If the broker gives high bonuses, its a bad broker?

[daytrader-pro]

hi guys.

talked to some friends, and we were wondering: Only bad brokers need to give high bonuses, because the know ways to get the money back?? Whats your opinion?

im also by the way very spectical to high bonuses (no one gives things for free without reasons....)

[Enivid]

Not necessarily a bad thing. Usually, those bonuses have a lot of restrictions attached, so in fact they aren't giving out much.

[Easy Trader]

If a trader is looking for a broker and taking this buisness seriously, bonuses are the last thing he/she is worried about. From my own experience when I 'hired' my broker they matched me 1:1 on my deposit up to $5,000 for 4 months. Which to a newbie would seem great. But I couldn't withdraw that money it was only there as buying power, so in away I looked at it as a ploy to get me to use higer leverege than I would with my original deposit.

[Fxpipper]

Nope, not really. Most newbies do not bother to review the terms regarding the bonus [on how you cannot withdraw it right away or how it will be credited to your account only after X trades].
And yes, some shady brokers do use "high bonus" feature as a marketing strategy but to be fair, most of the brokers do not fall under this category. Do the research, check out the broker in question before joining up.

[hag.fx]

It's not necessarily a bad thing, just advertising, marketing...
Sometimes that seems to be necessary to pick up begginers in the market.
If bonus or sales were bad things, big corporations wouldn't still doing that.

[daytrader-pro]

Right I understand.. I ll open an bonus account and check.

[Fxpipper]

Er..you may want to check out the broker and the "bonus" before opening an account. Check online for reviews on the broker and make sure you review the "bonus" terms carefully before setting up a live account..

[Weizfx]

I don't think that just bad brokers give bonus. I mean, what is the different between a bonus and any other kind of advertisement. Traders have to understand that brokers have to do marketing and you use for this purpose the tools that we are all aware of. Anyways, don't expect to get rich from these bonuses. There are good brokers that publish bonus promotions and are good brokers, but also there are brokers that do not promote any kind of bonuses such as sunbirdfx and it is a good broker too, so I don't think that you can generalize all broker with this argument.

[Fxpipper]

Sure, you really cannot tar all brokers with the same brush just 'cause they hand out bonuses. For example, I got bonus with both Trader's Way and FXCM and they delivered on the offer and happy about it. I'm sure there are other brokers who do the same, bonus paid and happy customers.
But the irritating thing is that not all brokers state the terms of the bonus upfront [you have to really dig around to get some valid info] and as a result, the client is left feeling like he or she has been scammed.
And then, there's the other variety, where the "black hat" brokers use the bonus feature like a "bait and switch" option and run away with your money [bonus included]..
So yes, when it comes to opting for brokers with bonus offers, it pays to do the research..