Question by aerofreak: Why do foreign exchange brokers give away cash when opening an account?
Hi Guys,
I just opened a micro account with an on the internet forex broker, and they give away 100% of your initial deposit when opening a micro account. I just discovered this suspicious and wanted to know if this is normal, and why brokers would do this?
Thanks in advance!
Would this mean that i have to spend back these US$ 300, or are they “mine” and i spend them back through the spreads by trading?
Best answer:
Answer by Hops Aficionado
Because they know they are going to get it back. Exact same reason why casinos give away free of charge hotel rooms, flights, etc.
When I say get it back, I do not necessarily imply you happen to be going to lose all your income. Forex is high frequency trading, and even if you are productive in your trading they will make their cash back on the spreads.
Know better? Leave your personal answer in the comments!
3 Responses to “Q&A: Why do forex brokers give away money when opening an account?”
Why don’t you close your account and keep the $ 100 and then open a new account and you keep going until you are a millionaire?
What Hops Aficionado said is correct…
But some of them do have a catch, read the conditions for that money.
I had one that you had to pay it back. Needless to say, I did not signup with them.
Clients are Gold for them