Forex rebates programs have become increasingly popular over the last few years, as they allow a trader to reduce the costs of trading. Forex brokerages profit through the spread and/or commission charged to a trader. Spreads and commissions ultimately eat into a traders profits or increase a losing trader’s losses. Forex rebates see traders receive a portion of these costs back from their brokerage either directly into their trading accounts or via a third party.
The rebate program operation is based on receiving a commission for each trade you make. Quite simply a trading rebate is a cash return on the trade you place. The size of this cash return will vary on the frequency of your forex trading or any other commodity or CFD you may be trading, the size of the positions you trade and the forex broker that you are aligned to.
Forex Rebates have always been a way of brokers to compensate the traders their spread and commission expenses. In other words, it is a simple commission sharing scheme between your broker and yourself. When trading 1 lot on EUR/USD with the spread of 3 pips, you end up paying a sum of 30 USD to the broker. While many brokers keep the funds to themselves, there are some brokers that give a share of this commission back to you as a part of loyalty program or a forex rebates bonus promotion.
If you are really concerned about your profit on the forex market you should definitely use one of the mayor forex rebate providers. Forex rebates are extremely effective way to boost your profit, because you can get real cash back on every trade you make, no matter you win or lose. If used right, forex cash back could boost your annual profit by 30% depending on the frequency of trades. Forex cash back helps you trade more profitable. Even if you are on a bad run, losing lots of money, rebates will help you get some of your money back.
To sum up, forex rebates are for everybody and they are a definite must for a serious forex trader. It’s free and absolutely secure without any risks. Since the money you get in return depends on the number and size of the trades you take (regardless of whether these were winning trades or not), those who are most active and trade the biggest positions stand to benefit the most.