What is Forex cash back?
Content :
• What does cashback mean?
• How to make more money using forex cashback?
• How to Join a Forex Cashback Plan?
What does forex cashback mean?
Forex cashback is a payment rebated to traders for every trade done, Forex Brokers share the rebates they earn from every trade made by the forex traders. whatever they got a loss or win trades.
Cashback is becoming standard for most brokers in the forex market. It’s also becoming a standard tool for traders to maximize profit.
Simply Forex Cashback is the most profitable cashback methodology and also the same with a cashback affiliate program among all cashback traditional methods in the world.
How Does It Work?
When you open a brokerage account through cashback brokers, the brokerage pays us part of their spread or commission earnings for every swap you make as compensation for referring a client to them. We then share the majority of our revenue 80% with you, paying you a cash rebate for each trade you make as thank you for signing up with us. Your spreads and trading conditions remain the same as if you had opened an account directly with your current forex broker. The only difference is, as our client you earn extra cash per trade, making trading through us more profitable than opening direct with the broker.
As known in any market, losses are as important as profits. One might even say they are more important. In the world of trading, you’re not always going to make a profit, but you will always have losses.
For this reason, traders need to always look to reduce their losses.
Subsequently, Forex rebates are paid to forex traders in several ways.
cashback is sometimes held by the forex brokers and withdrawn on a monthly basis by the traders.
Sometimes, the money is instead rebated by reducing the commission a trader pays on new trades.
The mechanism by which a trader receives their cashback rebate varies from broker to broker and from one rebate provider to another.
Cashback like this is now becoming popular not just amongst forex market, but in the binary options too.
Many of these industries give Cashback to an affiliated person that introduce new clients to their platforms. By which called forex affiliate program
Forex cashback can increase a trader’s scope to make profitable trades. By cutting down the trading cost for each trade, trades that would previously have been too marginal to consider can become feasible. This is particularly true when trading on short time frames and scalping.
How to make more money using forex cashback?
Cashback is usually either calculated on a round turn per lot, or on a spread. In the case of round turns per lot, the rebates average out of approximately $3 per forex trading lot.
In some cases, they are as low as $1.50, while in other instances, they can be as high as $7. This cashback can quickly sum up if you are doing multiple trades a day, or a hundred trades a month.
If a commission at the broker is low, the cashback can be as low as $1.50.
The basic round lot cashback needs to be taken into account before assessing the rebate – it’s not just a case of choosing the highest forex cashback brokers. And, remember, you are paying for all the services a broker is offering you.
Some forex brokers provide more value-add services, research, and tools and can, thus, justify charging more.
In the case of spreads, cashback repeats are typically around 0.5 pips, though they can vary a lot, so shop around.
Spread rebates can be as low as 0.1 pips and as high as 1.3 pips.
Some cashback rebate providers offer a tiered system, where the discount increases with more forex trade. Cashback providers are sharing the introducing commission they get from brokers with their customers. Thus, for the cashback rebate provider, it builds sense to rebate a higher percentage of each commission as the number of trades increases.
When you open an account with a new broker, you will frequently obtain a welcome bonus in the strain of cash to trade with.
Of course, this equates to yet another saving and is something to take into consideration when selecting a broker.
