Are you getting a rebate for every trade you make?
If you aren't, then you're throwing money out the window.
It works like this:
Most traditional forex brokers profit off you by pocketing the difference between the bid and ask prices (known as the "spread"). You can, nevertheless, effectively lower the spread by getting a rebate for each trade you make. Indeed, you can obtain these rebates simply by opening a forex account through an introducing broker (commonly referred to in the industry as an "IB"). An IB has an agreement with a forex broker to advertise the broker's services and secure customers for it. If a trader opens an account with the broker through an IB, the broker gives a fixed amount of money to that IB for every lot traded by that customer. Most IBs just keep that commission for
themselves. There are, however, certain IBs which give part of their commission back to the customer in the form of a rebate.
Most of these rebate-giving IBs have relationships with a single broker or a few brokers. This means that you would be very limited in your selection of a broker. For
instance, you may want to open an account with Broker A or Broker B, but if the rebate-giving IB has no relationship with either of them, you're simply out of luck.
However, our choice for a rebate-giving IB,
CashBackForex, has relationships with over thirty (30) brokers. Here is a list of its forex brokers with the rebates and other details:
If you're considering opening a forex account, you might as well open one through an IB like CashBackForex and receive rebates every month. The spreads will remain the same as if you opened an account directly with one of these brokers. Overall, its a win-win situation for you and the IB.
(Please note: As clearly stated upon visiting the site, CashBackForex does not accept U.S. residents as clients. If you're a U.S. resident interested in opening a forex account and obtaining rebates, you should instead visit CashBackForexUSA, an NFA-registered IB.)
You're now probably asking: Why isn't everyone doing this? Why would anyone open an account directly with one of these brokers instead of going through a rebate-giving IB?
The likely answer: Most people just don't know about it. As there is no analogous situation in the stock brokerage industry, this may contribute to the average trader simpy not being aware of forex IBs and the possibility of receiving rebates.