South African Forex Brokers With Deposit Bonus

Many South African traders are looking for ways to trade with more capital than they own. To meet the needs of traders, various South African forex brokers offer deposit bonuses to boost the initial capital of traders. What is a deposit bonus, you ask? Well, this article explores what the deposit bonus entails. We will also go a step further and tell you some of the brokers in South Africa that offer deposit bonuses.

Understanding Deposit Bonus

A deposit bonus is a promotional offer that a brokerage firm gives new clients. The bonus is meant to entice traders to open accounts with the forex broker. Usually, the firms give the bonus on the first deposit only. However, some firms operating in South Africa offer the bonus on various other occasions when their traders make a new deposit. The latter is referred to as a reload bonus. The bonus can be either a fixed amount or a percentage of the initial deposit. Perhaps the biggest advantage of the deposit bonus is that it boosts client’s capital and allows them to open bigger positions.

How to Get a Deposit Bonus

The requirements for getting a forex deposit bonus varies depending on the specific brokerage firm. Generally, you need to sign up using your email and telephone number. You might also need to verify your identity by uploading your identification documents such as your passport or ID. Once you have opened a new account, you need to make an initial deposit. You will receive the deposit bonus typically within 24 hours. Some South African brokers offer the bonus instantaneously.

Forex Brokers Who Offer Deposit Bonus

AvaTrade

Regulation: FSCA, ASIC

Spreads: as low as 0,9 pips

Max. leverage: 1:400, Forex pairs: 55

Min. deposit: 100$

AvaTrade has a welcome bonus of 20%. To get the deposit bonus you have to make a minimum deposit of $200. In fact, the platform has an embedded calculator that shows you the amount of bonus you will get for each deposit. The maximum deposit bonus is $2000 for a $10000 deposit. For an amount higher than that you should contact the account manager. AvaTrade deposit bonus is available only to new clients and is credited to your trading account once you finish your deposit and get your identification documents submitted and verified. To withdraw the deposit you are required to execute a minimum trading volume of 10,000 base currency for every 1 base currency bonus within 6 months.

Trading Forex and CFDs entail risk. Your capital is at risk.

FP markets

Regulation: CySEC, ASIC

Spreads: as low as 0,1 pips

Max. leverage: 1:500, Forex pairs: 60

Min. deposit: 100$


FP markets offers a 20% deposit bonus. The deposit amount should be between $100 and $25 000. The deposit bonus is available for withdrawal after trading 20 lots for deposits between $20 and $100, 50 lots for deposits between $100 and $250, and 100 lots for deposits between $251 and $500. For deposits between $2000 and $5000, you must trade 1000 lots. All these conditions apply for the standard spread account. FP Markets allows you 12 months to fulfill the requirement. Otherwise, the deposit is deemed null and void. In addition, the company withdraws the bonus if the account turns negative or tries to make withdrawals without meeting minimum requirements.

Trading Forex and CFDs entail risk. Your capital is at risk.

Things to Consider Before You Apply for Deposit Bonus

Numerous forex brokers offer deposit bonuses, but should the deposit amount be the deciding factor when choosing the right south african forex broker? I say no, there are more important aspects you need to consider. For that reason, I have prepared a list of some of the most important aspects you should consider when opening a new brokerage account at any South African forex broker.

Commission Fees and spreads

Most brokers charge either commission fees or spreads (some also charge both). For this reason, these two fees should be very high on your priority list. You will want to avoid brokers who charge a high commission per trade or too wide spreads. While the commision fee could be as small as $5 this figure can add up quickly when you open several positions.

The same goes for spreads as each broker has unique policies which determine the spread. You should aim to work with a broker who offers competitive spreads. Spreads can make a significant impact on your trading results in the long run. A deposit bonus is not helpful if it will end up being consumed by high trading commissions or by too wide spreads.

Trade Execution

You should choose a South African forex broker who offers the best trading services. Otherwise, you will suffer from slow executions which can significantly affect your overall trading experience. For instance, you might notice a good setup, and place a trade.

However, the position may fail to exit soon enough or even get rejected altogether. For instance, during high-impact news, the price of an instrument can move hundreds of pip in a fraction of a minute. Therefore, a delay in execution could mean the difference between profits and losses.

Withdrawal Rules and Conditions

It is imperative that you investigate the broker’s withdrawal policy before going for the deposit bonus. Usually, the withdrawal of a bonus is based on the trading volume. This means you have to multiply the bonus amount before you are allowed to withdraw. For example, you may be required to multiply your bonus X5 before the bonus is available for withdrawal. This means you have to turn the $1000 bonus into $5000.

