What is forex cashback?
There are many trader still do not know about what forex cashback, especially for new trader, but for traders who had long been involved in this industry, forex rebate is not something new for them..
Forex cashback or forex rebate is a refund of a portion of the spread or commission that you have 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 using our forex rebate system, the spreads or commissions you have already paid will be refunded to you in part by using our rebate payment system, using a trading account (internal transfer), wire transfer or e-currency method.
For example we give rebate rate 0.75 pips, then you will get a rebates of $ 7.5/lot standars, if your weekly trades is 20 lot, you will get weekly forex cashback 20 lots x $7.5 = $150. Rebates rate could be the number of pips, the amount of USD/lot or percentage of the amount commission we received from brokers.
forex cashback is an additional income which allows the trader to increase the profit or reduces loss of each transaction, because forex rebate given for profit or loss condition. May be you ask from where we get the funds to pay your rebate ?, like to inform you, we receive commissions on every client who opens an account through our IB/Agent link without markup spread or trading commission, and the majority of the commission we return to you, up to 80% of the IB commissions.
Rebate amount you earn depends on three things:
- Rebates rate of broker you choose
- Currency pair you are trading
- The volume and the amount of transactions
Please use the forex cashback calculator to estimated your rebates.