What is the difference between a forex credit bonus vs cash bonus? It comes down to one thing: whether the bonus itself can ever leave your trading account as real money. A credit bonus adds margin you can trade with but never withdraw. A cash bonus starts as restricted funds that convert into withdrawable money after you meet specific conditions. Most brokers offer credit bonuses. Understanding which type you are looking at — before you claim it — determines whether the offer has real monetary value or is purely a trading tool.
This guide explains exactly how each type works, how to identify them from the terms and conditions, and which one delivers better value depending on your goals.
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Availability note: Forex bonuses are banned for retail clients in the EU (ESMA), UK (FCA), Australia (ASIC), and the US (CFTC/NFA). The bonuses discussed here are available to traders in eligible regions including Nigeria, South Africa, India, Indonesia, Malaysia, the Philippines, Pakistan, Bangladesh, and parts of the Middle East and Latin America.
What Is a Credit Bonus?
A credit bonus adds funds to your account that increase your available margin but cannot be withdrawn as cash. You deposit $500, receive a $500 credit bonus, and your platform shows $1,000 in available margin. You can open larger positions than your deposit alone would allow. But when you request a withdrawal, the credit is subtracted from your balance. You get back your deposit and any profits you earned — the credit amount itself stays with the broker.
Credit bonuses are sometimes called “non-withdrawable bonuses,” “trading credit,” or “margin bonuses.” The terminology varies between brokers, but the mechanics are the same: the bonus funds never convert into real money regardless of how much you trade.
How Credit Bonuses Behave in Practice
When you trade with a credit bonus, the credit supports your open positions by expanding your margin. If your trades are profitable, the profits belong to you. If your trades lose money, the losses come from your real balance first. Once your real balance is depleted, the credit is typically removed and your positions are closed.
Key behaviors of credit bonuses:
- Withdrawal triggers removal. If you withdraw any portion of your deposit, the credit is partially or fully removed. Many brokers remove the credit proportionally — withdraw 50% of your deposit, lose 50% of the credit.
- The credit absorbs nothing. Losses always come from your real funds. The credit only provides additional margin capacity.
- Expiry is common. Most credit bonuses expire after 30 to 180 days. When they expire, the credit disappears from your account.
- No volume requirement for the bonus itself. Because the credit is never withdrawable, there is often no lot requirement attached to the credit portion. However, some brokers do require minimum trading volume before you can withdraw profits earned while the credit was active.
What Is a Cash Bonus?
A cash bonus — also called a withdrawable bonus or convertible bonus — is a bonus that begins as restricted funds and converts into real, withdrawable money after you complete specific conditions. The most common condition is a trading volume requirement measured in standard lots.
You deposit $500, receive a $500 cash bonus, and your account shows $1,000. The bonus portion is locked until you trade a specified number of lots. Once you hit the target, the $500 bonus converts to unrestricted cash that you can withdraw alongside your deposit and profits.
Cash bonuses are significantly less common than credit bonuses. Because the broker is giving away real money, the conditions attached are almost always stricter: higher lot requirements, tighter time limits, and more restrictions on trading behavior.
How Cash Bonuses Behave in Practice
Cash bonuses typically have the following characteristics:
- High volume requirements. Expect anywhere from 10 to 30 standard lots per $100 of bonus. At the higher end, the spread cost to complete the volume can exceed the bonus value itself.
- Time limits. Most cash bonuses must be unlocked within 30 to 90 days. If you do not complete the volume in time, the bonus and sometimes the profits earned from it are forfeited.
- Partial conversion. Some brokers convert the bonus incrementally — for every 5 lots you complete, a portion of the bonus unlocks. Others require the full volume before any conversion happens.
- Withdrawal restrictions during the bonus period. Withdrawing your deposit before completing the volume requirement almost always cancels the bonus entirely.
For a detailed guide on which brokers currently offer withdrawable bonuses, see our withdrawable deposit bonuses guide.
Credit vs Cash Bonus: Side-by-Side Comparison
| Feature | Credit Bonus | Cash Bonus |
|---|---|---|
| Can you withdraw the bonus? | No, never | Yes, after meeting conditions |
| Purpose | Extra margin for larger positions | Real money reward for trading activity |
| How common? | Very common — most deposit bonuses are credit | Uncommon — fewer brokers offer these |
| Typical volume requirement | Often none for the bonus; may apply to profits | High — typically 10-30 lots per $100 |
| Time limit | 30-180 days before credit expires | 30-90 days to complete volume |
| What happens on withdrawal | Credit is removed from account | Bonus is forfeited if volume not completed |
| Risk to your deposit | Low — credit just provides margin | Moderate — may encourage overtrading to hit targets |
| Best for | Traders who want more margin capacity | Traders confident they can meet volume naturally |
| Real monetary value | Indirect — only through profits earned | Direct — bonus becomes real cash |
Which Type Is Better?
Neither type is universally better. The right choice depends on your trading style, volume, and goals.
Credit Bonuses Are Better When…
- You want extra margin without strings. A credit bonus lets you open larger positions or survive deeper drawdowns without needing to meet a lot target. If you simply want more room to trade, credit bonuses provide that with minimal conditions.
- You trade infrequently. If you are a swing trader or position trader who completes only a few lots per month, you will struggle to meet the volume requirements of a cash bonus before it expires. A credit bonus gives you the margin benefit regardless of your trading frequency.
- You prioritize flexibility. Credit bonuses usually allow you to withdraw your profits and deposit at any time (the credit simply gets removed). Cash bonuses lock you into completing the volume requirement before you can touch any funds.
Cash Bonuses Are Better When…
- You trade high volume anyway. If you are an active day trader or scalper who naturally completes 20 or more lots per month, the volume requirement of a cash bonus may align with your existing activity. In that case, the bonus is effectively a rebate on trades you would have placed regardless.
