Understanding forex bonus terms is essential before you claim any broker promotion. Bonus offers come loaded with jargon — turnover multipliers, credit bonuses, profit caps, KYC stages — and misreading a single term can turn an attractive headline into a losing deal. This A-Z glossary defines every key term you will encounter across deposit bonuses, no-deposit bonuses, and cashback programs, with plain-language explanations and practical examples.
Use this page as a reference alongside our complete forex bonus guide and the detailed breakdown of deposit bonus terms.
Verified June 2026. forex-bonus.com may earn a commission through broker links. This never influences our ratings. Read our full methodology.
A
Account Verification
The process of confirming your identity and address with a broker before withdrawing funds. Account verification is the practical outcome of completing KYC requirements. Most brokers require verification before releasing bonus profits, even if they let you trade with an unverified account. Expect to submit a government-issued ID and a recent utility bill or bank statement.
Affiliate Disclosure
A statement on a website that discloses financial relationships with brokers. Regulatory bodies and search engines require affiliate sites to be transparent about compensation. On forex-bonus.com, we include an affiliate disclosure on every page because honesty about how we earn revenue is a baseline trust requirement.
B
Bonus Abuse
Trading activity designed solely to exploit a bonus offer without genuine market participation. Common tactics include hedging across two accounts at the same broker, opening and immediately closing positions, or scalping within arbitrarily narrow windows. Brokers monitor for abuse and will void the bonus and any associated profits. Legitimate trading that happens to meet bonus conditions quickly is not abuse — the distinction is intent and trading pattern.
Bonus Credit
A bonus added to your trading account that increases your available margin but cannot be withdrawn directly. You trade with the extra margin, and if you meet the turnover requirement, the profits you generate become withdrawable — but the credit itself is removed from the account once you withdraw. Credit bonuses are the most common type. Compare with cash bonus, which works differently.
Broker Blacklist
A list of brokers flagged for fraudulent, deceptive, or consistently harmful practices. Blacklisted brokers may refuse withdrawals, manipulate prices, or operate without any credible regulation. We maintain our own broker blacklist based on documented evidence and regulatory actions.
C
Cash Bonus
A bonus deposited as real, withdrawable cash rather than non-withdrawable credit. Cash bonuses are rare and typically come with stricter turnover requirements because the broker is handing over actual funds. If a broker offers a $100 cash bonus with a 30-lot turnover requirement, you can withdraw the $100 itself (plus any profits) once you complete the volume — unlike a credit bonus, where only the profits are withdrawable.
CPA (Cost Per Acquisition)
A commission model where the broker pays an affiliate a fixed fee for each new funded account referred. CPA is the most common affiliate payout structure in forex. It does not directly affect traders, but it explains why so many sites promote bonuses aggressively — the referral payment is triggered by your deposit.
Credit Bonus
See Bonus Credit. The two terms are interchangeable.
D
Deposit Bonus
A bonus calculated as a percentage of your deposit amount. A “100% deposit bonus up to $500” means the broker matches your deposit dollar-for-dollar, capped at $500. Deposit bonuses are the most widespread promotion in forex. The headline percentage is less important than the terms attached — specifically the turnover requirement and time limit. For a full breakdown, see our deposit bonus hub.
Deposit Match
Another term for deposit bonus. “Match” emphasizes the 1:1 (or other ratio) relationship between your deposit and the bonus amount.
E
ECN (Electronic Communication Network)
A type of trading execution where orders are matched directly between market participants without a dealing desk. ECN brokers typically charge a commission per lot rather than widening the spread. This matters for bonus traders because commission-based costs are easier to calculate when estimating the real cost of turnover.
Eligible Instruments
The specific trading instruments (currency pairs, commodities, indices, crypto CFDs) that count toward a bonus turnover requirement. Most brokers restrict qualifying instruments — exotic pairs with wide spreads may be excluded, or only major forex pairs count. Always check the eligible instruments list before claiming an offer because trading non-qualifying pairs wastes volume that will not reduce your remaining requirement.
Equity
The real-time value of your account: balance plus or minus unrealized profit/loss on open positions. Some brokers tie bonus removal to equity thresholds — if your equity drops below the original deposit amount, the bonus credit is automatically removed to prevent the account from going negative on the broker’s margin.
F
First Deposit Bonus (FDB)
A deposit bonus offered exclusively to new clients on their first funded deposit. FDB offers are usually the most generous a broker will provide because the goal is client acquisition. They are one-time offers: if you deposit $200 and the FDB is 100% up to $1,000, you receive $200 in bonus. You cannot deposit again later and claim the remaining $800 headroom unless the terms explicitly allow it.
