Some FOREX and CDF brokers offer you a bonus when you sign up with them. They pay you the bonus when you deposit money to the account. These bonuses are designed to make the brokers money and it is often in your interest not to accept any bonus.
Many markets including the EU do not allow FOREX or CFD brokers to offer any bonus.
Why do brokers offer a bonus
Forex brokers offer you a bonus for the same reason that online casinos offer you a bonus. Both casinos and forex brokers do it in the hope that the bonus will make you register with the broker. That the promise of free money will lure you to register with the broker even though you might not have done so if they did not offer a bonus. Some brokers offer you a small free bonus so that you can try to trade risk-free but most brokers want you to deposit money into your account before they give you a bonus.
The bonuses can be small or large.
All bonuses are always designed to make the broker money. This is true regardless of how small or large the bonus is. The article is written about casino bonus but many much of the information applies to forex bonuses as well. Reading it will give you a better understanding of bonuses in general.
Why are bonuses banned?
Many, but not all, countries have banned Forex brokers from offering Forex bonus. Many brokers have completely stopped offering bonuses in all markets. This is due to many of their most important markets such as the EU and US have banned bonuses.
Bonuses have been banned because they are used to lure retail investors who lack the knowledge to understand what they are investing in. Retail investors who fail to understand the risk associated with leveraged trades. This is especially true in regards to CFD trading where you can lose more money than you deposited to your account. (EU limits the losses to the account balance).
Too many retail investors have been lured by the bonuses and potential profits without understanding the risk. Bonuses where banned to protect these investors. There has been talk about banning FOREX brokers from marketing their services to retail investors altogether.
Why you should turn down the bonus
It is usually better to turn down any bonus offered to you. The bonus is always associated with terms and conditions. You are often not allowed to withdraw any money from your account until these terms and conditions are fulfilled. Doing so can sometimes be hard and require you to trade a lot. Accepting a bonus gives the broker a reason not to allow you to withdraw your money until you have fulfilled the terms and requirements.
By turning down the bonus you are free to withdraw your money at any time. You can do so whenever you want for any reason.
Please observe that some brokers will automatically deposit a bonus to your account. Contact the support and make sure that they remove the bonus from your account before you make your first trade. If you make a trade with the bonus money in you raccount you will be bound by the terms and conditions of that bonus and you can no longer turn it down.