A welcome bonus in forex refers to a promotional offer provided by forex brokers to attract new traders to their platform. It is a type of incentive designed to encourage individuals to open an account and start trading. The welcome bonus typically comes in the form of a monetary reward or a percentage of the initial deposit made by the trader.

The purpose of a welcome bonus is twofold. Firstly, it serves as an enticement for potential traders to choose a particular broker over others. The bonus offers an additional boost to their trading capital, giving them more funds to potentially generate profits. Secondly, the bonus helps new traders familiarize themselves with the trading platform and gain experience without risking too much of their own money.

It's important to note that welcome bonuses usually come with terms and conditions that govern their usage. These conditions may include minimum trading volumes, time limits, or restrictions on withdrawing the bonus funds. Traders should carefully read and understand these terms before accepting a welcome bonus to ensure they align with their trading objectives and preferences.