In order to make use of this forex rebate, you must first understand how it works. These rebates are paid as a percentage of the cost of a transaction, and this helps in lowering the spread, thus improving your profit ratio. For example, if you trade EUR/USD, you would get a one-pip rebate for every transaction, thus making your net spread two ppi. However, be aware that not all cashback programs are the same. Some have a different policy when it comes to specific currencies or brokers, and you should understand the cashback terms and conditions of each program before signing up.
Forex cashback is particularly popular among scalpers and those who trade in binary options, as it helps in reducing the cost of trading and increasing the scope of the trader. The amount of rebates that you receive is usually calculated per round turn or per lot traded, and will typically be around $3 per forex trading lot.
If you’re planning on using cashback forex, make sure to check its terms and conditions and the exchange rate of the forex broker you’re using. The best cashback forex broker should charge no more than 1 pip spread for the same currency pair. This is a much better deal than the cash back offer.
Some forex brokers offer a rebate that ranges from a few cents to seven dollars. The amount of rebate depends on the commission structure, the basic lot amount, and the services offered by the forex broker. Higher rebates usually come from top forex brokers. In addition, the cashback can be used to negotiate a lower spread or a larger percentage of the spread.
Cashback forex is a benefit for the broker as well as the trader. Traders can withdraw the cashback to a bank account, PayPal, NETELLER, or EcoPayz. As long as they follow the withdrawal terms, the money will be credited to their accounts within three business days.
Forex rebates work very similarly to cashback, and they enable traders to make up for trading expenses by getting cash rebates from their brokers. The trader registers with the rebate service and follows the link to the broker’s website. Once he makes a successful trade, the broker shares a portion of the spread with the rebate service.
Traders who wish to participate in cashback forex programs should choose their broker carefully. While the rebate amounts and conditions vary from rebate site to rebate site, they are usually fixed in US dollars. Moreover, rebates are credited to traders on a daily, weekly, or monthly basis, according to the rebate plan. To join, the trader must sign up on the rebate service website, go through the identification process, and then open an account with a partner broker. Once the account has been verified, the trader will receive a rebate payment for each transaction.
