Getting Cash Back From Your Forex Broker
Many forex traders are not aquainted with the fact that there are online businesses offering a cash refund on every lot traded. Granted the whole idea of getting a rebate is a revolutionary new idea and has in reality only started to become popular in the last 1-2 years.
The forex broker reimbursement program permits you to earn back a percentage of the spread you pay on each trade you make. Rebates can get as high as 0.7 pip or $7 which is of course significant if you take into account that typical market spreads for major currency pairs can change between 0.9 and 3 pips. Below is an example of how much you can get as a refund on your trades. To use an example you are receiving a 0.7 pip rebate on a trade for which you pay a market spread of 2 pip. This means that you lower your transaction costs by (0.7 / 2) * 100 = 35% ! This can greatly benefit the profitability of your forex trading account.
If you are trading 100 lots per month with a refund of $5, that amounts to $500 per month or $6000 per year. This is money you would otherwise simply give to the broker and for which you have to do nothing at all. Those people that use Metatrader EAs and trade a large volume of trades can also benefit substantially from using trading rebates. Some robot traders can trade as many as 2000 trades a month. That really translates into a nice amount at the end of the month.
For example, if you are trading 100 lots per month with a refund of $5, that amounts to $500 per month or $6000 per year. This is money you would otherwise simply give to the broker and for which you have to do nothing at all. Those people that use Metatrader EAs and trade a large volume of trades can also benefit substantially from using trading rebates. Some robot traders can trade as many as 2000 trades a month. That really translates into a nice amount at the end of the month.
There is a considerably large range of Forex brokers that join in this program, so it is easy to find a reliable forex broker no matter what your trading methodology or the size of your account. By selecting one of these brokers you have a good start for success in the Forex market. You will be trading at a top quality broker while you can keep your transaction costs low by benefiting from a refund program.
Typically a forex refund program includes an Introducing Broker, or referring broker receiving a commission from the broker, and then returning a percentage of their commission to the client. It does mean a mutually beneficial situation where everybody gets paid. Getting a refund for every lot you trade makes logical sense. If you trade large volumes you can easily get a percentage of the spread from an increasing number of participating forex brokers. The way I see it is it is better to have it in your pocket than the brokers, so why not? Sometimes there really is such a thing as a free ride.