Free Margin
The amount of equity in your account that is not being used as margin for open positions. Free margin determines your capacity to open new trades. A bonus credit increases your free margin, which lets you take larger positions or absorb larger drawdowns — but this additional breathing room disappears if the broker removes the bonus due to a terms violation or expiry.
G
Geo-restriction
A limitation that restricts a bonus offer to traders in specific countries or regions. Forex bonuses are banned for retail clients in the EU (under ESMA rules), the UK (FCA), Australia (ASIC), and the United States. Brokers geo-restrict their promotions to comply with local regulations. If you are in an eligible region such as Nigeria, South Africa, India, Indonesia, Malaysia, or the Philippines, you will see offers that are hidden from visitors in banned jurisdictions.
H
Hedging (in Bonus Context)
Opening opposite positions on the same instrument to lock in a near-zero-risk outcome. While hedging is a legitimate risk management tool in normal trading, many bonus terms prohibit using hedging strategies to meet turnover requirements. Internal hedging (opposite positions within the same account) is almost always flagged. Cross-account hedging (long on one account, short on another at the same broker) is classified as bonus abuse and will result in bonus cancellation.
I
IB (Introducing Broker)
An affiliate or partner who refers clients to a broker in exchange for a share of the trading revenue those clients generate. IB programs pay per-lot commissions (revenue share) rather than a one-time CPA fee. Some IBs pass part of their commission back to traders as cashback rebates, creating recurring value that often exceeds the one-time benefit of a deposit bonus.
K
KYC (Know Your Customer)
The identity verification process brokers must complete under anti-money-laundering (AML) regulations. KYC typically requires: (1) a government-issued photo ID (passport or national ID card), (2) proof of address (utility bill or bank statement dated within three months), and sometimes (3) proof of payment method. Most brokers allow you to trade with a bonus before completing KYC, but every regulated broker will require KYC before processing any withdrawal.
L
Leverage
The ratio of position size to required margin. At 1:100 leverage, a $1,000 margin controls a $100,000 position (one standard lot). Leverage amplifies both gains and losses. Bonus credit effectively gives you extra margin, which some traders treat as an excuse to use higher leverage. This is dangerous — the bonus does not protect you from losses, and some brokers remove the bonus if equity falls below a trigger level, which can cause a margin call mid-trade.
Lot (Standard, Mini, Micro)
The unit of trade size in forex. A standard lot is 100,000 units of the base currency, a mini lot is 10,000 units, and a micro lot is 1,000 units. Turnover requirements are expressed in lots — if a broker requires “25 lots,” they mean 25 standard lots unless stated otherwise. Trading micro lots (0.01) means you need 2,500 micro-lot trades to reach 25 standard lots. For the full math, see how to calculate bonus turnover.
M
Margin
The funds your broker holds as collateral for an open position. At 1:100 leverage, the margin for one standard lot of EUR/USD is approximately $1,000. Your deposit plus any bonus credit determines your total available margin. If the bonus is removed — due to expiry, a terms violation, or withdrawal — your available margin drops instantly, which may trigger a margin call on open positions.
Margin Call
A notification (or automatic action) triggered when your account equity falls below the broker’s minimum margin requirement. If your equity drops to, say, 50% of the used margin, the broker issues a margin call. Some brokers automatically close your largest losing position; others close all positions. Bonus removal during a drawdown can instantly cause a margin call, which is why you should never size positions as if bonus credit is permanent equity.
Maximum Bonus Cap
The ceiling on a bonus offer. “100% bonus up to $5,000” means the match rate is 100% but the maximum bonus you can receive is $5,000 regardless of deposit size. Depositing $10,000 still yields only $5,000 in bonus. The cap exists because brokers manage their bonus liability as a marketing budget.
N
NDB (No-Deposit Bonus)
A bonus credited to your account without requiring any deposit. NDB offers let you trade with the broker’s money, typically ranging from $5 to $100. The turnover requirements on NDB offers are proportionally stricter than deposit bonuses, and profit caps are almost always in place. NDB offers are legitimate as a way to test a platform without depositing your own funds, but they are not meaningful income sources. For a full guide, see our no-deposit bonus hub.
O
Open Position
A trade that has been executed but not yet closed. Most turnover requirements count only closed positions — holding a position open does not contribute to your bonus turnover progress. Some brokers add a minimum hold time per trade (for example, positions must be open for at least two minutes) to prevent rapid open-close abuse.
P
Pip
The smallest standard price increment in a currency pair. For most pairs, one pip is 0.0001 (the fourth decimal place). For JPY pairs, one pip is 0.01. On a standard lot of EUR/USD, one pip equals approximately $10. Pips are the building block of spread costs, which directly determine the real cost of meeting a turnover requirement.
