Investing in a forex broker is not as simple as locating the best deal. You must first consider the basic commission and spread of the broker. Then, you should determine the rebate you are entitled to. Some brokers offer rebates of up to 85 percent of the commission. Some brokers also offer a welcome bonus to their new clients.
The amount of the rebate depends on your trading system and broker. If you want to trade with the best forex broker, choose a platform with rebates that are more than 50 percent of the spread. In addition, make sure to check the terms and conditions of the broker. Some brokers do not offer rebates at all.
To participate in a forex broker rebate program, you need to link your trading account with the rebate provider. Then, your broker will pay the rebate provider a part of the commission it receives and then divides the commission with you. Depending on your broker, you may be eligible to receive your forex rebate on a daily, weekly, or monthly basis. Some brokers may also offer an auto rebate feature.
A forex rebate is often based on the size and number of trades you make. Traders who hold the largest positions will usually get the highest rebates. The downside to forex rebates is that you may be tempted to trade blindly following rebates without considering the actual cost of your trades. This could result in higher overall transaction costs.
Forex rebate programs are popular among forex traders. They help traders reduce costs and improve their win rate. Forex rebates come in the form of commissions, spread reductions, or cash payments. These can be received directly from your forex broker or through a third party. You can choose to receive your rebate through the bank wire, Paypal, or Skrill.
Forex rebates are a sweetener to your trading experience, but they should never be your primary focus. Rather, they should serve as an extra source of income. Eventually, forex rebates are added to your profit/loss statement and affect your overall performance. Traders should keep in mind that they should be focused on identifying the best opportunities in the market. If rebates become an obsession, they will likely not be able to focus on making a profit in the long run.
If you’re looking for a good forex broker rebate program, try FXTM, which is based in Cyprus. They offer a wide variety of trading services for more than a hundred different tradable instruments. They also have low spreads (starting at 0.6 pips per lot), and a rebate program for South Africa and CySEC clients.
There are many factors to consider before choosing a forex broker. One of the most important factors is the spread. As more brokers compete for your business, it’s important to find one that is not only competitive but also offers value-added services.