Forex Trading Rebates are an incentive to trade, but they should not be the main focus of your trading strategy. Instead, rebates should be added as an extra source of income. Your trading profits are real money and the forex rebates you earn will eventually be added to your profit/loss calculation. Instead of focusing on forex rebates, try thinking of them as sweeteners that you earn on a side-sale basis.
The rebates can range from $1 to $4 per lot of trading, and they are based on the spread and commission you pay. The amount of the rebate will depend on your broker and the volume of trades you make, but even a small rebate can amount to hundreds of dollars a month. You may also be able to get a tiered rebate program, meaning that you can earn more if you trade more often.
Forex trading rebates are paid in various forms, including fixed amounts in US dollars, relative amounts based on the trade volume, and percentage-based programs. Some programs are credited daily, weekly, or monthly. If you want to participate in a rebate program, you can register on the website of a broker, such as Traders Union, and go through a verification process. Once you’re approved, you can open an account with your broker and connect your personal accounts. Once you connect your personal accounts, you’ll receive payments for every trade you make.
Forex rebates work differently for different traders. Some rebates require you to trade 10 lots in a month to earn a rebate of $50. Others require you to close all of your trades to qualify. In either case, the process is easy and only takes a few minutes. Once completed, you’ll earn cash for each trade you make for the rest of your account life.
When used properly, forex rebates offer several benefits. They provide the benefit of reduced spreads, which can dramatically improve your profits. While they can be useful in some situations, they’re not a substitute for thorough analysis. Traders should make sure they choose a broker who will pay them a fair rebate.
Forex rebates reduce the cost of transactions by reducing commissions, spreads, and cash-back. As a result, they help make trading worthwhile. Forex rebates are offered in three forms – spread reductions, daily trading account deposits, and monthly cash payments. Rebates can be paid via bank wire, Paypal, or Skrill.
Forex rebates vary from broker to broker. Established brokers often have better rebates than newer brokers. If you are new to trading, it’s a good idea to look for a broker that has a track record. Forex brokers that are newer and have a limited track record may be less legitimate.
Forex rebates are not the only way to increase your profits. Forex cashback programs often provide other incentives as well, such as commission reduction and return of spreads. It’s important to find a broker that offers forex trading rebates so you can make a profit with your trades.