Many platforms will use deposit bonuses and trading rebates to attract new customers. This type of promotion seems to be \"free money\", but when converted into actual transaction costs, the conclusion is often not what it seems. Bonuses often come with trading volume requirements, and rebates may encourage overtrading. This article calculates the true cost of this type of promotion.<\/p>\n
Conditions attached to the bonus<\/strong><\/p>\n Deposit bonuses are usually not given unconditionally: a common requirement is to complete a specified transaction volume within a certain period of time, and the bonus or corresponding profits can be withdrawn only after reaching the limit. In other words, in order to \"unlock\" this money, the spreads and handling fees you need to pay may exceed the bonus itself. In other words, the bonus is essentially exchanged for your transaction costs. Some bonuses will also limit the withdrawal ratio, or use the bonus as a risk margin - these details are not written into the trading plan, and it is easy to be stuck by unexpected terms during the actual offer.<\/p>\n The true cost of volume requirements<\/strong><\/p>\n Let\u2019s take a simplified algorithm: Assume that the bonus is equivalent to a certain proportion of the deposit amount, and M transactions are required to be completed within N months. Accumulate the spreads and handling fees corresponding to M lots and compare them with the amount of the bonus. You will find that many times you pay more \"in order to get the bonus\". This requirement is especially uneconomical if your trading frequency is already low.<\/p>\n The pros and cons of rebates<\/strong><\/p>\n Commission is a partial return of costs based on transaction volume, which can indeed reduce single costs for high-frequency traders. But the rebate has a side effect: it will encourage you to trade more, and more trading itself will increase the spread consumption. If the rebate ratio is not enough to cover the cost of doing more transactions, the book rebate will cover up the real losses.<\/p>\n Promotion and cost conversion ideas<\/strong><\/p>\n To judge whether a promotion is cost-effective, you can use a simple method: first calculate \"how much more transaction costs I have to pay in order to get it\", and then compare it with the value of the promotion itself. If the overpayment costs more than the promotional value, the promotion doesn't make sense to you. Note that this judgment should be based on your own transaction frequency, rather than looking at promotional numbers. Think about it this way: would you still be doing these transactions if it weren\u2019t for this bonus? If not, then it is not a benefit, but a hook to induce you to increase costs.<\/p>\n Reminder for newbies<\/strong><\/p>\n Newbies are most likely to be attracted by \u201chigh percentage bonuses\u201d but ignore the trading volume requirements behind them. It is recommended to treat promotions as additional information rather than the core reason for choosing a platform. The core is still: whether the spread is reasonable, whether the execution is stable, and whether the withdrawal is smooth. Whether promotion can be included in the cost depends on whether you will complete those transactions in the first place.<\/p>\n Take WMAX as an example: Look at promotion and cost rationally<\/strong><\/p>\n The relationship between promotions and costs is placed on the platform. WMAX will publicize the specific terms of its preferential policies, including transaction volume requirements, applicable varieties, time limits and other details. Traders can calculate their own accounts accordingly; the platform also provides transaction reports to facilitate comparison of actual cost changes before and after promotions; simulation accounts are suitable for verifying \"the real cost required to meet transaction volume requirements\" before deciding whether to participate. It should be noted that the promotional terms may be adjusted over time, and the latest announcement should prevail before participating. Whether WMAX is suitable for you depends on your clear judgment of your own trading frequency and cost structure.<\/p>\n write at the end<\/strong><\/p>\n Bonuses and rebates are not free money, but cost conversions with conditions attached. Calculate the transaction volume requirements clearly, compare rebates with the cost of multiple transactions, and treat promotions as additional information rather than reasons for selection, so that the cost account will not be biased by superficial numbers. Regardless of whether you choose WMAX or another platform, it is recommended to read the terms clearly before participating in any promotions and always keep the risk within an acceptable range. Leveraged trading carries high risks. Please fully understand the relevant rules before entering the market and make prudent decisions.<\/p>","protected":false},"excerpt":{"rendered":" Deposit bonuses and trading rebates seem to be free money, but when converted into actual transaction costs, the conclusion is often the opposite. This article dissects the trading volume requirements and withdrawal restrictions attached to the bonus, the overpayment of spread fees to unlock the bonus, and the side effects of excessive trading incentives due to rebates. It provides a conversion idea of \u200b\u200b\"overpayment cost versus promotional value\" and reminds novices to treat promotions as additional information rather than the core reason for choosing a platform.<\/p>","protected":false},"author":1,"featured_media":11449,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[122],"tags":[1770,1772,1771],"class_list":["post-11448","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tutorial","tag-1770","tag-1772","tag-1771"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.kpai1.cn\/en\/wp-json\/wp\/v2\/posts\/11448","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kpai1.cn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kpai1.cn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kpai1.cn\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kpai1.cn\/en\/wp-json\/wp\/v2\/comments?post=11448"}],"version-history":[{"count":1,"href":"https:\/\/www.kpai1.cn\/en\/wp-json\/wp\/v2\/posts\/11448\/revisions"}],"predecessor-version":[{"id":11450,"href":"https:\/\/www.kpai1.cn\/en\/wp-json\/wp\/v2\/posts\/11448\/revisions\/11450"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kpai1.cn\/en\/wp-json\/wp\/v2\/media\/11449"}],"wp:attachment":[{"href":"https:\/\/www.kpai1.cn\/en\/wp-json\/wp\/v2\/media?parent=11448"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kpai1.cn\/en\/wp-json\/wp\/v2\/categories?post=11448"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kpai1.cn\/en\/wp-json\/wp\/v2\/tags?post=11448"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}