NOTE: To the trigger crazy commercial member button pushing moderators, this is not commercial content...lol
Just curious to know if people have rebate accounts setup with their brokers?
If you don't know what that is or means, here is a short explanation:
Most, if not all major brokers offer rebates on the commission you pay to place an order. I don't know what the standard amount is, but for my broker it is 50%.
Again, i don't know what the average is so let's just use 50% for these examples.
If you get a 50% rebate on commission trades, that means for every trade made, you would get 50% of the commission you paid back at the end of the month.
So if you are paying $7 commission for a standard lot, you would get $3.50 back.
Depending on what kind of trader you are, this can be a couple of bucks that you get back each month, or it could be thousands.
Here is an example of the latter, and why this can be extremely lucrative:
Let's say your trade size is 1 standard lot, and you make 100 trades per day, that all break even. 100 x 3.5 is $350 in rebates every trading day. Even though you are making $0 on each trade, you are still making thousands each month from rebates alone.
Obviously this is a dramatic example, as most don't trade this frequently, but for the few that do, rebates can be very lucrative.
A more realistic example is if you are a scalper making 1 lot trades at 10 trades per day. Well, that's an extra $35 bucks each day, which adds up quickly.
Profit potential depends on how large your trades are and how frequently you trade. Just though everyone should know about rebates, since most major brokers offer them.
Watch out for all the affiliates out there by the way. People use affiliating marketing to sign people to brokers through their affiliate links, which is why i made that note at the top of this post.
Cheers!
Just curious to know if people have rebate accounts setup with their brokers?
If you don't know what that is or means, here is a short explanation:
Most, if not all major brokers offer rebates on the commission you pay to place an order. I don't know what the standard amount is, but for my broker it is 50%.
Again, i don't know what the average is so let's just use 50% for these examples.
If you get a 50% rebate on commission trades, that means for every trade made, you would get 50% of the commission you paid back at the end of the month.
So if you are paying $7 commission for a standard lot, you would get $3.50 back.
Depending on what kind of trader you are, this can be a couple of bucks that you get back each month, or it could be thousands.
Here is an example of the latter, and why this can be extremely lucrative:
Let's say your trade size is 1 standard lot, and you make 100 trades per day, that all break even. 100 x 3.5 is $350 in rebates every trading day. Even though you are making $0 on each trade, you are still making thousands each month from rebates alone.
Obviously this is a dramatic example, as most don't trade this frequently, but for the few that do, rebates can be very lucrative.
A more realistic example is if you are a scalper making 1 lot trades at 10 trades per day. Well, that's an extra $35 bucks each day, which adds up quickly.
Profit potential depends on how large your trades are and how frequently you trade. Just though everyone should know about rebates, since most major brokers offer them.
Watch out for all the affiliates out there by the way. People use affiliating marketing to sign people to brokers through their affiliate links, which is why i made that note at the top of this post.
Cheers!