Rebate on Forex represents a certain discount which is realized through a return to the trader of part of a spread or the commission. Regardless of that, profitable was a transaction or not, the trader anyway receives back the part of the means paid to the broker for transaction execution.
All traders in the Forex market know that each broker takes a certain payment for the account by means of spread or the commission for transaction execution. At the moment, there is a set of Internet services on spread return by means of which the trader has an opportunity to receive back a part of the charges paid for the trading activities. Rebate received by the means of such services accumulates and after in advance determined the period are paid to the trader. Rebate brings to the trader stable profit as in addition to earnings from trading, the broker returns the part of the spread, increasing the earned amount, and in the case of an unprofitable transaction partially offsets losses.
Who returns the spread to the trader?
Nowadays it is possible to find an uncountable number of companies which are ready to provide such service as a rebate. Return of spread can be performed by means of Forex broker or the foreign companies which are hereinafter referred to as Rebate services.
Rebate service is one of partnership options in the financial markets where the trader will receive not a certain part of broker company profit, but a given percent from partner remuneration of Rebate service.
The main objective for the broker partner is the attraction of new clients in the company with whom he can share a part of earning financial resources on their attraction. It is some kind of passing move in which everyone stands to gain: the broker has new clients, at traders the spreads is decreased, and Rebate service has a stable income from the involvement of new clients in the brokerage company.
How to use rebates safely?
- First of all, rebates have to be treated as additional bonuses, but not to consider them the decisive argument in the process of transaction opening. The amounts of the rebate aren't expecting a complete covering of possible losses from rash transactions which the account holder often makes in the heat of passion.
- It is necessary to pay attention to the percent of the rebate offered. Too high percent of return shall guard you as any fair broker, as well as Rebate service, won't give to the clients all profit which are almost got for transaction execution.
- Pay attention to the conditions of rebate provision. It is very important to count all costs for these or those financial instruments in advance.
Always it is necessary to remember that the success in the financial markets trading is caused by a complex of objective factors and competent trading decisions. In this case, rebates will become for the trader that one service which will increase the profitability of the conducted trade.