Just a few years ago it was almost impossible to encounter a broker that was supplying live accounts with 10 or 30 USD with no deposit required. Some brokers were using such campaigns for a very limited time and you could probably find out about such a campaign when it had already expired. Nowadays, there are some brokers that have a no deposit bonus campaign running with no time limitation. This means that by signing up with a broker and (usually) verifying your phone, you are getting access to placing live trades, making real profits with no deposit required.
So what’s the catch?
This can of course sound attractive, as you can literally make money out of luck. When you are a beginner trader, this may sound very lucrative, as you are skipping the whole process of learning on a demo account. However, it is not that easy. Usually, when having a no deposit bonus, your account size will be too small. This way you will end up totally removing risk management from your strategy, as you wouldn’t be able to allocate sufficient margin.
From another angle, you should value your time. Foreign exchange is a market where you can generate substantial losses and profits, due to high leverage offered. This is why you can easily expect a 10-20% return per month, if your risk management is sound. But would such a rate be worthy out of a sum of 50 USD? Not really, as wasting your time for 5 USD per month doesn’t make sense.
Starting with a demo account
This is why it is suggested to never skip demo account trading. Whenever you are looking to enter the world of forex traders, go get a demo account with a deposit similar to the one you want to make on your live account. Trade exactly for a month and then decide if trading is right for you. Should you decide to go for it, don’t waste your time for no deposit forex bonus deals.
Apart from that, no deposit forex bonus deals can be quite fun. Yet it should never be your main account. If you see a nice no deposit offer from one of the brokers – go sign up and get free money. Why not? You can use this account for making stupid trades, the one you want but would never make on your regular account. It is also a great way to gamble on NFP releases, as you can blow the account without worrying about your funds or generate some nice extra pocket money.
The rule of thumb is – don’t substitute demo with a no deposit account. Use no deposit account in conjunction with a live account.