Types of Online Stock Trading Promotions
Many brokers provide different types of trading promotions. They serve not only to attract new customers but also to help them build a solid portfolio in less time. Users can choose from a variety of brokerage bonuses. Some of the most popular stock trading promotions include referral and deposit bonuses, welcoming packages, no-deposit offers, and more.
With all the variety of bonus offers, only a few of them are worth using. So, do online stock trading promotions really help in building an investment portfolio fast? Or are they nothing but a trick to attract more traders? Let’s find this out.
How Stock Trading Promotions Work
The type of promotion depends on the broker’s specialization and specific situation. For example, some platforms offer fee-free investing opportunities instead of cash. Others provide extra funds to match the first deposit or every time you want to reload the balance. Some companies deliver free stocks as part of the loyalty program, and so on.
The main thing you should know is that the majority of these promotions are not the best idea for getting free bucks. Besides, the bonus size is generally quite small. No matter how much money a broker offers, the amount of free cash hardly exceeds 1% of the deposit size. We should also take into account extra commissions, fees, and wagering requirements that generally erode the bonus value.
Luckily, not all bonuses work the same. Some of them can still be a great incentive. This mainly refers to the welcoming promotion and deposit or reload bonus that can sometimes be up to 200% match. Now, let’s have a closer look at all types of online stock trading promotions to select the one that meets your requirements.
up to 200%
from 0 pips
Trading platform
Types of Online Stock Trading Promotions
As stated earlier, types of trading promotions and brokerage bonuses can vary. However, a set of baseline offers generally involves the following:
- Deposit Bonus. Also known as the reload bonus, it is a deposit match provided as free cash to the balance every time you fulfill it with new funds. As a rule, brokers offer not more than a 100% deposit match. However, in some unique cases, users can benefit from a 200% match or even higher.
- No-Deposit Bonus. This promotion type looks like a good option for those who want to trade using free cash with no depositing. It offers a great chance to try out the platform as well as test a chosen strategy in real-time. Unlike a demo account, where you will trade on real money with zero risk. The only problem is that wagering requirements and extra commissions usually override your profit opportunities.
- Sign-Up Bonus. You may also know it as a welcome offer generally used to attract new customers. It is very easy to claim. The money will be automatically transferred as soon as you have successfully registered. In some cases, you may need to enter a promo code right after the sign-up process.
Note: always check bonus terms and conditions before claiming a promotion. Choose the one that suits you and your trading style. Do not ignore loyalty and reward programs, as they can open extra features.
How to Claim Stock Trading Promotions
To claim your bonus, you will need to complete several simple steps. The process may vary depending on the trading promotion type. Some offers involve pasting a promo code or using a coupon. Once again, make sure you clearly understand all bonus terms and conditions.
The process of claiming your bonus is as follows:
- Select a trusted broker and avoid scams. The platform comes first. The go trading conditions and instruments are available. A bonus is hardly a crucial parameter to consider when selecting a trusted website.
- Select the type of promotion. Depending on the bonus types we have described earlier, decide on the one that meets your needs.
- Complete all required actions and claim the bonus in the deposit or promotion section. Some bonuses require direct support engagement to be provided. Make sure the website offers fast and simple ways to get in touch with managers.
The Bottom Line
It does not matter what type of bonus you choose. Your strategy should never rely only on the idea of cashing out the promotion. This tactic is doomed to failure. The idea is to choose an offer that can slightly increase your chances of getting a quick buck with no effort. Try to adapt a bonus to the trading strategy to make the most of it.
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.