Forex rebates are a wonderful way to encourage traders to trade more and earn more profits. These rebates can also be a great way for new traders to learn how to trade. Rebates are often based on the amount of trades a person makes, and the size of the position. Traders who have the largest positions are the ones who stand to benefit most. However, there are some risks to following rebates blindly. Many people do not consider the spread of the broker when comparing rebates, and may end up paying more for their total transaction costs.
Forex rebates are the portion of the transaction cost that is returned to the client. This reduces the spread, increasing the trader’s win ratio. Traders can get as much as two pips of spread back by using rebate sites. However, some traders don’t have the capital to trade directly with brokers. This is because most brokers only offer the best spreads to traders with high volume.
To determine the amount of rebates offered by different brokers, it is helpful to use rebate calculators. Many rebate sites have rebate calculators, but these are based on minimum fixed spreads and don’t take into account floating spreads. While these calculators are a great tool for comparison purposes, the amounts may not be accurate.
Before looking for rebate services, active traders should decide on a broker. While it’s tempting to use a broker that’s on a rebate service list, you should keep in mind the conditions of those rebates. One common mistake is to think that a bigger rebate amount means a better broker, but the opposite is true. A large rebate amount might just mean that the broker has a large client base.
Forex rebate sites should be thoroughly investigated before signing up. Look for customer feedback on the website. You can also read about forex rebate sites on Forex forums. There are several free tools you can use to make informed decisions. For example, you can use MarketMilk, a free visual technical analysis tool. It makes analyzing market data much simpler.