Forex cashback rebate programs are gaining in popularity among traders, especially those involved in trading binary options and online sports betting. Many industries have begun to offer rebates to middlemen that bring them new clients, and this business model is quickly moving into the forex market. The rebates help traders increase the range of profitable trades and lower the cost of trading. They’re especially beneficial for traders using short time frames, or scalping.
Cashback rebates are usually paid 20 to 25 days after the end of the month. Some rebate companies pay early in the month, while others take longer. This means that it is important to understand the terms of payment before investing. It’s always best to check with your broker before committing. Traders should also understand that rebates are only paid after a trader has made a trade.
When trading with forex cashback rebates, it’s important to note that brokers don’t always share the rebates with all traders. Some brokers may not have a local office or deal with language problems, which may make it hard for them to reach a wide range of potential clients. If this is the case, rebate services may be willing to share their commission with brokers.
Most forex rebate programs are similar to the rewards programs that many consumers already participate in. In some cases, the rebates are fixed in US dollars, while others are relative to the amount of trade turnover. Recipients can choose to receive their rebates on a daily, weekly or monthly basis. To participate, traders need to register on a rebate service website, go through the required identification process, and then register with a partner broker. Once they’ve registered, they can then connect their personal accounts to the partner broker. Once connected, they’ll receive a payment for each transaction made with the partner broker.
Many cashback rebate providers offer tiered rebate programs that vary in amount, but the average rebate is about $3. A percentage of this can be as low as $1.50 or as high as 85 percent. The rebates can add up quickly, particularly if you make multiple trades in a day or month. In addition, some brokers offer additional bonuses as well, which can add up to additional savings.