Do Forex Bonuses Encourage Riskier Trading? | TU Research
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TU proprietary research suggests that Forex bonuses can influence retail trading behavior, although the effect is not uniform across all traders. In a survey of 1,450 Forex and CFD traders, 49% had accepted a trading bonus at least once. Among bonus users, 44% reported trading more frequently, 38% occasionally or regularly increased their position sizes, and 29% used higher leverage. 46% perceived bonus funds differently from their own deposited capital, while 42% said turnover requirements encouraged them to trade more than originally planned. The findings suggest that bonus-related trading risks are driven primarily by increased trading activity and promotional conditions rather than by leverage alone.
Forex bonuses have long been one of the most widely used marketing tools among online brokers. Welcome bonuses, deposit matches, cashback offers, rebates, and trading credits are designed to attract new clients and increase trading activity among existing ones. While these promotions can reduce the initial cost of entering the market, regulators have increasingly questioned whether financial incentives encourage excessive risk-taking by retail traders.
To examine this question, we conducted a proprietary survey of 1,450 retail Forex and CFD traders worldwide, analyzing bonus adoption, trading frequency, leverage, position sizing, trade selection, and the behavioral effects of bonus-related trading conditions.
The research aims to answer key questions:
Do traders perceive bonus money differently from their own deposits?
Do bonuses encourage traders to enter positions they would normally avoid?
Findings
Based on TU Research, several important patterns emerge regarding the influence of Forex bonuses on retail trading behavior.
Forex bonuses remain widely used among retail traders. Nearly half of surveyed Forex and CFD traders (49%) reported accepting a trading bonus at least once, although repeated use was significantly less common than one-time participation. This suggests that promotional offers continue to play an important role in client acquisition but are not necessarily a permanent feature of traders' long-term broker relationships.
Bonuses appear to increase trading activity more often than they increase leverage. Among traders who had accepted a bonus, 44% reported trading more frequently while promotional funds were available. By comparison, only 29% said they increased their leverage because of the bonus. These findings indicate that incentives are more likely to encourage additional market participation than to directly alter leverage decisions.
Position sizing changes occur primarily on an occasional basis. Thirty-eight percent of bonus users reported opening larger positions at least occasionally, while only 11% did so regularly. Most respondents said bonus availability did not materially change the size of their trades, suggesting that increased exposure tends to be situational rather than systematic.
Many traders perceive bonus funds differently from personal capital. Forty-six percent of bonus users acknowledged that promotional funds felt psychologically different from their own deposits. However, only 19% explicitly stated that they became more willing to take risks with bonus money. This suggests that psychological separation of funds is more common than openly admitted changes in risk tolerance.
Trading conditions attached to bonuses appear to influence behavior more strongly than bonus money itself. Forty-two percent of respondents said turnover or withdrawal requirements caused them to trade more than originally planned. This represents one of the strongest behavioral effects identified in the study and suggests that contractual bonus conditions may create additional incentives to remain active in the market.
Most traders do not fundamentally abandon their normal trading discipline. Although 35% reported entering trades they would not normally have taken, 42% said bonuses never influenced their trade selection. The findings therefore suggest that promotional offers primarily amplify existing behavioral tendencies rather than consistently creating reckless trading across the entire retail market.
Risk warning: Forex trading carries high risks, with potential losses including your entire deposit. Market fluctuations, economic instability, and geopolitical factors impact outcomes. Studies show that 70-80% of traders lose money. Consult a financial advisor before trading.
Institutional validation
The potential impact of Forex bonuses on trading behavior has attracted growing attention from financial regulators and academic researchers. While relatively few studies examine trading bonuses directly, both regulatory actions and behavioral finance research suggest that financial incentives can encourage greater trading activity and influence retail investors' perception of risk.
In its 2018 product intervention measures, the European Securities and Markets Authority (ESMA) concluded that promotional incentives, including trading bonuses, may influence retail investors' decision-making by emphasizing rewards associated with CFD trading. ESMA observed that such promotions are frequently linked to deposit or trading-volume requirements, which can encourage additional trading activity. These findings formed part of the rationale for restricting monetary and certain non-monetary incentives in the retail CFD market.
In its Report on Retail OTC Leveraged Products, IOSCO recognizes that the behavior of retail investors is shaped not only by product characteristics but also by the way leveraged products are marketed and distributed. The organization includes restrictions on certain marketing techniques – including promotional incentives – as one of several regulatory options aimed at reducing the risk of inappropriate product distribution, alongside measures such as leverage limits, enhanced risk disclosures, and conduct standards for intermediaries.
Academic research provides a behavioral explanation for these regulatory decisions. In their landmark study, Thaler and Johnson (1990) introduced the house money effect, demonstrating that individuals become more willing to accept financial risk after receiving gains that are perceived as separate from their own wealth. This mechanism helps explain why promotional trading credits may influence traders' willingness to increase activity even when their underlying strategy remains unchanged.
