: Which Is To Be Considered –Rebate Or Cash Back Forex
You often come across forex rebates given to customers. There should not be any misinterpretations as to why broker giving cash back to their customers, especially from a certain ECN broker. You should forex rebates also know that there are some introducing broker commission schemes where the brokers give 0.3 pips to 0.7 pips for every trade closed by a customer referred by the Introducing broker (IB) and this is referred to as cash back forex. Now, we have a clear picture of what is forex rebate, then how should we do the calculations regarding the cash back when we have an account under some IB links?
Suppose we consider us getting 0.7 pips per trade and if everyday there are trades around 20 times a day on a single pair then, and trading at 0.5 lots then at the end of one month, we gain around $1,400. This is got by the client even if the business is at gain or loss. And if we have to look at it annually it is $16,800. There is a wide way of view about the forex rebate provided by some IB, and we should know that we trade the forex market pairs, and each pair has their own spread rate. It is our duty to sign up through IB, otherwise, all the spread profit will automatically reach the broker.
You often come across forex rebates given to customers. There should not be any misinterpretations as to why broker giving cash back to their customers, especially from a certain ECN broker. You should forex rebates also know that there are some introducing broker commission schemes where the brokers give 0.3 pips to 0.7 pips for every trade closed by a customer referred by the Introducing broker (IB) and this is referred to as cash back forex. Now, we have a clear picture of what is forex rebate, then how should we do the calculations regarding the cash back when we have an account under some IB links?
Suppose we consider us getting 0.7 pips per trade and if everyday there are trades around 20 times a day on a single pair then, and trading at 0.5 lots then at the end of one month, we gain around $1,400. This is got by the client even if the business is at gain or loss. And if we have to look at it annually it is $16,800. There is a wide way of view about the forex rebate provided by some IB, and we should know that we trade the forex market pairs, and each pair has their own spread rate. It is our duty to sign up through IB, otherwise, all the spread profit will automatically reach the broker.
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