Forex trading competition and contests

Forex brokers around the world compete with the diversity of their offerings and client-friendly trading terms, looking to boost their competitive advantage and attract more customers.

This includes a wide range of promotional materials and bonuses, which are aimed at adding a gamified element to the trading experience.

One such method used by FX and CFD brokers is a trading challenge, which includes a leaderboard and performance goals where traders compete against each other, as well as market forces, to take top spot and win lucrative cash prizes.

Understanding how to win a trading challenge requires focus and commitment, as well as a tried and tested trading strategy that is able to generate consistent returns.

One added factor to the adrenaline of a trading challenge is time constraint. Typically, forex trading challenges are time-bound and do not continue indefinitely, which is why it is so crucial to develop a strategy that allows you to make the most of favorable market conditions as they arise.

How to boost your odds of winning a trading competition

Trading competitions can be notoriously hard to beat, unless you have a very effective strategy that consistently delivers profits and hardly ever misses a market opportunity.

FX competitions can be especially challenging, thanks to the narrow profit margins that characterize the forex market as a whole.

However, this is not to say that trading competitions are impossible to beat – far from it.

As with any challenge, there are a few important factors that can tilt the odds in your favor and increase your chances of winning cash and other prizes, such as:

• Keeping a level head – maintaining mental stability and not letting stress take over is the key to any successful trading strategy and this is especially true during competitions, when adrenaline is high and the risk of making mistakes is much higher
• Using leverage – unless specifically included in the competition terms, the use of leverage in FX challenges are typically permitted, which can give you an edge. However, leverage can be a double-edged sword and can also amplify your losses if you make a mistake, so caution is advised
• Consistency – sticking with your trading strategy gives you a higher chance of success than switching between strategies while the competition is still ongoing

Ify ou stick with these core principles, you stand a better chance at maintaining mental awareness and avoiding mistakes caused by disorganization and stress.

XM Competitions

XM is among the most popular forex and CFD brokerages in the world. The firm is known for its vast selection of tradable instruments, as well as its frequent trading challenges and competitions.

A total of $70,000 prize pool is offered to traders who take part in these competitions, but the prizes are not limited to solely cash prizes.

Each trading competition varies in terms of its prize pool and the trading objectives.

For example, a challenge may provide a time limit of 30 days, while another competition may set a higher total profit limit.

XM offers these competitions in order to reward existing clients for remaining loyal to the firm.

XM Competition terms and conditions

As with every promotional campaign, trading competitions also come with their terms, conditions, and limitations.

For example, here are some of the competition terms provided by XM:

• Only one real trading account can be used in a given trading competition
• Only clients that have fully verified their accounts and have sufficient funds deposited are eligible to participate
• A client who wants to enter the competition must have at least one verified XM Standard or Ultra Low account held in their name
• Ten winners will be selected and rewarded based on their trading performance after the competition period has concluded
• The cash prizes applicable to the ten winners of the competition will be added to their trading balance

XM Competition example

To better understand how XM Competitions look in practice, let’s look at an example of an already concluded contest – the Seven Day Showdown.

Here is a brief description of the terms of the competition:

• $15,000 prize pool
• 2,171 social participants
• 7-day competition period
• Top 20 highest ranked traders awarded cash prizes
• $5,000 awarded to the contest winner
• $2,5000 for runner-up
• $1,500 for third place
• $200 account balance to enter the competition
• XM Standard account required

Traders had to compete in absolute returns over the course of 7 days and the winner delivered over 4,383% in returns.

As evident from the contest description, such competitions are for the best of the best who can consistently deliver incredible results and top the charts.

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HFM Competitions

HF Markets is another FX and CFD brokerage that frequently offers trading competitions to its broad client base around the world.

What sets HFM apart from the competition is the fact that the firm also offers cash prizes for demo account competitions. In fact, there are two distinct types of trading contests on HFM – for live accounts and for demo accounts.

Monthly $1,000 contests are a mainstay at HF Markets and each month has a dedicated leaderboard to identify the winner for the month.

The terms for participation in the HFM contest are threefold:

• Contestants must have a minimum account balance of $500
• Contestants must enter the competition before the 7th of the month
• Contestants must have a live premium account

As for other auxiliary terms, similar terms apply to HFM contests as well:

• Traders cannot enter the contest using multiple accounts held under their name or under a family member
• The contestant trader must be of legal age and have a verified live account under their name
• Traders residing in China and/or Bangladesh are not eligible to participate
• The top trader and the winner of the contest will be the one with the highest percentage return over the course of the month
• All deposits and withdrawals are taken into account during the contest period and do not count towards the contest returns
• HFM reserves the right to disqualify any contestant if they suspect a violation of the contest rules

HFM demo contest

As already mentioned, HFM also offers contests for demo account holders. The first, second, and third places give traders cash prizes that are credited to live accounts.

There is no monetary risk for traders that enter the demo contest, as these are held only on practice accounts with simulated funds. However, the winners over the duration of the monthly contest receive cash prizes:

• $2,000 for first place
• $1,000 for second place
• $500 for third place

The same terms and conditions that apply to live contests also apply to the demo contest. Traders can view the leaderboard to see who is on the top spot at any given moment.

The demo contest is a great and risk-free way for demo traders to generate the necessary funds to continue trading on a live account. While the probability of winning such a contest may be slim, exceptionally talented traders can take full advantage of the opportunity.

Sign up with HFM now

Key takeaways from forex trading competitions and contests

• Forex brokers frequently organize trading competitions to increase engagement among active clients and reward the top performers
• Terms and conditions apply to trading competitions, such as the use of only one verified live account
• XM and HF Markets offer some of the most popular trading contests on the market – with an active leaderboard and a diversity of contests with varying cash prize pools. HFM also offers trading contests for demo account holders, including cash prizes that are credited to live accounts
• Winning a trading contest requires commitment, mental preparedness and a consistently profitable trading strategy
• Trading contests are notorious for being difficult, with the top-performers delivering 4-figure percentage returns

FAQ on forex trading competitions