Brokers With Referral Bonus

In the online trading space, brokers offer a variety of bonuses to their clients as a way to reward loyalty and attract new clients. One of the most popular bonuses among brokers is a referral bonus that rewards traders for bringing new customers to the broker site. Essentially, this system empowers traders to advertise the broker of their choice to other people.

In this article, we will explore some brokers with referral bonuses to see which ones stand out. We will consider not only the bonus amount they offer, but also the offer they have for traders covering regulations, spreads, collection of market products, and the trading platforms available. We will also discuss the benefits and potential pitfalls of these programs to give a full picture to those interested.

How Do Referral Bonuses Work?

Typical broker referral programs usually operate in the same structure. First, existing clients are provided with a unique referral link or code by their broker which they can share with their network. This link is used to track the new clients who sign up using it. If someone clicks your link and opens an account with the broker, you become their referrer. In some cases, the new client may need to meet certain criteria, such as making a minimum deposit or executing a specific number of trades. Once the conditions are fulfilled, the broker rewards the referring client with the agreed-upon bonus. In some cases, the broker may reward both the existing client and the new customer.

With that short overview, let’s now look at some brokers with referral bonuses.

Pepperstone

Pepperstone is a global CFD broker with two main referral bonuses. First, this broker gives traders 20 commission-free trades when they refer a friend. When you refer a friend who then goes on to fund their account with at least $1,000 within 90 days, you will both receive 20 commission-free trades within 30 days. These 20 commission-free trades apply only to forex and share CFD pairs. However, note that the commission-free trades are only redeemable up to a maximum value of $600 per trade.

The other referral bonus applies when a trader refers a friend who goes on to become a pro trader with Pepperstone. Once you invite a friend to Pepperstone, you can then ask them to state your email address in the “How did you hear of us” section. From there, your friend must be approved as a Pepperstone Pro trader and meet the initial deposit and trade requirements within 90 days of opening their account. 

The pro referral program rewards traders depending on where they are from. For example, for traders in Australia, there are two tiers to the pro referral program. The first tier is when your friend deposits at least AUD $5,000 and trades 50 forex lots and 100 lots in commodities or 500 index lots. Here, you will receive AUD $1,000 each for Pepperstone Pro clients satisfying the sophisticated investor test or AUD $2,000 each for Pepperstone Pro clients satisfying the wealth test. The second tier applies when your friend deposits AUD $10,000 and traders 200 forex lots or 400 commodity lots or 2,000 index lots. Here, you both receive AUD $2,500 each for Pepperstone Pro clients satisfying the sophisticated investor test or $5,000 each for Pepperstone Pro clients satisfying the wealth test.

In some other regions, there are three different tiers for the pro referral program. The first tier applies when a trader deposits at least US$500 and traders at least 2.5 forex lots, 5 commodities lots or 25 index lots. This tier rewards both traders with a US$50 bonus. The second tier applies for a deposit of at least US$1,000 with a trading volume of 5 forex lots or 10 commodity lots or 50 index lots. This tier awards both traders US$100. The final tier requires a deposit of at least US$5,000 with at least 50 forex lots, or 100 commodity lots or 500 index lots. This tier gives both traders a $1,000 bonus each.

What Does Pepperstone Offer?

Note that the market products mentioned here are not the only ones that Pepperstone offers. This broker gives access to a deep collection of instruments totalling over 1,200 different assets. These include CFDs on forex, indices, commodities, cryptocurrencies, and ETFs. The trading platforms include MetaTrader 4, MetaTrader 5, cTrader, TradingView, and the Pepperstone Trading Platform. Further, the spreads are from as low as 1.0 pips on the standard account and 0.0 pips on the razor account with a commission depending on the trading platform. On regulations, this broker holds licenses from institutions such as the FCA in the UK, the ASIC in Australia, the CySEC in Cyprus, the CMA in Kenya, and the DFSA in the DIFC.

76.3% of retail CFD accounts lose money

FP Markets

FP Markets is another reputable broker that offers its clients a referral bonus. When you refer a friend to FP Markets, you stand the chance to earn up to $200. However, the amount you earn depends on the initial deposit of your friend and their trading volume. When your friend deposits $500 and trades at least 2.5 lots, then you will receive $50. If the friend deposits at least $1,000 and trades at least 5 lots, the bonus is $100. A deposit of $5,000 and a trading volume of at least 7.5 lots earns a bonus of $150. Finally, a $10,000 deposit with a trading volume of 10 lots earns a bonus of $200. Interestingly, the referral bonus on FP Markets is available to withdraw at any time. The referral bonus is subject to availability based on the country of your residence. For more information, please visit the official FP Markets site.

What Does FP Markets Offer?

FP Markets offers an extensive range of trading instruments, including forex currency pairs and CFDs on shares, bonds, metals, indices, ETFs, and commodities. With over 10,000 trading instruments available, investors are truly spoiled for choice on this broker platform. The trading platforms available to use include MetaTrader 4, MetaTrader 5, TradingView, Iress, and cTrader.

The spreads involved when trading depends on the account that a trader chooses. Specifically, traders can choose between two main accounts, the standard and the raw account. The standard account comes with spreads from as low as 1.0 pips with no commission required. In contrast, the raw account offers spreads from 0.0 pips, but a $3 commission per side per lot applies. Another positive aspect is that this broker is regulated by multiple international authorities. These include the ASIC in Australia, the CySEC in Cyprus, and the FSCA in South Africa, among others.

