Forex Rebate

What Is Forex Rebate It?

 

 

Forex rebate is a division of the Commission obtained the IB from the Broker to the client or trader.

 

To make it easier to learn them, it's good to know our first agency system/IB/Partner in the forex broker. On the partnership system, the broker will offer commissions to agents/IB in the agent managed to attract clients/trader to join the forex broker.

• So there are3partieshere:BROKER,agent/IB,and clients
• Broker:isforex tradingservice providerparties.
• Agent/IB:is thecounterpartyof the brokerin charge ofsearching forthe customer/client/trader
• The client:is aclient orend userortrader.

 

Why IB want to share back to the client?

Of course on the basis of marketing strategies in the interest to attract new clients. So this IB will compete or compete to offer something more so that prospective clients interested in joining through the IB.

For easy, see the following illustration:

Mr. A opens an account at ABC through Broker agent Z

Then Mr. A normally do forex trading at ABC Brokerage, such as Open-EUR/USD.

When Mr. A close-up of a transaction of EUR/USD, agent Z would get a Commission (2 pips)

Since Mr. A bound forex rebate with the agent Z, then Mr. A will receive 0.4 Pips which is a rebate of any transaction which he did.

It should be noted or emphasized again that this rebate is not granted directly from the broker/trader to us. But the IB was the one who did. So, the next time you don't be misguided by claiming the rebate to the broker.

 

Quantity Rebate

Well, this is certainly a quantity rebate in price depending on the agreements offered by the IB to us/trader. It is certainly associated with commissions from the broker to IB is not possible if the IB was able to provide larger rebate of commissions received from brokers. Similarly, the rebate given IB IB may vary by one another, although they are partners of the same broker.

 

The Potential Rebate

Many think, ah kan most small rebate can also just 0.5 Pips? Whereas if we're trading right can profit up to 20 Pips?

He said: it is true in small unit rebate look once. However, if collected in specified time range, such as 1 month, the value of this rebate if the result would fair well together lho (unexpected). Especially if your trading high frequency (you often trade)

Example: With the setting of the LOT, the type of account, Leverage, in your trading 1 Pips equals $ 1. Then Your average day trading 4 times. Then in 1 month the potential rebates You: 4 x 25 (1 month) x 1 $ (Rebate) = $ 100/month

Arguably this Rebate provides an opportunity for us to acquire smaller spreads or can also mean extra income.

 

Conclusion

• Forexrebate is a divisionofIBCommissionbrokerwithus (trader)
• Rebategranteddoes notperhaps greaterthanthe spread.Becausein fact,the rebateis part ofthespread.
• The rebatewill remaineven ifwe receivetradingwe winorlose.
• The rebateis calculated every1st roundtransaction,and will beaggregatedandpaid atthe end of eachmonth orperiod of time.
• No matterthe type ofsizesmall/largetransactionaccounts,rebatecan still beretrieved.
• Greatrebategenerallyranges from0.3-1Pips,and is equivalent tohow manydollars
• Conversionrebateofpipto thedollar willdepend onlargelots,the size of the contract,