Profit Cap
A maximum amount of profit you can withdraw from a bonus (especially common on NDB offers). If a no-deposit bonus has a $100 profit cap, you can withdraw at most $100 in profits even if you generate $500. Profit caps protect brokers from outsized payouts on free capital. They are sometimes called “maximum withdrawable profit” or “profit ceiling.”
R
Rebate (Cashback)
A portion of the spread or commission returned to the trader after each closed trade, usually paid per lot. Rebates are offered through IB programs or directly by brokers. Unlike deposit bonuses, rebates have no turnover requirement and no expiry — every lot you trade earns cashback. Over time, rebates from high-volume trading can exceed the value of a one-time deposit bonus.
Regulation
The oversight framework imposed on a broker by a financial authority. Common regulators include CySEC (Cyprus/EU), FCA (UK), ASIC (Australia), FSCA (South Africa), CMA (Kenya), and various offshore authorities (FSA Seychelles, IFSC Belize, VFSC Vanuatu). The regulator determines whether the broker can offer bonuses at all — EU, UK, and Australian regulators prohibit retail bonus promotions. Always check which entity of a broker you are signing up with, as the same brand may operate under multiple regulatory licences.
Required Deposit
The minimum deposit needed to activate a bonus offer. Some offers require a specific minimum (for example, $100) while others apply to any deposit amount. The required deposit is distinct from the broker’s general minimum deposit — a broker may accept $10 deposits normally but require $200 to qualify for a specific bonus.
S
Slippage
The difference between the expected execution price and the actual fill price. Slippage is normal during volatile markets or low liquidity. For bonus traders, slippage adds an invisible cost on top of the spread, making the real expense of meeting turnover slightly higher than the theoretical spread cost alone.
Spread
The difference between the bid (sell) price and the ask (buy) price of a currency pair, measured in pips. The spread is the primary cost of each trade and the main revenue source for market-maker brokers. When evaluating a bonus, multiply the average spread (in dollar terms per lot) by the required number of lots to estimate the total cost of meeting the turnover requirement. A bonus worth $500 that costs $600 in spreads to unlock is a net loss. See our turnover calculator guide for worked examples.
Stop Out
The equity level at which a broker forcibly closes all your open positions to prevent the account balance from going negative. Stop-out levels vary by broker (commonly 20% to 50% of used margin). If bonus credit is part of your margin and the broker removes it mid-trade, your equity can instantly hit the stop-out threshold.
Swap (Overnight Fee)
The interest charge or credit applied when you hold a position overnight. Swaps are based on the interest rate differential between the two currencies in a pair. Bonus terms rarely mention swaps explicitly, but holding positions overnight to slowly accumulate turnover will incur swap costs that eat into your net result — especially on pairs with large negative swaps.
T
Time Limit (Bonus Expiry)
The deadline by which you must complete the turnover requirement. Common time limits range from 7 days (aggressive) to 90 days (reasonable) to 180 days (generous). If you fail to meet the turnover before the deadline, the broker removes the bonus credit and, in most cases, any unrealized profits associated with it. Short time limits pressure traders into overtrading, which increases both spread costs and the risk of significant losses. For a detailed analysis of how time limits change the math, see deposit bonus terms explained.
Trading Volume
The total notional value of trades executed, or equivalently, the total number of lots traded. Trading volume and turnover are used interchangeably in bonus contexts. Brokers track your cumulative volume against the turnover requirement to determine when the bonus conditions are met.
Turnover Requirement
The total trading volume you must complete before a bonus (or its profits) becomes withdrawable. Turnover requirements are the single most important term in any bonus offer. They are expressed as a lot count (for example, “trade 25 lots”) or as a multiplier of the bonus amount (for example, “5x the bonus in lots”). A $500 bonus with a 5x multiplier requires 2,500 standard lots of notional volume, which at a 1.5-pip average spread on EUR/USD costs approximately $375 in trading fees. If the cost exceeds the bonus value, the offer is a net negative. For step-by-step calculation, read how to calculate bonus turnover.
U
Unrealized P/L
Profit or loss on positions that are still open. Unrealized P/L affects your equity but does not count as completed turnover. Some bonus terms state that the bonus is voided if unrealized losses bring equity below a specified threshold, so monitoring open positions is critical when trading with bonus credit.
V
Verification Level
The tier of account verification you have completed. Many brokers use tiered KYC: Level 1 (email/phone) allows trading with limited features, Level 2 (ID document) unlocks withdrawals, and Level 3 (proof of address + payment method) removes all restrictions. Bonus profits are almost always locked behind Level 2 or Level 3 verification.
