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Bonuses

Introduction

Here you can find some more information on what cTrader Bonuses are and how they work. cTrader bonuses work the same way for every broker. Even though cTrader Bonuses are clear and transparent, this guide should not be considered an alternative to reading your Broker’s Terms & Conditions, it is important you understand their policies.

Brokers and Introducing Brokers with access to the cTrader IB Center are able to give Bonuses to any of their clients. Bonuses can be converted into Balance depending on each broker’s settings.

Some important definitions:

Active Bonus” is the Bonus amount which can be used to open positions by adding it to the account's Equity. The amount of Active Bonus can not exceed 100% of the accounts unrealized Profit & Loss + Balance (Cash Equity), therefore this value will fluctuate according to live conditions.

Available Bonus” is the total amount of Bonus that has been added to the account, this value is only affected if Bonus is converted into Balance or more Bonus is added to the account.

Interface

Any Live cTrader account which has received a bonus will see a new Bonus Tab along the Deal Watch section of the platform. Any new bonuses will be displayed with a number, highlighted in green The number represents the quantity of new Bonuses since this tab was last viewed. Once you enter the Bonus Tab and view your new Bonus it will no longer be highlighted.

Awarded Bonuses are added as a deposit inside the Bonus Tab, any bonus which has been converted into Balance will be taken from your Total Bonus as a withdrawal.

This converted Bonus will be added to your Balance as a deposit, this transaction can be found inside the “Transactions Tab”

  • ID - Unique ID
  • Time - The time that this event occured
  • Type - If it was a deposit or withdrawal
  • Amount - Amount that was deposited or withdrawn
  • Note - Note added by the Broker or IB when the bonus was added. The note “Bonus conversion” is always used when bonus is withdrawn.

The summary at the bottom of the Bonus Tab includes three parts.

Unrealized Bonus (Equity Only) Total / Active

The value on the left represents the total amount of Bonus which could be active and could be converted into Balance. The value on the right is the amount of Bonus which is active and can be used for trading.

Conversion Ratio

This is the conversion ratio your broker has set. It tells you how much volume must traded to convert 1 USD of your bonus into Balance.

From the example below you can see $200,000 USD must be traded to convert 1 USD of total Bonus into Balance.

This ratio could be displayed as either a number of Lots or Volume of USD

Realized Bonus

This is how much Bonus has already been converted into Balance.

Using and Converting Bonuses

cTrader Bonuses are used in conjunction with Balance by adding it to the Equity of the account to open positions. Bonuses can not used instead of Balance. If an account's Balance is zero then so will be the amount of “Active Bonus”

Once a Bonus has been given it can not be taken away and and can not expire. The only way Total Bonus can be reduced is if it is converted into Balance. Your Broker will set the criteria for converting Bonus into Balance. If a Broker does not allow their Bonuses to be converted then the Total Bonus will remain inside the account indefinitely.

At the end of each day, at midnight UTC Bonuses will be converted if the necessary criteria has been met. Once a Bonus is converted it will be added to to the accounts Balance as a deposit and can be withdrawn, the amount of Bonus which was converted will be withdrawn from the accounts Available Bonus.

Because Bonuses are added to Equity they can be used to open positions and avoid reaching stop out. Because Active Bonus can not exceed 100% of the accounts Balance and Unrealized Net P&L this would mean that if the account Balance is zero so will Active Bonus.

cTrader Bonuses in practice

If an account contains $200 USD Balance and has no open positions, and therefore no unrealized Profit & Loss and has $1000 USD Bonus the “Unrealized Bonus (Equity Only) Total / Active” summary would appear like below.

Active Bonus will be $200 USD. The Active Bonus will be added to the accounts equity, as below

Balance remains 200, however Equity will be 400.

If the conversion criteria set by the Broker is 1 USD for each 200,000 USD traded and a position for 100,000 USD/JPY (or 1 Lot) is opened and shortly closed the criteria to convert 1 USD will have been met. After midnight UTC all of the above parameters will be corrected according to those conditions.

Total Bonus will become USD 999
Balance will become 201
Active Bonus will become 201
Equity will become 402

FAQs

What is the maximum size or number of bonus that can be received?

There are no limits on the size of bonuses or on how many can be received.

What if my account currency is not USD?

If your account currency is not in USD then everything is calculated in USD then converted to your account currency using the platform rate at midnight UTC.

If I withdraw do I lose my Bonus?

No, the Total Bonus will remain inside the account even if you withdraw all Balance from the Account. The amount of Total Bonus will remain inside the account, however this will affect the Active Bonus which in this case would be zero. If you re-deposit than you can reactivate your Bonus.

What if my balance is higher than my Bonus?

In this case your entire Bonus will be accessible meaning both Total Bonus & Active Bonus will be of equal value.

How is Equity affected when Bonus is converted into Balance?

cTrader Bonuses do not affect Equity negatively in any way. If Bonus is converted into Balance Equity will remain the same or increase, an increase in Equity will occur if an accounts Bonus is greater than Balance.