Another influential concept is mental accounting, developed by Richard Thaler (1999). The theory suggests that individuals mentally categorize money according to its source rather than treating all capital equally. Applied to Forex trading, this implies that bonus funds may be perceived differently from personal deposits, potentially affecting position sizing, trade selection, and overall risk tolerance.
Finally, Prospect Theory, developed by Daniel Kahneman and Amos Tversky, demonstrates that investment decisions depend not only on expected outcomes but also on how gains and losses are framed. Because promotional funds are often viewed as "extra" capital, traders may evaluate identical market opportunities differently when trading with bonus credits instead of their own deposited funds.
Theoretical research
The relationship between Forex bonuses and trading behavior can be explained through several established concepts in behavioral finance. Rather than changing market conditions, promotional incentives may influence how traders perceive available capital, assess potential outcomes, and make trading decisions.
One relevant concept is the house money effect, which suggests that funds perceived as gains or rewards may be treated differently from personal capital. A related theory, mental accounting, proposes that people mentally categorize money according to its source, potentially leading to different attitudes toward identical financial resources.
Behavioral research also highlights the role of incentive-driven decision-making. When promotional offers include trading or withdrawal requirements, traders may become more focused on meeting those conditions than on evaluating each trading opportunity independently.
Finally, Prospect Theory suggests that financial decisions are shaped not only by objective risks and rewards but also by how those outcomes are framed. Together, these concepts provide a theoretical basis for understanding how promotional incentives may influence trading behavior without implying that they affect all traders in the same way.
Survey data
To understand whether Forex bonuses encourage riskier retail trading, we conducted a proprietary quantitative study examining bonus usage, trading frequency, position sizing, leverage decisions, perception of promotional funds, trade selection, and the behavioral impact of turnover requirements.
While institutional research primarily focuses on regulatory restrictions surrounding trading incentives, this study examines how retail traders themselves report changes in their behavior after accepting Forex bonuses.
The research compares trader responses with established concepts from behavioral finance, including the house money effect, mental accounting, and incentive-driven decision-making.
Note: The findings are based on self-reported behavior rather than observed trading records. As with most survey-based research, responses may be affected by recall bias and subjective risk perception. The results identify behavioral patterns rather than causal relationships.
Methodology
The study was conducted using a structured online survey based on the CAWI methodology.
Sample composition: 1,450 retail Forex and CFD traders.
Coverage: North America, Europe, Asia, Latin America, Africa, and the Middle East.
Age: 18–60 years old.
Participation criteria: respondents who actively trade or have traded Forex or CFDs during the past three years.
Statistical confidence: 95%.
Estimated sampling deviation: ±2.5%.
Research team
The study was conducted by our experts:
Anastasiia Chabaniuk (Author, TU Research) – research design and interpretation.
Chinmay Soni (Fact-checker) – data validation and statistical verification.
Dan Blystone (Editor-in-Chief) – editorial and methodological supervision.
TU Research Team (Andrey Mastykin, Oleg Tkachenko) – data collection and analysis.
Have retail traders used Forex bonuses?
Forex and CFD bonuses remain one of the most common promotional tools used by brokers. Before analyzing their impact on trading behavior, the study examined how many respondents had ever accepted a trading bonus.
| Experience with bonuses | Share of traders |
|---|---|
| Yes, several times | 18% |
| Yes, once | 31% |
| No, but I have considered accepting one | 21% |
| No, never | 30% |
Insight: Nearly half of surveyed traders (49%) have accepted a Forex bonus at least once, indicating that promotional offers remain a common part of the retail trading industry. However, repeated use is significantly less common than one-time participation, suggesting that bonuses are primarily used as an acquisition tool rather than becoming a long-term component of traders' strategies.
Do bonuses increase trading frequency?
One of the primary concerns raised by regulators is that bonuses may encourage traders to become more active than they originally intended. Respondents who had accepted a Forex bonus were asked whether promotional funds changed how frequently they traded.
Effect of a bonus on trading frequency
I traded much more frequently – 13%;
I traded slightly more frequently – 31%;
It did not change my trading frequency – 51%;
I traded less frequently – 5%.
Insight: Almost one in two bonus users (44%) reported trading more frequently after receiving promotional funds. Nevertheless, most described the increase as moderate rather than substantial. This suggests that bonuses are more likely to increase market participation than fundamentally alter trading styles.
Do traders open larger positions when bonus funds are available?
