What is Cashback Forex?
There are many trader still do not know about what is cashback forex or forex rebates, especially for new trader, but for traders who had long been involved in this industry, cashback forex is not something new for them.
Cashback forex or forex rebates is a refund of a portion of the spread or commission has been paid to a broker on your transaction. Example: when you buy EURUSD 1 lot standard (contract size of 100 000) with spread 2 pips, during the order transaction you will immediately minus (-) 2 pips or $20, that means you have to pay spread/commission to the broker 2 pips or $20 for your transaction.
By join our cashback forex system, the spreads or commissions you have already paid to broker will be refunded to you in part by using our cashback payment system, we pay your cashback using bank wire or e-currency method (PayPal, Skrill, Neteller, webmoney, Perpect Money or FasaPay), please see all cashback payment systems here.
For example, we offer cashback rate 0.75 pips, so you will get cashback $ 7.5 per standard lot, if your weekly trades is 20 lot, you will get weekly cashback forex 20 lots x $7.5 = $150. Cashback rates could be the number of pips, the amount of USD/lot or the percentage of spreads/commissions that you paid to brokers.
Cashback forex is an additional income which allows the trader to increase the profit or reduces loss of each transaction, because cashback forex given for profit or loss trades. May be you ask, where we get the funds to pay your cashback?, we receive commissions on every client who open broker account through our IB (network) link without spread markup or change trading conditions of the broker, and the most of the commission we receive will be return to you, cashback rate for some broker reach 80% of the IB revenue.
The amount cashback forex you earn depends on three things:
- Cashback rate of broker you choose
- Currency pair you trades (for some broker cashback condition)
- The volume and the amount of transactions