Forex Trading Rebates

What are forex rebates? A lot of forex traders are already aware of trading rebates or have at least heard something about them but are skeptical if they really works. Some are afraid that the spread will widen because of that, etc. But the broker trading conditions stay exactly the same, or in fact they get even better! Because you get a piece of the spread back on every trade, winning and losing trades are eligible for rebates! A big percentage of traders are using cash back rebates for their forex brokers and they get big benefits from them. Rebates are basically a piece of the spread (or commission if you are trading with an ECN broker) that you get payed back to you on every trade you execute. So basically you get better trading conditions with rebates because a piece of the spread is returned to you (in total you pay less spread). This means more profit on every trade. Traders that execute a lot of trades can make $1000 or more profits only from rebates. Increased profitability Let's take HotForex for example:rnYou open an EUR/USD trade and pay 1.6 pips spread right away. But if your open your account with HotForex Refund they give you 0.5 pips back, so instead of paying 1.6 pips on every trade the cost is now only 1.1 pips. And now imagine the increased profitability of each trade with rebates. Let's look at the monthly numbers: If you trade a total volume of 50 lots monthly and get 0.5 pips back on every trade or in other words $5 cash back per every round turn lot, that makes 50lots x $5 cash back = $250 extra monthly profits without changing anything! Who pays for the rebates? Where does the rebate come from? It's a part of the commission plan that affiliates and IB's get from brokers for bringing them clients. Basically the IB's give you a piece of their revenue. There are also other rebate services like Best Forex Rebates for brokers like TradeFort, FBS, FxOptimax, InstaForex and others...