Also known as:Funding Bonus, Match Bonus, Welcome Bonus
What is Deposit Bonus?
A Deposit Bonus is a broker promotion that credits extra funds to a trader's account as a percentage of what they deposit — commonly 20%, 50%, or 100% — so a $500 deposit under a 100% offer becomes $1,000 of usable margin. It is one of the oldest conversion incentives in retail brokerage.
Bonuses come in two broad forms with very different mechanics. A credit bonus adds to margin but usually cannot be withdrawn and often absorbs losses only down to a floor; a cashable bonus can be withdrawn once the trader clears a volume requirement, typically measured in traded lots. The terms and conditions define which one you are promoting, and they matter more than the headline percentage.
Key takeaways
Banned for FCA and CySEC retail clients since 2018 — offshore entities only.
The terms and conditions matter more than the headline percentage.
Bonuses raise effective leverage, so they amplify losses too.
Disclose withdrawal restrictions up front or expect scam accusations.
Regulation is the decisive constraint. Under ESMA and national rules, brokers regulated by the FCA (UK) and CySEC (EU) are prohibited from offering monetary trading bonuses to retail clients — a rule in force since 2018. As a result, deposit bonuses are almost entirely a feature of offshore or non-EU/UK entities, and a partner promoting one must know which broker entity and client region the offer legally applies to.
For a trader, the practical effect of a 100% bonus on a $500 deposit is roughly doubled margin, letting them open larger positions — which also amplifies both gains and losses. That amplification, plus withdrawal restrictions, is exactly why the terms must be disclosed clearly rather than buried under the headline number.
How it works
When a trader funds a qualifying account, the broker's system automatically credits the bonus amount as a separate balance line, keeping deposited cash and bonus credit distinct. The bonus inflates usable margin, so a trader can open larger lot sizes than their cash alone would allow.
Most credit bonuses are non-withdrawable and are consumed in a set order — typically the bonus cushions losses only after the trader's own funds are exhausted, or is removed proportionally on withdrawal. Cashable bonuses convert to real, withdrawable money only after a volume threshold, e.g. one lot traded per few dollars of bonus.
Because the bonus raises leverage indirectly, it also brings the account closer to a margin call: a larger position on a doubled balance can still be liquidated fast in a sharp move. The exact loss-absorption and withdrawal rules live entirely in the offer's terms and conditions, which is why partners must read them before marketing.
1
Trader deposits into a qualifying account
The offer applies only to eligible account types, regions, and (often) a first or specific deposit — set by the broker's terms.
2
Broker credits the bonus automatically
A separate bonus balance is added — e.g. $500 credit on a $500 deposit under a 100% offer — distinct from the trader's cash.
3
Bonus boosts usable margin
The trader can open larger positions than cash alone allows, amplifying both potential gains and potential losses.
4
Conditions govern withdrawal
Credit bonuses are usually non-withdrawable and may cushion losses to a floor; cashable bonuses unlock only after a lots-traded threshold.
5
IB earns on the resulting volume
Larger balances tend to trade larger volume, increasing the spread/commission rebates the introducing partner receives.
Why it matters for partnership: A high deposit bonus is a strong conversion trigger that pushes hesitant leads to fund, and larger balances mean larger volumes and higher IB rebates. But it is banned for FCA/CySEC retail clients, so promote it only for the correct entity and region.
Formula
Bonus Credit = Deposit Amount × Bonus Percentage
Real World Example
An IB promotes a broker's 100% credit bonus to an offshore-entity client. The client deposits $500 and receives $500 in non-withdrawable credit, trading on $1,000 of margin. The larger balance lets them trade bigger lots, raising the IB's volume-based rebate — but the IB's landing page states plainly that the $500 credit cannot be withdrawn and only cushions losses down to the deposited amount.
Credit bonus vs cashable bonus
Feature
Credit bonus
Cashable bonus
Withdrawable
No
Yes, after conditions
Main purpose
Boost margin
Reward volume
Unlock rule
None — stays as credit
Trade X lots first
Loss absorption
Often cushions to a floor
Usually none
Pro Tip
State in your first line whether the bonus is withdrawable credit or margin-only, and which broker entity and region it applies to — clarity here prevents margin-call anger and protects your reputation.
Common Pitfalls
Marketing the headline percentage while hiding the withdrawal and volume restrictions, which triggers scam accusations against both the IB and the broker when clients discover they can't cash out.
FAQ
Can traders withdraw a deposit bonus?
Usually not directly. Credit bonuses are non-withdrawable margin, while cashable bonuses convert to withdrawable funds only after a required trading volume.
Are deposit bonuses legal?
They are banned for retail clients of FCA (UK) and CySEC (EU) brokers under ESMA-aligned rules. Offshore and some non-EU/UK entities may still offer them.
How is the bonus amount calculated?
It is the deposit multiplied by the bonus percentage. A 50% bonus on a $1,000 deposit adds $500 of bonus credit.
Does a bonus increase leverage?
Indirectly, yes. It raises usable margin, letting the trader open larger positions, which amplifies both potential gains and losses.
Should an IB lead every campaign with a bonus?
Not necessarily. Bonuses convert well but attract low-quality, high-churn traders; pairing them with education often produces steadier long-term volume.
What happens to the bonus if the client withdraws their deposit?
Most brokers remove the bonus proportionally or entirely when a client withdraws. The exact rule is set in the offer's terms and conditions.
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