How Brokerage Company Offer Deposit Bonus To Traders

Here is the doubt of the potential traders, how they can get a deposit bonus. It has been in question traders can’t get enough proof of how they can get a forex deposit bonus. After all the hard work of some observers, it is a fact that many brokerage companies are willing to offer a welcome bonus as a forex promotion to their clients that is seemed surprising.

How does this giveaway fit to brokerage business strategy?

Well, nobody would refuse the term bonus. The majority of the businesses don’t have their budgets for advertising, in which bonuses can be a perfect fit for the alternative to that. Well, brokerage companies are no exception to that. So, instead of spending your budget on the category of online advertising, why not give a portion of it to the traders to attract new clients.

That sounds interesting, right? In some cases, this is very effective as an advertising strategy.

In numerous cases, this is the most effective method of advertising. But, this kind of advertising can’t be considered a gimmick, why? Traders can legitly claim the deposit bonus with no conditions. Keep in mind that deposit bonuses are promotional offers that reached thousands of people.

The company will be spending money on the deposit bonus only on those who have opened an account and deposited funds. This could be considered a cashback bonus for you. The brokerage company offsets those expenses through the increased income from:

• spreads
• commissions
• swap payments

Some Forex commentators suggest the brokerage companies may spend up to 1/4 of their revenue on spreads, bonuses, and advertising while maintaining the remaining 3/4 for other pursuits. This is like a rule of the thumb and each brokerage company has its policies for advertising expenses.

However, it suggests that by the end of the day, the brokerage companies earn up to 3x more income compared to how much they spend on bonus offers. Therefore, it is not surprising that these companies are in a place to offer these types of incentives to their traders.

Ultimately, it is notable that for many brokerage companies, retaining the existing clients is also a very significant priority. Thus, they offer “reload bonuses”. It gives their clients a good incentive to keep trading with the same broker – this is very important for the long-term financial performance of the brokerage firm.

If you are not yet an earning trader, you must know all these!