All traders can participate in the demo contests that are quite popular among the on-line Forex brokers. Demo contests serve as some sort of a promotional campaign for the broker and provide a good chance for the talented and clever traders to earn some money without risking anything, since the deposit is not required in such competitions.
The demo contests are also useful to test new strategies, communicate with other traders and to get some fun from them. The prizes can go not only to the winner but to the first several places, which increases the attractiveness of such contests. Unlike real contests, the more risky approach is often used in demo Forex contests — traders use very big positions, don't use stop-loss and apply highest possible leverage. That results in the huge profits for the lucky winners and the wiped accounts for the 90% of participants.
Playing safe and using some low-risk money management won't make you a winner or even a top 10 runner up. This type of bonuses is great for the risky traders that prefer extraordinary approaches to the Forex market. The most common prize for the demo contests is money, but sometimes it can be some piece of electronics, a touristic trip or anything else valuable. But one of the greatest prizes for such contests is a personal trading experience.