Other sites require you to trade a specific number of lots. The deposit bonus value is divided into lots and you must trade specified lots to make the deposit withdrawable. Lastly, other bonuses are tied to commissions. This means paying set commission amounts to withdraw the bonus. The withdrawal may also have a time limit. This means that you have, say 30 days or 6 months, to reach the target. 

The trading bonus may be a good thing to have, but you should also consider other factors. Put differently, you should be careful when choosing the broker. This means that you should know about the broker’s commission fees, spreads, and quality of trade executions. If you factor these aspects, the disadvantages may in the long run outdo the benefits. In this case, you should forgo the bonus altogether. 

Forex Brokers Who Offer Deposit Bonus

XTB

Regulation: FSCA, IFSC, FCA, KNF, CySEC

Spreads: as low as 0,5 pips

Max. leverage: 1:500, Forex pairs: 57

Min. deposit: 1$

XTB offers a 50% bonus on the first deposit. However, you should trade minimum lots equal to 15% of the first deposit amount within 60 days. To qualify for the welcome bonus, you should deposit more than $100.


Trading Forex and CFDs entail risk. Your capital is at risk.


Libertex

Regulation: FSCA, CySec

Commision fees: As low as 0.011 %

Max. leverage: 1:30, Forex pairs: 51

Min. deposit: 100$

Libertex offers a 100% deposit bonus on the first deposit. Traders can redeem the welcome bonus after depositing a minimum of $100 with a maximum bonus amount capped at $10 000. Everyday at 21:00 UTC, Libertex converts 10% of the trading commissions you paid when trading into real money. The maximum amount you can get from the commissions equals to 2% percent of the trading amount. Once this money is converted to real money you can withdraw it or do anything you please. You have 90 days to convert the whole bonus into real money.


Trading Forex and CFDs entail risk. Your capital is at risk.

XM.com

Regulation: IFSC, FCA, CySEC, ASIC

Spreads: as low as 0,6 pips

Max. leverage: 1:888, Forex pairs: 55

Min. deposit: 70 ZAR/5$


XM is a Belize-based award-winning and licensed forex broker. It has one of the most generous deposit bonuses in the market. XM offers a two-tier bonus starting from a minimum deposit of $5. First, you get a 50% deposit bonus capped at $1 000. This means you will receive a maximum bonus of $500. This is not a one-time offer; you get the bonus until you reach the maximum amount of $1 000. 


The broker also offers an additional 20% if you exceed $1 000. In this case, you are liable for a combined bonus of $5 000. To give you a clear picture, if you for instance want to get the maximum deposit bonus you would have to deposit $23 500 and you would get a $5 000 bonus ($500 for $1 000 and $4500 on $22 500).


If you decide to withdraw profits, a bonus amount proportional to the withdrawal will be removed. For instance, if you make a $1000 profit and withdraw 50% of the profit, 50% of the bonus will be removed. It is imperative to note that the bonus is not available for the XM shares account and the Ultra Low account. The XM deposit bonus is non-withdrawable, however, any profits generated on top of the bonus can be withdrawn at any point in time. Any withdrawal of funds will result in the proportional removal of your trading bonus.

Trading Forex and CFDs entail risk. Your capital is at risk.

FAQ – South African Forex brokers with deposit bonus

Types of Deposit Bonus

Some brokers offer fixed amounts for opening an account and making an initial deposit. For instance, you can receive about $100 after making the initial deposit. Alternatively, the broker may offer a percentage of the initial bonus.  For instance, you may receive a 20% deposit bonus after making a deposit.It is worth noting that brokers put caps on the percentage you can receive. For instance, if the bonus is limited at $5000, and you want to deposit $10000, you will receive a bonus based on the $5000 cap. However, your initial capital deposit will remain unchanged. 

Most forex brokers offer deposit bonuses only to new clients. Therefore, you will not receive a deposit bonus for subsequent deposits if you choose to stick with the broker. That said, some brokers understand that clients need to be rewarded every time they make a deposit. For this reason, they have reloaded bonuses. Therefore, they offer bonuses to clients every time they make a deposit. These reload bonuses are usually lower than the ordinary bonuses you receive with your first deposit. 



Conclusion

A deposit bonus is a special offer that traders receive after depositing funds in their trading account. However, you have to fulfill several conditions before the bonus can become available for withdrawal. Nevertheless, the bonus boosts the trader’s account,  protects their account from massive drawdowns and enables you to trade with larger positions. You should, however, ensure the other factors such as whether spreads and trading commissions are favorable before opting for a deposit bonus.