Bonus funds increase available account equity and may allow traders to control larger positions. The survey examined whether respondents actually increased their position sizes while trading with promotional funds.
| Position-size behavior | Share of bonus users |
|---|---|
| Yes, regularly | 11% |
| Yes, occasionally | 27% |
| No | 57% |
| I do not remember | 5% |
Insight: Thirty-eight percent of respondents reported increasing position sizes at least occasionally. However, regular increases were relatively uncommon. The results suggest that additional capital encourages greater exposure primarily during selected trading opportunities rather than on a consistent basis.
Do traders increase leverage because of a bonus?
Leverage amplifies both profits and losses and represents one of the most important drivers of trading risk. The study therefore examined whether bonus availability influenced leverage selection.
Effect of Forex bonuses on leverage use
Yes, I used higher leverage – 29%;
No, I used the same leverage – 48%;
The bonus did not affect my leverage decisions – 17%;
I do not know what leverage I used – 6%.
Insight: Only 29% of bonus users reported increasing leverage, making this one of the weaker behavioral effects observed in the survey. Compared with trading frequency, leverage decisions appear to remain relatively stable for most traders, even when promotional funds are available.
Do bonus funds feel different from personal deposits?
Behavioral finance suggests that people do not always treat all money equally. Funds received through promotions, rewards, or unexpected gains may be perceived differently from personal savings. To examine whether this phenomenon exists in Forex trading, respondents were asked how they viewed bonus funds compared with their own deposited capital.
| Perception of bonus funds | Share of bonus users |
|---|---|
| I was more willing to risk bonus funds | 19% |
| They felt somewhat different, but my risk limits remained similar | 27% |
| I treated all account funds equally | 43% |
| I did not think about the distinction | 11% |
Insight: Almost half of bonus users (46%) acknowledged that promotional funds felt psychologically different from their own deposits. However, only 19% admitted becoming more willing to take risks because of the bonus. The findings suggest that while mental accounting is relatively common, it does not automatically translate into substantially riskier trading behavior for most participants.
Do bonuses encourage traders to enter trades they would normally avoid?
An increase in trading activity does not necessarily mean that traders abandon their normal decision-making process. The survey therefore examined whether bonus users entered positions that they would not normally have considered under standard market conditions.
Effect of Forex bonuses on trade selection
Frequently – 9%;
Occasionally – 26%;
Rarely – 23%;
Never – 42%.
Insight: Thirty-five percent of respondents said they frequently or occasionally entered trades they would normally have avoided, while another 23% experienced this only rarely. By contrast, 42% reported that bonus availability never affected their trade selection. These findings suggest that promotional offers tend to amplify existing behavioral tendencies rather than consistently override traders' normal decision-making processes.
PDF version of the TU research
Download the full PDF version of the TU research to access additional analysis, detailed survey data, and extended findings from our analytical team. The report includes complete methodology, charts, and behavioral insights referenced throughout the study.
Practical implications for traders
Several practical conclusions emerge from the research.
Bonuses should not be viewed as additional trading capital. Promotional funds may temporarily increase available margin, but they do not reduce market risk. Traders should continue sizing positions according to their own risk-management rules rather than the total account balance displayed after receiving a bonus.
Pay close attention to bonus conditions before accepting any promotion. The survey suggests that turnover and withdrawal requirements influence trader behavior more strongly than bonus funds themselves. Understanding these conditions before accepting a bonus can help traders avoid unnecessary trading activity.
Maintain consistent position sizing and leverage. Although only a minority of respondents reported increasing leverage or position size, these changes substantially increase potential losses. A bonus should not become a reason to deviate from an established trading plan.
Treat all trading capital equally. Behavioral finance shows that separating promotional funds from personal deposits may lead to different risk perceptions. Applying the same risk-management rules to every trade helps reduce the influence of psychological biases.
Choose brokers based on trading conditions rather than promotional offers. Regulation, execution quality, spreads, platform reliability, and investor protection remain considerably more important for long-term trading performance than temporary marketing incentives.
As traders evaluate brokers that offer bonuses or promotional programs, they should compare these incentives alongside broader trading conditions such as regulation, spreads, commissions, leverage limits, and execution quality. The list of the best Forex brokers below provides a convenient starting point for comparing regulated brokers that meet different trading needs.
| Trading.com USA | XM | RoboForex | Pocket Option | Moneta Markets | |
|---|---|---|---|---|---|
|
Bonus size, $ |
$100 | $30 | $30 | 50% | 20% |
|
Referal |
No | No | No | No | No |
|
No Deposit bonus |
Yes | Yes | No | No | No |
|
Welcome bonus |
Yes | Yes | Yes | Yes | Yes |
|
Deposit bonus |
No | No | Yes | Yes | Yes |
Trading.com USA - $100 No-Deposit Bonus
Trading.com provides a $100 no-deposit bonus for new clients who complete registration and identity verification. The promotional credit can be used for trading across available instruments, and all generated profits are withdrawable. The bonus itself is not withdrawable, but a portion of it converts into real balance based on trading activity: for every traded lot, $5 of the credit becomes withdrawable cash. The promotional funds remain active for 90 days unless trading requirements are met earlier. Conditions apply, including full account verification and adherence to platform rules.
