Trading Bonus — How This Added Feature by Your Broker Makes All the Difference

A trading bonus refers to the free money offered by different brokers as incentives to the traders who sign up. These bonuses tend to vary from one broker to another like the broker Hankotrade offers a 100 percent deposit bonus and a rescue bonus too, whereas some brokers do not offer rescue bonus at all. Thus, a bonus is different for each broker available. The feature is undoubtedly a very good addition for the traders in a number of ways. To understand how the trading bonus benefits, let us first know the most common types of bonuses available with the brokers.

1. Deposit Bonus — As can be understood from the name, the deposit bonus refers to the bonus offered by brokers when the trader after signing up makes a deposit in the account. The percentage of deposit bonus tends to vary with the brokers. The deposit bonus is usually a certain percentage of the deposit. There are many brokers offering up to a hundred deposit bonuses when it crosses a certain threshold. For example, hankotrade offers a hundred percent deposit bonus on a deposit of a minimum of 100 dollars. Suppose a user makes a deposit of 200 dollars as a deposit, it offers 200 dollars as a deposit bonus.
2. Rescue Bonus — Rescue bonus refers to a special type of bonus that helps in increasing the leverage in users’ accounts. This type of bonus is intended to protect users’ accounts from drawdown periods. Rescue bonus is not offered by most of the brokers.

In addition to the above, there can be a few other bonuses such as promotional bonuses, deposit match bonuses, and a number of others that differ with different traders. Now, let us understand how these bonuses from brokers benefit traders.

• Enhanced Trading Capital or Equity — Bonuses from the brokers play a significant role in increasing the trading capital or equity for traders to the extra amount gifted as a bonus by brokers.
• Leverage is Increased — With a bonus, there is more capital in users’ accounts and hence they can trade better position size, thereby increasing the chances of earning bigger profits. With the bonus amount, the users are in a better position for a greater advantage to trade since they are using a combination of their own funds and the awarded bonuses. This, in turn, eliminates the risk associated with increased leverage.
• Initial Investment is Lowered — The bonus amount helps users in lowering their initial investment, hence reducing the risk too. Like a trader makes a small initial deposit, combining the deposit with the bonus awarded by the broker to trade and supposedly loses, since the bonus amount is free, the loss would not matter much.
• Better Testing of a Trading Platform — If a user only wants to test a trading platform, the experience of trading on that platform, and the facilities offered, bonus amount proves to be beneficial. It is because the users can test the platform without a lot of investment from their pocket.

Now, it is clear how the feature of trading bonus offered by brokers makes a big difference. So, whenever you choose a deposit broker like Hankotrade, ensure that you make the best use of the bonus to bring about the desired changes in your trading.