Forex rebates are a great way to attract more active traders to your broker. Rebates help brokers attract more customers and increase their profits. They can also encourage traders to trade with riskier assets. Rebates are one of several outsourced business models used by brokers to gain more customers. Rebates are paid to intermediaries who promote their product and share a percentage of the commission with the broker.
Forex rebates work similarly to cashback programs. They give traders a chance to recoup their trading costs by earning extra cash on their closed positions. In order to receive a rebate, a trader must register with a rebate service and then follow an affiliate link to a broker’s website. The trader then pays a fixed spread to their broker, and the broker shares a portion of the commission with the rebate service and affiliates.
The rebate amount for a five-lot trade is $40. The trader will receive $32 back. However, the actual trading costs would be $68. Rebates will vary depending on the trading strategy used. Many websites will have a calculator to help traders estimate the rebate amount. These calculators will take into account the minimum fixed spread. They are a good tool for comparison purposes but may not be as accurate as those that give instant cash.
Some brokers have tiered rebate programs that increase the amount of money they can give out to clients. For example, if a trader makes $30m worth of commodities during a month, the rebate amount can be $10 per lot. However, if that trader makes several lots in a month, the rebates can rise to $85.
A rebate can help you increase your profit significantly. By reducing the amount of money you have to spend each trade, you can boost your annual profit by as much as 30%. Moreover, rebates can help you recover your losses and trade more profitably. These rebates help forex traders make up for the losses they incur in the course of their trading.
You can use a forex rebate calculator to determine your cashback. These calculators take into account the rebate rate for each lot and the volume traded. The result can vary depending on the currency pair you are trading against. It also takes into consideration the market price of the currency pair. Bitcoin, Ethereum, and LTC are all cryptocurrencies that are traded against the USD. Other currencies that can be traded against the USD include Gold.
FxCash is one of the most popular rebate services. Other options include Traders Union and Premium Trading. You can sign up with FxCash by clicking on the sign-up button.