Bonuses are used to make you think you are getting something for nothing. This never happens in life, unless there is a catch.
Bonuses will always have “use and withdrawal conditions”, no matter what you think, nobody gives money away for free.
Generally the way it works is,
You will be offered a % of your initial deposit as a “free bonus” or “credits” or some other guise, it could be anything up to 100% of your deposit value.
So what happens next?
You must “trade”, and for every trade that you do, a % of your bonus will become withdraw able.
Easy, I hear you say, no problem. Yes however, most companies will insist that you cover the entire bonus amount, before “any withdrawal” of any funds including your own deposited funds. If you insist on withdrawing any of your funds, the “bonus will be removed” and you will withdraw from your deposited funds, not the bonus.
So how do you calculate how much you have to trade?
As a general rule its usually $10,000 (in the market) for every $1 of bonus. Why?
OK $100 (your money) @100:1 leverage = $10,000 (in the market)
Let’s say that the spread (the Brokers profit) is 3 PIPs, therefore each PIP is worth $1.00, 3 PIPs $3.00 total for this investment.
$2.00 for the company and a $1.00 refund from your bonus, basically they give you a 33.3% discount.
So in effect, to withdraw a $100 bonus you would need to trade $1,000,000 in the market.
Or, to withdraw a $1000 bonus you would need to trade $10,000,000 in the market.
Make sure that you ask for the “bonus conditions” before you accept it. Additionally have a think “do you really want it”?