- The math works. Use this test: multiply the required lots by your average spread cost per lot. If the total spread cost is less than the bonus value, the cash bonus has positive expected value. If it costs more in spreads than the bonus is worth, the credit bonus is the better deal because it does not require you to trade a specific volume. Our bonus calculator can help you run these numbers.
- You want to maximize total withdrawable value. A $500 credit bonus adds $0 to your withdrawable balance. A $500 cash bonus, if completed, adds $500. For traders who can meet the terms efficiently, the cash bonus delivers measurably more value.
For a deeper look at whether the conditions on any bonus make it worth claiming, read our full guide on whether forex bonuses are worth it.
How to Tell Which Type You Are Getting
Brokers do not always use the words “credit” or “cash” clearly. Here is how to identify the bonus type from the terms and conditions before you claim.
Step 1: Search for Withdrawal Language
Look for phrases in the T&Cs that indicate the bonus type:
Credit bonus indicators:
- “The bonus is for trading purposes only”
- “The bonus amount is non-withdrawable”
- “The bonus will be removed upon withdrawal”
- “The bonus serves as additional margin”
Cash bonus indicators:
- “The bonus becomes withdrawable after completing X lots”
- “The bonus converts to real funds”
- “Upon meeting the trading requirement, the bonus may be withdrawn”
- “The bonus is credited as restricted funds and unlocks after…”
Step 2: Check the Volume Requirement Structure
If the terms specify a lot requirement attached to the bonus amount itself (not just to profits), you are likely looking at a cash bonus. If the lot requirement only applies to withdrawing profits earned while the bonus was active, the bonus itself is credit.
Step 3: Read the Withdrawal Clause
The withdrawal section of any bonus T&Cs reveals the most. A credit bonus will state that the bonus is deducted from your equity upon any withdrawal request. A cash bonus will describe conditions under which the bonus can be included in a withdrawal.
If the terms are unclear, contact the broker’s support before claiming. Ask directly: “Is this bonus withdrawable after meeting the lot requirement, or is it margin credit only?” Our guide on deposit bonus terms explained breaks down every clause you should check.
The Industry Reality: Most Bonuses Are Credit
Across the brokers tracked in our database, credit bonuses outnumber cash bonuses by a wide margin. The reason is straightforward: credit bonuses cost the broker less. A credit bonus is an accounting entry that increases your margin on screen. The broker never actually pays out the bonus amount. They benefit from the extra volume you generate while trading with the additional margin, and the credit disappears when you withdraw or when it expires.
Cash bonuses represent a real cost to the broker. Every dollar of bonus that a trader successfully unlocks and withdraws is a dollar the broker pays out. To offset this, brokers set high volume requirements that generate enough spread revenue to cover (and usually exceed) the bonus value.
This is not inherently bad. Both types serve legitimate purposes. But it means that when you see a large bonus percentage advertised — “100% deposit bonus!” — you should assume it is credit unless the terms explicitly state otherwise. The headline number is marketing. The terms are reality.
Understanding how bonuses work mechanically is essential context. Our guide to how forex bonuses work covers the full picture, and the complete bonus type breakdown catalogs every variation you will encounter.
How to Choose: A Quick Decision Framework
Use this three-question test to decide which bonus type suits your situation:
- Will you meet the volume requirement through normal trading? If yes, take the cash bonus. If no, take the credit bonus — or skip the bonus entirely.
- Do you need more margin, or do you need more cash? Credit bonuses give margin. Cash bonuses give money. Pick the one that matches what you actually need.
- Can you afford to be locked in? Cash bonuses restrict withdrawals until you complete the volume. If you might need your deposit back before then, a credit bonus (or no bonus) is safer.
For help finding current offers of either type, use our bonus finder tool to filter by bonus type, broker, and region.
Frequently Asked Questions
Can a credit bonus become withdrawable?
No. A credit bonus is structurally non-withdrawable. It provides margin only and is removed when you withdraw funds or when it expires. Some brokers market credit bonuses with language that implies withdrawal potential, but if the terms say “non-withdrawable” or “for trading purposes only,” no amount of trading volume will convert it to cash. If you want a bonus you can eventually withdraw, look specifically for a withdrawable deposit bonus.
What happens to my profits if I trade with a credit bonus?
Profits earned while trading with a credit bonus belong to you and are withdrawable. However, some brokers require you to trade a minimum volume before profits can be withdrawn. Others allow immediate profit withdrawal but remove the credit bonus when you do so. Always check the profit withdrawal clause in the terms. Our guide to withdrawing forex bonuses covers this in detail.
Do most brokers offer credit or cash bonuses?
Most brokers offer credit bonuses. Cash bonuses are less common because they represent a real cost to the broker. When you see a deposit bonus advertised without explicit mention of it being withdrawable, it is almost certainly a credit bonus. Always confirm the type before claiming by reading the full terms and conditions.
Is a cash bonus always better than a credit bonus?
Not necessarily. A cash bonus is only better if you can realistically meet the volume requirement without overtrading or incurring spread costs that exceed the bonus value. A $500 cash bonus that requires 150 lots to unlock will cost you roughly $2,250 in spreads on a standard account (150 lots at approximately $15 per lot). In that scenario, the credit bonus — which gives you the same margin benefit without requiring you to trade 150 lots — is the better deal. Always run the math before deciding.
This guide was written by Tim Morris, founder of forex-bonus.com. Tim has reviewed forex broker bonus programs since 2016, testing claims, terms, and withdrawal processes firsthand. Learn more about how we review brokers and bonuses or start with our complete forex bonus guide.