Broker's bonuses trap and how to cash in this free money
Bonuses can be really tempting as brokers are telling you that they can give a 30% or even 100% deposit bonus ! Well, they will give you your bonus but it is just a way of retain you as long as possible.
If they give you money for trading and if you agree this, then you do accept their bonus terms. And for the most part, they won't allow you to withdraw the money you deposited. For example, let's say you deposit $100 and they give you a $100 bonus. You make a few trades and you earn $20. Then you want to withdraw the $100 you invested, but they won't allow you to do it. It is your money but they don't want it to be withdrawn because they want you to trade a lot in order to earn commissions. So your money is blocked into the brokerage's account.
The good news is that you can make up to $500 just with bonuses without depositing a single dollar !
There are some brokers that are offering a registration bonus of $500. Of course, you can't withdraw it and you can only use it to trade. But let's be smart and use hedging to grab this bonus !
Simply open a trading account with another broker. Then make a market analysis and decide where price of any asset should go. If you think it will go up in the next days, then buy this asset with the second (your trusted broker) and open a short position with the broker that is offering you the bonus. You are hedged and wherever the market goes, you don't risk a cent. But, if the market goes up, you will lose your bonus and just making it appears on your trusted brokerage account.
Finaly, this is just using hedging to grab bonuses.