- Register a real Trading.com account
- Confirm your identity and phone number
- Activate the bonus from the promotions section
XM - No Deposit Welcome Bonus $30
XM offers a regional No Deposit Trading Bonus for eligible new clients. Depending on the country of residence, traders may receive a $30 or $50 trading bonus after registering and completing the required account verification. The bonus can be used for trading, while profits earned from it may be withdrawn subject to the applicable trading requirements. Bonus availability, amount, and eligibility vary by region and are subject to the official terms and conditions.
- Register a new trading account
- Complete the account verification
- Claim the Bonus
- Complete the SMS verification
RoboForex - Welcome Bonus $30
RoboForex extends a welcome bonus of $30, or its equivalent of 3,000 cents, to new clients who meet specific program conditions. This bonus is exclusively available for ProCent and Pro accounts denominated in USD or EUR. One distinctive feature is that the bonus comes without any trading limitations or restrictions, offering flexibility for clients to use it in their trading activities. Moreover, the bonus can be withdrawn after fulfilling specified trading volume requirements within a 30-day validity period from the date of activation. It is essential to note that clients are eligible to receive this bonus only once.
- Open an account.
- Confirm your identity.
- Make a minimum deposit using a bank card.
Pocket Option - Get 50% Bonus
Pocket Option is offering a 50% bonus on deposits which can enhance traders' trading potential, both for new and existing clients. This bonus provides an extra financial advantage for their trading activities. To access this bonus, traders can deposit funds into their Pocket Option accounts, which will provide them with additional resources for an enriched trading experience.
- Open a real account.
- Complete the verification procedure.
- Deposit the required minimum amount.
- Redeem the bonus using the promo code 50START.
Moneta Markets - 20% Deposit Bonus
Moneta Markets' 20% Deposit Bonus allows traders to boost their trading balance with deposits ranging from $100 to $499. This non-withdrawable bonus is designed to increase trading power, making it easier to take advantage of market opportunities. Available exclusively to clients in Malaysia, this promotion enhances the trading experience by providing additional leverage while maintaining flexibility to withdraw any generated profits. This promotion is only available to clients residing in Malaysia.
- Open a live trading account.
- Deposit the required amount within the specified range.
- Complete the opt-in form on the 20% Deposit Bonus page.
- Begin trading once the bonus is credited to your account.
Data sources and methodology
Thaler, R. H. (1999). Mental Accounting Matters. Journal of Behavioral Decision Making, 12(3), 183–206
ESMA Decision 2018/796.
Thaler, R., & Johnson, E. (1990). Gambling with the House Money and Trying to Break Even. Management Science.
Kahneman, D., & Tversky, A. (1979). Prospect Theory: An Analysis of Decision under Risk. Econometrica.
Traders Union. Best Brokers With Trading Promotions And Bonuses.
Traders Union. What is a Forex bonus? Definition.
Traders Union. How to find the best Forex bonus?
IdSurvey. CAWI Methodology Overview.
Previous volumes in this series
Conclusion
TU Research makes it clear that Forex bonuses do impact retail trading behavior, mainly by increasing trading frequency and encouraging activity to meet promotional requirements, rather than drastically raising leverage or prompting reckless risk-taking across the board. Notably, 44% of bonus recipients reported trading more frequently, and 42% said bonus conditions pushed them to trade more than planned, highlighting that the real risks lie in the behavioral incentives attached to these offers. For example, many traders admitted treating bonus funds differently than their own capital, yet only a minority became outright risk-seekers. Ultimately, traders should remember that promotional incentives can subtly distort discipline and decision-making—a bonus may boost your available margin, but never your odds of success. To thrive, treat every dollar at risk with the same seriousness, regardless of its source.
FAQs
How do turnover and withdrawal requirements in bonuses impact trading behavior?
Do traders treat promotional funds differently from their own money, and what effect does this have?
Are repeated uses of trading bonuses common among retail traders?
Which behavioral finance theories help explain the influence of trading bonuses on risk-taking?
Editors' Top Picks and Insights
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Team that worked on the article
Anastasiia has 17 years of experience in finance and content marketing. She believes that the support of information and expert opinion is very important for the success of investors and new traders.
Dan Blystone began his trading career in 1998 as an arbitrage clerk on the floor of the Chicago Mercantile Exchange (CME). He later traded bond and Eurex futures at proprietary firms such as Altea Trading, gaining valuable experience in high-frequency trading and risk management.
Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data.
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