Many forex traders are still not aware of the benefits of participating in a forex rebates program. This post aims to provide some key information as to how you can optimize your profits in forex trading using the forex rebates program.
Forex Rebates Program – What Is It
Forex rebate program is not a bonus program, but an incentive provided by forex brokers. Third parties also offer this program for either acquiring more clients or to keep existing ones. It involves returning a portion of the spread from each of the trades back to the clients themselves. As a result, you receive some money back into your trading account as and when you execute a trade.
It does not matter whether it is a winning or losing position. However, the forex rebates program often takes into account the number of trades you execute. This program works best when it is used with expert advisors that are designed to implement extreme scalping as you would be constantly be producing a lot of trading volume.
Opening a forex trading account on a broker’s platform that offers the rebates program does not in any way alter the trade conditions such as the spreads and several other features provided by the broker. The only difference between a direct account and a forex rebates account is that you get an opportunity to either optimize your profits per trade or reduce your losses to some extent in the latter case.
Each forex broker creates their own unique affiliate programs for attracting traders and investors. The affiliates of the broker are paid a commission for participating in the program. On the other hand, broker’s affiliates promise a part of the reward they receive for attracting customers. Intermediary companies that get customers to open accounts on the forex broker’s website are referred to as Rebate-services.
Forex Rebates Program – How Does It Work
Forex brokers that offer the rebates program often develop a special discounts system. It will be based on the trade volumes committed and executed by you. The larger the volume of trades executed by you, the larger will be the commission earned by the broker. In turn, the broker will share a bigger portion of the commission to you as part of the forex rebates program.
The concept is best explained with the help of an example. On average, if you execute 6 to 8 trades every day, it works out to about 30 to 40 transactions per week. On the basis of the trading volume, if the rebate rate is $1.50 for each trade, you will get back a maximum of $60 at the close of the week into your trading account. You will be paid this amount without taking into account as to how you traded during the course of the week, meaning whether you made profit or loss.
Optimize Your Profit In Forex Trading With Rebate Program
In the forex market, rebates refer to the partial refund of the commission or spread paid by you to the broker in order to open a trade. Initially, it might seem as though it not worth paying a great deal of attention to the forex rebates program when selecting a brokerage company. However, you will find in due course that the refund amount or the rebate received per month is at times more than the profit generated by you.
This is because the rebates are given for both profitable and unprofitable executed by you. For example, you may close all your monthly trades and have zero balance in your account. However, you will benefit from the rebate accruals credited to your account. Of course, it depends on the number of transactions executed by you. The more the number of transactions, the higher will be your payouts.
In general, if you are concerned about the profits you can make through forex trading, you should use one of the major brokerages that offer the forex rebates program. It is an extremely effective way of boosting your profits. If you use it right, the forex cashback program could boost your profits by about 30 percent depending on the volume of trades executed by you.
As you are rewarded for making more trades, irrespective of whether they are winning or losing trades, it is a good idea to enjoy the reward for the activity that you anyway involve in on a daily basis.
You become eligible for the rebates program when you sign up with a forex broker that offers the service. Many forex brokers also offer welcome bonuses when you sign up on their website through the rebates program. This can add hundreds, sometimes even thousands of dollars, to your trading account. You can use this money to buy and sell currency pairs.
You can part take in a forex rebates program even if you have already opened an account with an online forex broker. You just have to contact your existing broker in order to get the forex rebates program arranged for you.
If you are still in the process of learning forex trading, a rebates program is the best option to earn while you learn. When you are new to forex trading, you will inevitably lose some money. However, a rebates program helps you to get some money back into your account and to some extent take away the sting caused by these losses.
You can join a forex rebate program for free. This is because the main purpose of offering such a program is to promote forex brokerages. So, there is no reason why they should charge any membership fees or any other recurring fees. This would defeat the whole purpose of the program.
In conclusion, the forex rebates program is for everybody. It is definitely a must if you are a serious forex trader. It is not only free, but also absolutely secure as there are no risks involved. However, one thing that you have to keep in mind is that you should follow all of the basic rules and should not let cashback to really affect your forex trading activities. Overall, the forex rebates program is highly recommended as a cost saving method for you.