The Forex Margin bonus is a popular concept designed to support traders’ opening positions and help them to rescue in the critical time of draw-down. However, this type of bonus is not very frequent and can only be found with the best Forex brokers with deposit bonuses. The margin support bonus is usually available on almost every kind of trading platform including MetaTrader 4, MetaTrader 5, Copy Trader, and even on some of the proprietary trading platforms of the brokers.
The margin bonus will have different terms and conditions depending on the Forex broker that a trader chooses. The most common types of margin bonuses are activated only once until they reach the limit and they are no longer available afterward. However, there are exceptions when brokers offer high-limit margin support bonus programs or alternative devices that serve as margin guardians. Most margin bonus programs are part of the deposit bonuses campaigns run by the brokers. We will review the best options available on the market for Forex bonus support margin schemes and how you can get them.
Margin bonuses are not used as trading funds. Furthermore, they do not help you during your profitable times. They only serve a purpose when your trades begin to go down. Usually, the Forex brokers with margin bonuses will activate the bonus program once you hit a certain percentage of your deposit on your trading balance (10%-20%). You are not liable for the losses that were protected by the margin support bonus. Furthermore, there is another type of margin bonus where the bonus amount cannot exceed your personal funds in any case. We can summarize the features of the margin bonus programs below:
Due to its nature, the margin bonus is often referred to as a rescue bonus, as well. It is intended to rescue from the times of draw-down. To give you an example of how the majority of margin bonuses work let’s assume that you deposit 100 US dollars and get a 30% rescue bonus from your broker. It means that now you can consider your equity to be 130 US dollars together with the rescue bonus amount. In case you lose 30 USD during your trades, the 30% will be removed from the bonus which would be 9 US dollars. In such a case, your total loss would amount to 21 US dollars instead of 30 US dollars. On your account balance, you would have 79 USD from your initial deposit available. Without the bonus, you would be left with 70 USD.
One of the best margin support bonus campaigns that currently exists on the market can be found with HotForex broker. HotForex has an extensive portfolio of deposit bonuses and one of them is a 30% Rescue bonus. The 30% Rescue bonus serves the same purpose as a margin support bonus that we described above. It applies to deposits over 50 USD or 40 EUR and can be applied to one account per client. The rescue bonus of HotForex cannot be withdrawn under any circumstances and it does not represent part of your equity.
The maximum total amount of the HotForex rescue bonus that can be claimed is 7,000 US dollars or 5,000 euros. However, it can be lost without any limitations. However, it has to be noted that any withdrawal from your account balance would result in proportional removal of the rescue bonus amount. For instance, if you remove 100 USD from your account, you will lose 30 USD from your total rescue bonuses respectively.
Claim your 30% rescue bonus with HotForex
In case you reach your total rescue bonus limit with HotForex and hit 7,000 USD in cumulative bonus amount you are eligible to receive an additional stop out bonus. From that point on, the broker allows you to generate 30% stop out rewards on your subsequent deposits. The maximum cumulative amount of the Stop Out rewards that can be claimed is 3,000 US dollars or 2,000 euros. However, stop out rewards are not activated automatically. Instead, the users have to request the program from the customer support of the broker.
Many leading brokerage companies have decided that margin bonuses are limited and will aid the traders for a limited period of time. Nevertheless, the clients might get used to trading with rescue bonuses and forget about the significance of losses. Therefore, after they run out of bonuses they will start losing a considerable amount of money. To avoid the increased risk on the margin of the traders, some brokers have started offering alternative solutions. AvaTrade has chosen one of the best approaches and developed a concept of AvaProtect.
Get protection of 1,000,000 USD with AvaTrade
AvaProtect is a special risk reduction tool that was developed by the AvaTrade Forex broker recently. The program has won numerous awards for its excellence in unique risk management features. This function allows traders to protect a specific trade against losses. The total size of the protection that traders can get with AvaProtect reaches one million US dollars over a chosen time frame. However, the AvaProtect function can only be enabled on the proprietary platforms of the broker – AvaTrade GO app which is available on Google Play and App Store as a mobile trading platform, as well as the WebTrader, supported on more than 90% of the browsers.
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