Also known as:Drawdown Bonus, Support Margin Bonus, Credit Bonus, Loss-Absorbing Bonus
What is Tradable Bonus?
A tradable bonus is a deposit credit that behaves like real cash on the trading account: it adds to usable margin and can be consumed by floating losses. Unlike a withdrawal-only or "phantom" bonus, it cushions drawdown, delaying a margin call until both the real balance and the bonus are eroded.
The mechanic matters because most retail promotions are cosmetic. A non-tradable bonus inflates the headline equity figure but is stripped the instant a client's own funds run low, so it never actually protects a live position. A tradable bonus is added to the margin calculation, so a trader with a $1,000 deposit and a $200 tradable bonus has $1,200 of loss-absorbing capacity rather than $1,000.
Key takeaways
Tradable = counts as margin and can absorb floating losses, unlike phantom bonuses.
The credit itself is almost always non-withdrawable; only bonus-linked profit can be cashed out after volume rules.
Partial deposit withdrawal usually triggers a proportional bonus clawback.
Advertise the exact terms in writing — vague 'protects your trades' claims backfire.
Rare because the broker carries real credit risk during deep drawdowns.
Brokers structure these bonuses with strict terms: the credit is usually non-withdrawable itself, is removed pro-rata if the client withdraws part of the deposit, and often requires a lot-volume turnover before any bonus-linked profit can be paid out. A typical clause is one standard lot traded per $2–$5 of bonus before it converts to withdrawable equity. Because the broker is effectively lending its own capital to sit under the client's losses, tradable bonuses appear far less often than simple welcome credits.
For a partner, the tradable bonus is a genuine differentiator rather than marketing filler. It changes the trader's experienced risk profile — a 20–50% tradable credit meaningfully extends how long a position can stay open through a drawdown — which is why sophisticated clients actively hunt for it and why it must be advertised with exact, broker-confirmed terms.
How it works
When a client deposits, the broker credits a bonus amount to a separate ledger that is added to the account's usable margin. As the trader opens positions, floating profit and loss move against total equity, which now includes the bonus. If the market moves against the trader, the bonus is drawn down alongside real funds, so the stop-out level is reached later than it would be on the deposit alone.
The bonus is governed by a rulebook: a volume requirement (lots traded) that must be met before bonus-derived profit becomes withdrawable, a proportional clawback if the client withdraws part of the principal, and an expiry window. The broker carries the credit risk, because in a deep, fast drawdown the client is effectively trading with the broker's capital before their own is fully consumed.
1
Client deposits and opts in
The trader funds the account and accepts the bonus terms; the broker credits, say, 20% of the deposit as tradable margin.
2
Bonus joins usable margin
The credit is added to the margin calculation, raising the account's loss-absorbing capacity above the cash deposit alone.
3
Drawdown consumes bonus
If positions move into loss, the bonus is drawn down together with real funds, pushing the margin-call and stop-out levels further away.
4
Volume requirement unlocks value
Once the client trades the required lot volume, bonus-linked profit converts to withdrawable equity per the broker's terms.
5
Clawback on partial withdrawal
If the client withdraws part of the principal before conditions are met, the broker removes a proportional slice of the bonus.
Why it matters for partnership: A tradable bonus is a rare conversion asset: it genuinely protects a client's drawdown, so it out-converts generic welcome credits and builds trust. IBs who advertise the exact, broker-confirmed terms win experienced traders and reduce early churn.
Real World Example
A client deposits $1,000 with an FBS-style broker offering a 20% tradable bonus, giving $1,200 of usable margin. A EUR/USD position moves to a $1,050 floating loss. Because the $200 bonus counts toward margin, the account survives the dip instead of hitting stop-out at the $1,000 cash level, and the trade later recovers. The IB advertised the exact volume-turnover clause up front, so the client had no surprise clawback.
Tradable vs non-tradable (phantom) bonus
Feature
Tradable Bonus
Non-Tradable Bonus
Counts toward margin
Yes
No
Absorbs floating losses
Yes, delays stop-out
No, stripped when cash runs low
Bonus itself withdrawable
No
No
Broker credit risk
High
Low
Best marketing angle
Genuine drawdown support
Headline equity boost only
Pro Tip
Publish the broker's exact turnover and clawback clauses next to the offer — traders who understand the difference convert on transparency, not hype.
Common Pitfalls
Advertising a standard margin credit as 'tradable' when the broker actually strips it at low equity — clients hit an unexpected margin call and publicly blame the IB.
FAQ
Why don't all brokers offer tradable bonuses?
The broker carries real credit risk, because in a deep drawdown the client is effectively trading on the broker's capital before their own funds are fully consumed. Many brokers prefer lower-risk withdrawal-only credits.
Can I withdraw the tradable bonus itself?
Almost never. The credit is non-withdrawable; only profit generated on top of it can be withdrawn, and usually only after you meet a lot-volume turnover requirement.
What happens if I withdraw part of my deposit?
Most brokers remove a proportional slice of the bonus (a clawback), so partial withdrawals shrink your loss-absorbing cushion. Check the exact clause before promoting the offer.
Is a tradable bonus the same as a drawdown bonus?
Yes, 'drawdown bonus' and 'support-margin bonus' are common alternate names for the same mechanic: a credit that counts as margin and absorbs floating losses.
Do regulators allow deposit bonuses like this?
It varies by jurisdiction. Regulators such as ESMA and the FCA restrict or ban trading incentives for retail clients in the EU/UK, so these offers are typically limited to other regions. Always verify the target market's rules.
Should I promote tradable bonuses to beginners?
Be cautious. A drawdown cushion can encourage over-leveraging, so pair any promotion with clear risk warnings and never imply the bonus removes the possibility of loss.
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