A cash credit given by a broker to a new client without requiring an initial deposit, used to trade live markets risk-free.
A no-deposit bonus is a marketing tool brokers use to attract new clients: the broker credits a small amount (typically USD 10–100) to a live trading account without the client needing to fund it. The client can trade with that capital on real markets, experiencing live spreads, slippage, and execution without their own money at risk.
Withdrawal conditions vary widely and are the critical variable to understand before trading. Most no-deposit bonuses require the client to generate a minimum trading volume (e.g., 5–20 lots) before any profits can be withdrawn, and frequently disallow withdrawal of the bonus capital itself - only the profits can be taken out, and only after meeting turnover requirements. Some bonuses expire if the volume requirement is not met within a defined period.
From a due-diligence perspective, no-deposit bonuses are offered more frequently by offshore brokers operating in lightly regulated jurisdictions where bonus marketing is still permitted. Most tier-1 regulators - FCA, ESMA-regulated brokers, ASIC - either prohibit or heavily restrict deposit and trading bonuses as part of restrictions on inducements to retail clients. The presence of generous bonuses without clear terms is therefore sometimes a warning signal about a broker's regulatory standing.
Legitimate uses include familiarising yourself with a broker's platform and execution conditions before committing your own funds, testing a specific EA or strategy on live data, and experiencing a real account environment (with real psychological pressure) in a risk-managed way.