we can claim such a reward. Banks that offer us money to switch our accounts to them, grocery stores that offer money off our first order when we place an order for home delivery, sportsbooks that will hand us free bets just for opening an account. There are plenty of examples available.
When it comes to trading stocks, commodities and foreign currencies, we can also make the most of such a welcome bonus via our selection of a reputable broker. These online brokers will enhance our bankroll with extra funds, so we can put them to good use in our execution of buy and sell orders.
Of course, we have to point out that many of these bonuses do come with strings attached — these trading requirements will dictate the terms and conditions involved. It should also be said that not all trading brokers offer a welcome bonus to new customers.
For those that do, how do welcome bonuses work and how do we claim ours?
Do Trading Brokers Offer Welcome Bonuses?
Think of a welcome bonus as a carrot to lure you in — banks, supermarkets, cinemas, online casinos… they all offer them.
It’s a mutually beneficial deal, because they benefit from welcoming you as a new customer and you get your hands on some kind of perk… usually financial.
From the perspective of a trading broker, they will offer you extra funds to trade with. So you benefit from some ‘risk free’ finance, while they benefit from knowing that you will make a deposit and pay them commissions or fees on the trades that you make.
The holy grail of welcome offers is the no deposit bonus. This is exactly as the name suggests, with a one-off payment made into your account that you will be handed just for registering your details.
This is the perfect ‘try before you buy’ system, so you can get used to the broker and their software to see if you like what they have to offer. If you don’t, you can walk away with no obligation and not a single cent spent.
So there you have it: a broker’s welcome bonus is basically free capital that you can use to get your trading career up and running without any risk to your own hard-earned money. There’s strings attached, as we know, but in truth, there are few negatives to worry about — the initial definition of the word ‘bonus’ remains intact!
How do I claim a welcome bonus?
In order to activate your welcome bonus with a trading broker, there’s a few different avenues you might have to explore.
The first is a promo code, which you will either find on the internet somewhere or that will be provided to you directly by the broker themselves. As you go through the account sign-up process, you will be asked to enter your promo code in a box on the screen — this will trigger your welcome bonus.
Alternatively, you may have to opt into the bonus after signing up for a new customer account. This can typically be done by dropping a message to their support team, who will then activate the bonus and add the funds to your account accordingly.
The advantages of a welcome bonus
The perks of claiming a welcome bonus speak for themselves, but when trading, the importance of accessing this capital is vital, particularly if you are new to the world of investing.
As we know, the stock market can be a volatile place — as can trading cryptocurrencies, forex, commodities and other assets. It can take some getting used to, and many newcomers to trading go through a learning curve during which their early entries into the market might not be overwhelmingly successful.
The funds raised by claiming a welcome bonus can be essential to that learning process. You can practice opening and closing positions, try out different trading techniques and strategies with no risk to your own money. Consider the welcome bonus to be your payment for undergoing the learning process.
Many profitable traders started from such humble beginnings, so we should never underestimate the importance of claiming a bonus where possible.