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What is Rebate?!
What is rebate?
Lots of people when I encounter come and ask me about the notion of Rebate. We have already talked about it before but here we answer you once again. In fact it was odd to me why so many of our readers still don’t know what rebate is!
The story becomes funnier where when I explained rebate notion to one friend he went to his home and after his calculations he called me and said ‘if he had known rebate service sooner, he could earn 200000 dollars in last 4years’ and now the amount is lost!
Please read the following article carefully to know what is rebate! We assure you won’t lose anything!
What is rebate or CashBack?
When you open your account in a broker via an IB or introducing broker, a little amount of commission based on your lot size traded is paid by the broker to the IB. it’s been a few years since IBs in their parts, are sharing the commissions earned with the clients themselves to encourage them more to trade. This sharing part has reached in some IBs to even 90% of that commission.
Assume you do 1 lot size trade on EUR/USD. Depending on the brokers and their spreads, some brokers even give 10 dollars on each lot size to the IBs. And some IBs pay 8 dollars of the mentioned amount to the clients. Whether you position is closed by profit or loss this so called 8 dollars belongs always to you. Suppose if you are an ordinary scalper and if you do 10 lot size trade, your rebates per month would about 1700 dollar. This is not bad number for sure.
Why should we use rebate program?
Well I thought about it for a long time, the truth is I didn’t find any reason a trader don’t want to use this service!! Additional cash back to you with doing nothing! Who don’t like it!!
Fictional reasons not to use this service!
Some of the readers told us they have heard that if their accounts open via IB, some brokers may widen the spreads!!! This is wrong. This can be the case for very rare and unreliable brokers. And you can even check it easily and recognize it and inform the broker of this.
Does IB have access to my account history trades?! Of course not. In all reliable brokers the only information which IBs have are accounts numbers and your lot sizes traded and the commissions earned. So nothing to be worried about.
Another reader had asked us: I’m not a scalper and my lot size volume traded don’t reach even 10 lot per month. Why should I use it?!
Well your volume is not much and your rebate would be a small amount but the point is using the service has no expense and no disturb. In other words you lose nothing. So if the amount still small still good. I can use a proverb which exists in my country saying: nithing is better than nothing! Assume for 10lot sizes only 50 dollars are paid to you per month. The amount is small but this amount will be 600$ dollars at the end of the year which cannot be ignored easily.
Who is best IB according to me?
After so many years of experiencing lots of brokers and IBs, I myself have found a very good IB who is paying my rebate regularly and in any amount and I am satisfied with them totally. They are called BestForexCashBack.Com group. I know the management of the company and I know that they are expanding their brokers too. I believe they are paying highest rebates amongst all IBs.
Thanks for giving your time and see you soon again!