Forex Rebates – How To Earn Money Every Time You Trade

Category : Forex Trading

Most people who are relatively new to forex trading search around on the internet and ultimately decide which forex broker they want to open an account with. That's completely fine, but nowadays you should definitely consider joining a broker through a forex rebate website instead.

Forex rebates are basically where you earn money back from each trade that you open and close. It doesn't matter whether you win or lose because you will always get back a certain percentage of the trade.

The reason these forex rebate companies are able to offer you these payments is because they are essentially acting as introducing brokers. In other words they earn similar commissions themselves as reward for referring traders to the various different brokers that they work with. The brokers are more than happy to give back a small percentage of their profits to both individual traders and the rebate companies themselves because they still make very decent profits.

Not all rebate companies are the same and you need to exercise caution. In some cases you will have to trade with higher spreads as a result of opening an account with a broker through one of these rebate websites. So the amount of cash you will receive back per trade will be largely cancelled out by the higher spreads that you will have to pay.

The best rebate sites will offer spreads that are exactly the same as the broker offers normally. This way you will get the full benefit of these small, but not insignificant commissions.

Indeed the commissions may seem quite small on an individual trade basis, but when you total up all of your trades for any given month, the total cash you will earn back from the rebate company can be quite a tidy amount. Plus if you are a day trader or you like to trade multiple lots at any one time, you can look forward to some decent payouts.

The only danger is that you deliberately attempt to place more and more trades in order to boost your commissions, and end up generating more losing trades as a result. However most people just continue trading as they would normally, and consider any rebates they may receive as an additional bonus.

The point is that it is well worth joining a broker or two through one of these rebate companies. The commissions you will earn may not exactly be life-changing amounts, but it is better than going straight to the broker's website and signing up that way, because if you do that then you won't receive any cash back at all.

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Click here to read about the various different forex brokers that you can join, and to read a full CashBackForex review.

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