Did you know that you can get forex rebates for each and every trade that you make with your forex broker? It simply means that whether you win or lose with your forex trade, you can be guaranteed of forex rebates for those trades.
Where Do The Forex Rebates Come From?
With the intense competition among forex brokers for the accounts of new forex investors, they are tying up with affiliate companies who promote their forex brokerage firms to gain more clients.
These affiliates promote the forex brokers and entice prospective clients into opening new forex accounts for the broker they are promoting. They usually do this by offering additional services, like free trading signals or free forex robots, to help them with their forex trading. And some affiliates offer forex rebates as a way to attract clients.
For every client that the affiliates bring in to the forex brokers, they pay the affiliates commission. And the affiliates pass on part of these commissions in the form of forex rebates to the clients that they have signed up to the broker. This is where forex rebates come from.
Forex Rebates: How Do They Work?
If you sign up through a forex affiliate that offers forex account rebates, money would be returned to you every single time that you make a forex trade. The amount of forex rebate would depend on the volume of your trade and the percentage of rebate that you broker offers. Different forex brokers offer different amounts of rebates.
For example, if your forex broker offers 0.7 pips per round turn trade, you will receive $7 per round turn trade on a standard lot from your broker.
That may not be much when you view against the possible profits you can earn with your forex trading. But when you view it against the spread that these forex brokers apply on your trades as your payment for their services, these forex rebates are definitely worth it.
Again, using an example, when you trade the EUR-USD, you are probably paying a spread of 2 pips for every trade that you make. It simply means that the moment you execute a buy order at 1.5114, for example, the selling price is already at 1.5112 because of the 2-pip spread. It means that you already paid 2 pips, which is equivalent to $20, to your forex broker if you decide to sell it immediately at that same price quote.
If the price of EUR-USD rises by 2 pips, the selling price would already be hitting your earlier buying price, giving you a breakeven should you decide to close your trade. You gain nothing, you lose nothing. But if you had a forex rebate, you would effectively be gaining $7 from that breakeven trade.
It may not be that much. But if you would accumulate all the forex rebates that you would get from all the forex trades that you make, then it can certainly add up and improve your equity position.
Take advantage of forex rebates. Forex brokers offer them to those who know that they exist. So why not take advantage of this knowledge?
Check out how much forex rebates you can get from your forex broker.
