Broker Rebates

Hi I have notices that there are many Broker rebate websites such as

http://www.rebatesforex.com
http://www.fxrebategurus.com

They promise a rebate of a few pips per trade. Is it a good idea to use this offering or are there any potential pitfalls associated with it?

I would be careful in respect to using Introducing Brokers to get rebates as some people in the past have experienced inflated spreads when using an IB. Whether this is the fault of the IB or the actual Broker is often up for debate and a muddy issue.

Not to say that you shouldn't look for a good rebate program. I use The Aslan Group (they don't have their own website and are only word of mouth) because I know them to be ethical, honest and pay out good rebates. Lots of people use cashbackforex and I've not heard any negative issues with them.

Poke around. There are plenty of 'em and so long as you are diligent in researching your IB, you should be fine to use this type of program.

Cheers

Theoretically you shouldn't experience inflated spreads through an introducing broker if the actual broker is a ECN broker who executes your trades in the market. Also look for a reputable ECN broker with their own marketplace like Dukascopy. (note there are only appx 10 ECN forex marketplaces in the world) Their rebate can go as high as 49%.

I use tradecomm and they don't change any market conditions plus I don't have to wait till the end of each month when they get the money from the brokers