Hi, as FX is still really new to me, I've been doing quite a bit of trawling the internet and of course attending the pre-school and kindergarten at babypips school, but was wondering if anybody could give me their thoughts on rebate companies. How on earth can these people hand out money? is there some sort of catch?
Hope someone can enlighten me.
Thanks in advance
No there is no catch. I'm using rebate companies and it's great to get some extra money at the end of the month.
Brokers have standard affiliate programs that pay their IB's for bringing clients to them. But the IB's give you a part of their earnings back, so it's a win-win situation.
You can get 0.6pips or even more back on every trade and that's just great.
You can check out bestforexrebates.net or cashbackforex.com etc.
I've just noticed on rebatearmy.com website that Easy Forex are giving $5 per round turn, just makes me think how on earth can they give that much, in other words just how much money do these brokers make out of the "normal trader"
Verified Broker Support for Deltastock
FX-Men Honorary Member
Johannesburg, South Africa.
Well. How much do brokers make??? Now that would be telling!!! LOL!!! Let's say that they make enough but not as much as one may think i.e. their money is made on sheer volume of trades (unless of course they're a 'bucketshop') (and NO a market maker is not necessarily a 'bucketshop' before anybody 'starts' with me)!!! LOL!!!
But let me say this:
That does sound like a lot (no pun intended) i.e. $5. You'll notice that Hotforex (too) is offering $4 per round trip lot. I stand to be corrected here but I'll wager that those rebates are based on standard round trip lots not??? If somebody knows something I don't then please post here. Put it this way: it doesn't make sense to be able to trade let's say micro lots and earn $4 or $5 per round trip lot. If that were the case then one could simply sit all day and open and close positions (micro lots), lose the spread, and still profit from the rebates!!! Nice work if you can get it!!! LOL!!!
But no (to second somebody elses post): there's no 'catch' to rebates. Simply put: the rebate company is actually providing just another 'feeder channel' to the brokers affiliated with them is all. In other words: although the broker pays the rebate company who in turn pays the trader (or Introducing Broker for the rebate company i.e. one does not need to be an active trader to earn rebates but can simply be an Introducing Broker for the rebate company and still earn commissions without actually trading and those commissions can add up handsomely given enough time and effort on the part of the Introducing Broker for the rebate company) the broker is getting promoted by the rebate company in return. From the brokers point of view it's just another form of (cheaper???) advertising and marketing is all.
Thank you Dale, at last it has made sense how they can "give" this money away lol and I suppose it depends which broker you choose to get your rebates. I have been on rebate army's live chat and spoke to an administrator and they confirmed the rebates are based on a Standard Round Turn Lot, they were really helpful too.
Well, tere is a lot of threads even here in BB about this very subject. However it is not easy to evaluate a broker just like that. If you search in internet for GG Broker (Not an Actual one, just an invented name for the example) this is what you will commonly find:
"The Best Broker ever"
"They continuosly stop me out"
"They make me lose"
"No, in fact ia great broker"
And so on...
I've tried 4 brokers by now, i've started with forex.com and lost my money, but it was all my fault, iguess it is a great broker if you are a great trader. Then i switched to ibfx wich they claim to act as an STP but they not claim to be one, their spreads are fair enough but not for scalping, it suits for daytrading if you are using 1 hr charts, and they are good if order delays and lagging does not affect your trading style.
Anyway i've opened an account with Vantage FX, a true STP and little by little i am gathering funds to be able to trade with them but i'll keep my old IBFX account with just 100 usd for the payoneer card, if i close the account i lose the card.
One thing you will experience is after awhile you will be wanting to change broker, i guess it happens to all of us. Every broker has its uniques pros and cons. What i really recomnd you is before opening any live account you study everything about trading and do detective work investigating for a broker.
I strongly recommend x-rebate.com
I succeeded in Lucky Day contest 2 months ago and now I receive really good rebates.
Earlier I used caschback's, but now I prefer x-rebate as it has simple to use page.