Welcome bonuses vs. Reload bonuses
Welcome bonuses are the bonuses that traders can receive when they open an account with the online broker and make their first deposit. Welcome bonuses (also known as sign-up bonuses) are given as an incentive to new traders so that they can try out their games. Welcome bonuses often take the form of a match bonus (100% bonus) where the brokers matches the trader’s deposit up to a certain amount. If the trader deposits $100, the broker matches with $100 on your account, so that you have $200 on your account to trade with.
Broker Bonuses
The main advantage of accepting a welcome bonus is that you can trade without solely risking their own money. The online broker takes part of the risk as well. The disadvantage of welcome bonuses is that you have to fulfill a high amount of wagering before you can cash out the bonus money. Online broker have to guard themselves against bonus hunting and as a result players have to play with their welcome bonus money a lot before a cash-out can be made.
Reload Bonuses are given to active traders who have made at least one deposit at an online casino, often as part of a Trader Rewards or VIP program. Reload bonuses (or loyalty or subsequent bonuses as they are also called) are offered to traders who have received a certain status due to a high amount of wagering as an incentive to continue trading at their website.
The main advantage of reload bonuses are that they are larger and that they have lower wagering requirements than welcome bonuses. As a rule of thumb you can assume that the higher status you have at a broker, the more attractive the bonuses you are likely to be offered. The large disadvantage regarding reload bonuses are that you will have to wager a lot and be a regular trader at one (or a few brokers) in order to receive these bonuses.
Cashable bonuses vs. Sticky bonuses
Cashable bonuses (or real money bonuses) quite simple refers to bonuses from an online broker that can be cashed out once the wagering requirements have been met. The majority of online broker bonuses can be cashed out, but not all.
The advantage of cashable bonuses are that you trade with real money which you eventually can withdraw along with any profits generated by the bonus. The main disadvantage is that cashable bonuses have sizeable wagering requirements attached to them to avoid abuse and to make sure that traders do not cash out bonus money before any real risk has been taken by the trader.
Sticky Bonuses (or trade bonuses) are bonuses that can be used to trade and win with, but they can never be cashed out. The bonus amount will be removed from the trader’s account so that only a profit generated by the bonus amount can be withdrawn. It is not unusual that sticky bonuses are 200% or 300% offers, but they only ”stick” to the trader until they are either lost or if you request a withdrawal.
The main advantage of sticky bonuses is that you get to try out a trading strategy with more money than without the bonus, thereby increasing the amount of action and excitement. The larger money sum on your trader account allows you more trade with maximum amount in the hunt for that huge profit . Losing a $200 bonus upon withdrawal does not matter much if you just profit say $10.000. There really is only one disadvantage worth mentioning, but unfortunately it is a big one. Sticky bonus money is never yours and never will be yours. It is money to trade with, not real money that can be withdrawn. Many traders stay away from sticky bonuses for this reason.
No Deposit Bonuses
The large majority of online broker bonuses require that a trader makes a deposit to an online broker account before he/she is eligible to receive a bonus. But some broker offer risk free gambling in the form of no deposit bonuses. No deposit bonuses usually takes one of two forms. The first type of no deposit bonus is a small and simple bonus, often around $10-15, where you can try out some trades and keep the profit after fulfilling some wagering requirements. The second type of no deposit bonus has a pre-determined time frame (often an hour) and an imaginary bonus amount. If the trader manages to make a profit, this will be moved to a real trader account and can be withdrawn once wagering requirements have been met.
No deposit bonuses are attractive to some traders because it is the only way you can try out a trading platform without risking any your own money. Who can say no to free money? There are a few disadvantages though. Brokers are private enterprises who do not just give away money to traders. First of all, no deposit bonuses have high wagering requirements attached. Secondly, most brokers set some sort of limit on how much money traders can win on a no deposit bonus. Last but not least, it is common practice that you have to deposit money to your trader account before you can cash-out a no deposit bonus from it.
Preferred Deposit Bonuses
Preferred deposit bonuses is a term used to describe a percentage bonus of around 5-15% given by some brokers if players use the broker’s favorite type on money transfer when funding their trader account. Some brokers have preferences with regards to how they would like to receive money from their traders. As an incentive to use this particle type of money transfer they reward traders who follow their wishes. Preferred deposit bonuses are usually given on the most used e-wallets such as Neteller, Moneybookers and Click2Pay.
From a trader’s perspective the advantage of this sort of bonus is straight forward: You have more money to trade with on your trader account. The disadvantage is that you have to use a specific type of money transfer to get the bonus. Few traders have accounts with all the major e-wallets and the best bonus at a certain brokers might just be with the e-wallet you did not choose to open an account with. It could also be that you are a citizen of a country where it is not possible to open accounts with the major e-wallets. Many e-wallets does not accept American customers after the passing of the Unlawful Internet Gambling Enforcement Act to mention an example.
Conclusion
As we have seen there are advantages and disadvantages with all forms of online broker bonuses. You need to weigh these positive and negative aspects up against each other before you accept a bonus. If you have clear preferences, you need to make sure that these can be met under the terms of the bonus. It is worth it to make some basic calculations regarding the wagering requirements that can ruin what otherwise looks like a great bonus as well. If cannot accept the terms and conditions regarding a broker bonus, you should not accept that bonus. It is perfectly possible to play without bonuses. Many traders do. If you trade without bonuses you have clear advantages as well. You will not have extra bonus money to play with, but there will be no bonus related wagering requirements you will have to fulfill. The choice is yours……
FirstDepositInsurance Team
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