Broker deposit bonuses explained: the terms that can lock your money

"Deposit $500, get $500 free." A 100% bonus sounds like doubling your account. In practice, the conditions attached often decide when, and whether, you can take your own money out. Before you accept any bonus, read the terms as carefully as a loan contract.

Why the rules differ by country

In the European Union, the regulators' measures on CFDs for retail clients include a ban on monetary and non-monetary incentives such as deposit bonuses, so a firm authorised in Portugal shouldn't be offering one to a retail client. Generous bonuses are therefore most common at firms outside those rules, which often also means firms not authorised to serve Brazil (see CVM alerts explained). The bonus itself is a reason to check who is offering it.

The 5 clauses to look for

Clause	What it says	What it can mean for you
Trading volume	Withdraw only after trading X lots	Pushes you to trade more and bigger than your plan
Withdrawal cancels the bonus	Any withdrawal removes the bonus, sometimes the profits too	Your money is effectively locked until the target is met
Bonus counts as margin	The bonus supports open positions	When it is removed, positions can be closed by a margin call
Expiry	Unused bonus expires after N days	A deadline that rewards rushing
Discretion	The firm may cancel the bonus "at its discretion"	The terms can change against you

A worked example of a volume condition

A $500 bonus requires trading 1 lot per $1 of bonus before withdrawal: 500 lots. Assume an all-in cost of $7 per lot on a major pair.

Item	Value
Lots required	500
Cost per lot (spread + commission)	$7
Total trading costs	$3,500

Illustrative calculation, not an expectation of results.

To "unlock" $500 you would pay about $3,500 in costs, and take the market risk of 500 lots on top of that. Check real costs with your broker's contract specifications, and the cash value of each pip with the pip value calculator.

How to decide

• If the terms block withdrawals, decline the bonus or ask for it to be removed in writing before you deposit.
• Never let a volume target change your position size. Size every trade from the stop with the lot size calculator.
• If someone insists you must accept the bonus, read Pix and fake trading platforms: 6 scam patterns.

In short

A deposit bonus is rarely free: volume targets, withdrawal locks and margin tricks can cost more than the bonus is worth. Read the five clauses, and remember that a bonus is often a sign the firm works outside the rules that protect you.