72.92% of retail CFD accounts lose money

XM

XM is another global forex broker which offers a referral program where existing clients can earn rewards by referring new traders. With this program, there are three different tiers depending on the number of people a trader refers to XM. If you refer 1 to 15 people, you will earn a $40 bonus per referral. For referring between 16 and 30 people, traders receive a bonus of $50 per person. Finally, a trader who refers more than 30 people to XM will earn a bonus of $70 per referral. A successful referral in the XM referral program is a person who uses your referral URL to open, verify, and fund their trading account and trades at 1 standard lot in forex, gold, or silver using their own deposited funds. 

Any money you earn as a referrer, through the program, is withdrawable via your trading account. To withdraw your rewards, navigate to the “MyWallet” dashboard in your Members Area. From there, you can see your total balance and select how much you want to withdraw and/or transfer to your trading account. When transferring funds to an XM trading account, MyWallet is treated as any other payment method. You will still be eligible to receive deposit bonuses under the terms of the XM Bonus Program. The referral bonus is subject to availability based on the country of your residence. For more information, please visit the official XM site.

What Does XM Offer?

Remarkably, traders can explore a vast selection of over 1,000 CFDs, covering forex, stocks, precious metals, energies, indices, shares, and cryptocurrencies. The broker supports various trading platforms, including MetaTrader 4, MetaTrader 5, and the XM Trading App. It also provides a cost-effective trading environment with competitive spreads.

Both standard and micro accounts feature spreads as low as 1.0 pip, with no commission charged. For even tighter spreads, the XM Ultra Low account offers spreads from 0.6 pips without any commission. For the Shares account, a small commission is charged, which varies based on the share and trade size. Further, XM's credibility is reinforced by its regulation by multiple bodies. These include the FCA in the UK, the FSC in Belize, and ASIC in Australia, among others.

74.12% of retail investor accounts lose money when trading CFDs with this provider.

Interactive Brokers

Interactive Brokers gives its traders the chance to refer friends to sign up to IBKR for a chance to earn a bonus of $200 per referral. Additionally, the friend they refer stands the chance to earn up to $1000 of IBKR stock. Importantly, only IBKR clients with individual or joint accounts having a net liquidation value of at least $2000 and a completed securities trade are eligible to participate in the Refer a Friend program. Geographic restrictions may apply. 

But how does this program work? Well, referrers receive $200 for each referred client who opens an individual or joint account, deposits $10,000 within 30 days of account opening, and maintains a balance of at least $10,000 for one year. On the other hand, referred accounts will earn $1 in IBKR shares for every $100 of value (cash or other assets) added to their account, up to a maximum of $1,000 worth of IBKR shares.

What Does Interactive Brokers Offer?

Interactive Brokers offers its traders immense opportunities to diversify their accounts. Traders can invest in forex, stocks, options, futures, currencies, cryptocurrencies, US Spot Gold, bonds, ETFs, funds and more from a single platform. The Interactive Brokers trading platform is available on a variety of devices. It is available on web, mobile, and desktop. The market products on this broker site come with some of the lowest trading fees available. Spreads on major currency pairs start as low as 1.0 pips on IBKR.

Additionally, Interactive Brokers operates under stringent regulatory oversight, holding licenses from various jurisdictions. These include the FCA in the UK, the SEC and CFTC in the US, ASIC in Australia, CIRO in Canada, and the Monetary Authority of Singapore. 

AvaTrade

Let’s close our list with another well-regulated broker that offers its traders a referral bonus, AvaTrade. AvaTrade allows its traders to refer people to the broker site for a chance to earn up to $250 in rewards. To qualify for this program, your referee must open a real AvaTrade trading account using your link. They must then make the minimum first-time deposit or higher and open at least 10 trades within 3 months. You will then receive a bonus depending on the deposit your friend makes. Below is a table summary of the bonus amount in relation to the deposit that your friend makes.

76% of retail CFD accounts lose money

What Does AvaTrade Offer?

Like the other brokers on this list, AvaTrade also offers a deep collection of market products. Traders can invest in CFDs on a diverse range of assets, including forex, stocks, commodities, indices, cryptocurrencies, ETFs, and bonds. This enables them to diversify their risk across various markets. Additionally, the broker offers some of the lowest spreads available, starting from just 0.9 pips on major currency pairs with no commission charged. 

To place orders in the various markets, clients can utilize a variety of trading platforms. These include MetaTrader 4, MetaTrader 5, and AvaTrade’s own AvaTradeGO. They also have access to various tools such as AvaOptions, DupliTrade, and ZuluTrade.

Finally, AvaTrade is regulated by multiple international authorities, including the FSCA, ASIC, CySEC, Central Bank of Ireland, and FSCA. This multi-regulatory oversight usually ensures a high level of security and transparency for clients.

Closing Remarks on Brokers With Referral Bonus

Referral bonus programs are a powerful tool for brokers to attract and retain clients while rewarding existing users for their efforts. This mutually beneficial program can significantly contribute to a broker’s growth and client engagement. However, note that the referral bonus of the broker should not be the only thing to consider when selecting a broker to trade with. Above everything, you should first consider the credibility of the broker. Ensure that the broker has stellar regulations, offers a variety of assets to trade, and features an advanced trading platform. Finally, remember to always read the terms and conditions of the referral program to understand the specific requirements and limitations.