Volume Multiplier
The factor applied to the bonus amount to calculate the turnover requirement. A 5x volume multiplier on a $200 bonus means you must trade $200 x 5 = $1,000 worth of lots (usually interpreted as 10 standard lots, since one lot has a notional value of $100,000 — brokers define their multiplier conventions differently). Always confirm whether the multiplier applies to the bonus amount, the deposit amount, or the combined total, as this changes the requirement substantially.
W
Withdrawal Conditions
The complete set of rules governing when and how you can withdraw bonus funds or profits. Withdrawal conditions encompass the turnover requirement, time limit, profit cap, KYC status, minimum withdrawal amount, and any restrictions on withdrawal method. The most common surprise: some brokers remove the entire bonus (and associated profits) the moment you make any withdrawal, even a partial one. Read the withdrawal conditions in full before claiming any offer.
Welcome Bonus
A blanket term for any bonus offered to new clients. A welcome bonus may be a deposit bonus, a no-deposit bonus, or a combination (for example, a $30 NDB plus a 50% first deposit match). The term is marketing language — what matters is the specific type and terms.
Quick-Reference Comparison Table
| Term | Definition | Why It Matters for Traders |
|---|---|---|
| Credit Bonus | Non-withdrawable margin boost | You keep profits, not the bonus itself |
| Cash Bonus | Withdrawable real funds | Rare; stricter turnover to compensate |
| Turnover Requirement | Volume you must trade to unlock withdrawal | The true cost of the bonus |
| Profit Cap | Max withdrawable profit (common on NDB) | Limits your upside on free bonuses |
| Time Limit | Deadline to complete turnover | Short deadlines encourage overtrading |
| KYC | Identity verification | Required before any withdrawal |
| Lot (Standard) | 100,000 units of base currency | The unit turnover is measured in |
| Spread | Bid-ask difference (your trading cost) | Multiplied by lots = real bonus cost |
| NDB | No-deposit bonus (trade without depositing) | Platform test, not an income source |
| Leverage | Margin multiplier (e.g. 1:100) | Bonus margin amplifies risk further |
| Margin Call | Forced closure when equity is too low | Bonus removal mid-trade can trigger this |
| Geo-restriction | Country-based offer availability | Bonuses banned in EU/UK/AU/US |
How to Use This Glossary
Bookmark this page as a reference. When you encounter unfamiliar terms in a broker’s bonus conditions, look them up here before committing funds. The two most important calculations in bonus trading are:
- Turnover cost — multiply the required lots by your average spread cost per lot. If this exceeds the bonus value, decline the offer. See our turnover calculator guide for worked examples.
- Time feasibility — divide the required lots by the number of lots you realistically trade per day. If the result exceeds the time limit, the bonus will expire before you complete the requirement.
For a structured walkthrough of evaluating any bonus offer from start to finish, read the forex bonus guide.
FAQ
What is the most important forex bonus term to understand?
The turnover requirement matters most because it determines the real cost of the bonus. A generous-looking 100% match becomes a net loss if the turnover requirement generates more spread costs than the bonus is worth. Always calculate the lot cost before claiming any offer.
What is the difference between a credit bonus and a cash bonus?
A credit bonus adds non-withdrawable margin to your account — you can trade with it and withdraw profits, but the credit itself is removed when you withdraw. A cash bonus is real withdrawable money, though it typically comes with higher turnover requirements to compensate.
Can I claim forex bonuses from any country?
No. Forex bonuses are banned for retail clients in the EU, UK, Australia, and the United States under regulations from ESMA, FCA, ASIC, and relevant US agencies respectively. Bonuses are available primarily to traders in emerging markets including Nigeria, South Africa, India, Indonesia, Malaysia, the Philippines, and others. Brokers geo-restrict their offers accordingly.
What happens if I do not meet the turnover requirement in time?
If you fail to complete the required trading volume before the time limit expires, the broker removes the bonus credit from your account. Depending on the broker’s terms, any profits generated using the bonus may also be voided. Your original deposit remains yours, but the bonus and its associated gains are forfeited.
How do I know if a bonus offer is worth claiming?
Calculate the spread cost of the turnover requirement and compare it to the bonus amount. If a $500 bonus requires 25 standard lots and your average spread cost is $15 per lot, the turnover costs $375 — leaving $125 in net value. If the cost exceeds the bonus, or the time limit is unrealistically short, the offer is not worth claiming. Our bonus guide provides a full evaluation framework.
This glossary is updated regularly as broker terms and market practices evolve. Last verified June 2026.
Risk warning: Forex and CFD trading carries a high level of risk to your capital. The majority of retail investor accounts lose money when trading leveraged products. Only trade with money you can afford to lose.