Forex is increasingly popular, but it is not a get-rich-quick scheme. Like any form of trading or investment, it involves risk. The global currency market is driven by fundamental forces, so no retail trader may influence its rates. Beginners are provided with different opportunities to build their skills safely, including deposit bonuses.
Every newbie starts by practising in the demo mode, which takes several months. Brokers that provide no deposit bonus forex trading let them enter the real market without funding their accounts. However, some users are hesitant to accept such offers. Is there a catch?
The bonus is provided upon registration. After creating an account, you may get a modest amount (e.g., $30) from the broker. It is credited to your balance instantly, allowing you to start trading. The system is reminiscent of typical online casino rewards, but Forex has nothing to do with gambling.
The bonus does not mean you should start buying or selling currencies without preparation. Any reputable broker emphasizes the importance of education and training in the demo mode. So, when is this no deposit offer suitable?
If you have some experience in Forex and would like to switch between brokers, this is a perfect opportunity to cut costs. You get some free money to make real trades. At the same time, you already have a good understanding of what you should do to make a profit in this market.
Can You Trust Your Broker?
Forex is a massive global industry, and it has some “bad apples”. No deposit offers may be used by scammers to lure in unsuspecting neophytes. Before accepting the bonus, research the background of the company to make sure it is legit. Here are the key things to check:
- License: is the broker licensed by credible organizations (The FCA, the CySEC, etc.), And is it authorized to work in your location?
- Reputation: does the company treat its clients fairly, and does it have any industry awards confirming its excellence?
- Support: will you have access to professional assistance whenever the market is open (24 hours a day five full days a week)?
What Markets and Assets Can You Trade?
Different brokers provide access to different assets. For example, large multinational brands usually offer Major, Minor and Exotic currencies, precious metals (spot trading), and CFDs on a plethora of markets. Some providers allow you to buy and sell shares directly.
A no deposit bonus from a reputable broker is a good start, but you must make sure the company will cater to your needs in the future. Even if you are only a beginner, you will diversify your portfolio eventually. To sum up, start with free demo trading if you are a complete rookie, and use no deposit bonuses to get started in the real market.