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What is Rebate ?

About Rebate or Cashback

Forex trading can be a profitable endeavor, but it can also be costly. That’s why many traders are turning to forex rebates as a way to save money on their trades. In this article, we’ll provide a comprehensive guide to forex rebates, including what they are, how they work, and the benefits they offer.

Forex rebate or forex cashback is a partial return of trading fees ( spreads or commissions ) when a trader enters the market. Forex rebates are offered to traders who make transactions in the foreign exchange market. This is often provided by rebate service providers, one of which is pipscash. Forex rebates are given a percentage of the spread or commission paid by the trader to the broker.

How Does Forex Rebate Work?

To take advantage of forex rebates, traders must sign up for a rebate program with a rebate provider. The rebate provider acts as an intermediary between the trader and the broker. Once the rebate program is set up, the trader makes trades as usual, and the rebate provider tracks the trades and credits the rebates to the trader’s

Benefits of Forex Rebates

There are several benefits to using forex rebates, including:

  1. Cost savings: Forex rebates can significantly reduce the cost of trading, particularly for high-volume traders.
  2. Increased profitability: By lowering the cost of trading, forex rebates can help traders increase their profitability.
  3. Passive income: Forex rebates can provide traders with a source of passive income, as rebates are credited automatically for every trade.
  4. Flexibility: Forex rebates can be used for future trades or withdrawn, giving traders more flexibility in managing their funds.

Another reason why traders choose to join to broker through these forex rebate companies is because they don’t have enough capital to get the best spreads directly from the broker. Most brokers only offer the best (thinnest) spreads to their clients who trade very large volumes.

Example Rebate Calculation :

Rebate rate is $8 per lot standard

Trading volume in a month is 500 lot

Rebate = $8 * 500 = $4,000

The rebate is $4,000 from transactions made by the trader both in profit and loss.

Are you interested in using the rebate service? You can start by opening a  portal account at pipscash and start linking your trading account to our IB. If you encounter problems, you can contact pipscash customer support.

 

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