Volume rebates | Forex Factory

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Volume rebates

  • #1
  • First Post: Mar 12, 2015 10:14pm Mar 12, 2015 10:14pm
How many of you trade with brokerages which give volume rebates?

I'm curious why does FX brokerages gives rebates when we trade high volume. Yes, I know its to encourage clients to trade more every month, but looking at the size one must trade to get the rebates; I believe most likely the traders who can get the rebates are likely to be consistently profitable and trading big size.

Does this mean brokerages likes big size profitable traders to stay with them?
  • #2
  • Mar 12, 2015 10:25pm Mar 12, 2015 10:25pm
Rebates is incentive promotion to attract newbies ...
MT4/MT5 EAs/Indicators/Alerts coder
  • #3
  • Mar 12, 2015 11:14pm Mar 12, 2015 11:14pm
Quoting shibboleth
How many of you trade with brokerages which give volume rebates? I'm curious why does FX brokerages gives rebates when we trade high volume. Yes, I know its to encourage clients to trade more every month, but looking at the size one must trade to get the rebates; I believe most likely the traders who can get the rebates are likely to be consistently profitable and trading big size. Does this mean brokerages likes big size profitable traders to stay with them?
A broker will offer rebates to satisfy a high volume trader in some cases. But mostly, rebates are offered to IB's as compensation to drive business to the broker. You might think that it's a broker giving the rebate, but a lot of the time, it's the IB.

I work with IB's that do all the hard work, and I provide liquidity in exchange, I will offer a slight discount on the costs, which the IB will sometimes partially provide to the client.

Happy Trading!
  • #4
  • Mar 12, 2015 11:21pm Mar 12, 2015 11:21pm
Quoting VolTrader23
{quote} You might think that it's a broker giving the rebate, but a lot of the time, it's the IB.
Exactly.
MT4/MT5 EAs/Indicators/Alerts coder
  • #5
  • Mar 13, 2015 2:19am Mar 13, 2015 2:19am
Quoting shibboleth
How many of you trade with brokerages which give volume rebates? I'm curious why does FX brokerages gives rebates when we trade high volume. Yes, I know its to encourage clients to trade more every month, but looking at the size one must trade to get the rebates; I believe most likely the traders who can get the rebates are likely to be consistently profitable and trading big size. Does this mean brokerages likes big size profitable traders to stay with them?
Here you go friend.Rebates for all size but makes sure they dont mark up the spread or commission form the original accounts otherwise there is no point.
If you let rebates accumulate for a year it is can turn into a nice amount to buy some drinks for X-mas or New Years party or something like that

https://www.cashbackforex.com/

I HAVE NO AFFILIATION WITH THIS IB AND THERE ARE PLENTY OTHERS ON THE WEB.

Rooi
We miss 100% of the shots we don't take
  • #6
  • Mar 16, 2015 7:41am Mar 16, 2015 7:41am
Quoting Rooi
{quote} Here you go friend.Rebates for all size but makes sure they dont mark up the spread or commission form the original accounts otherwise there is no point. If you let rebates accumulate for a year it is can turn into a nice amount to buy some drinks for X-mas or New Years party or something like that https://www.cashbackforex.com/ I HAVE NO AFFILIATION WITH THIS IB AND THERE ARE PLENTY OTHERS ON THE WEB. Rooi
Interesting, you using them?
  • #7
  • Mar 16, 2015 8:27am Mar 16, 2015 8:27am
Quoting shibboleth
{quote} Interesting, you using them?
No.I am an IB myself so no need to use them but they look pretty decent.
We miss 100% of the shots we don't take
  • #8
  • Mar 16, 2015 7:49pm Mar 16, 2015 7:49pm
Quoting Rooi
{quote} No.I am an IB myself so no need to use them but they look pretty decent.
Are you in the US Rooi?
  • #9
  • Mar 17, 2015 12:57am Mar 17, 2015 12:57am
Quoting VolTrader23
{quote} Are you in the US Rooi?
Hi

No,I'm in South-Africa
We miss 100% of the shots we don't take
  • #10
  • May 11, 2015 8:52am May 11, 2015 8:52am
Quoting shibboleth
How many of you trade with brokerages which give volume rebates?
My strategy of the forex trading is based entirely on making a profit in the form of rebates. On the account round the clock adviser works, whose task is to open and close orders, avoiding falling of Margin Level. And rebate company (FxCash.net) through which I registered with a broker pays me money every day.
  • #11
  • May 13, 2015 12:05am May 13, 2015 12:05am
Quoting Dsgua
{quote} My strategy of the forex trading is based entirely on making a profit in the form of rebates. On the account round the clock adviser works, whose task is to open and close orders, avoiding falling of Margin Level. And rebate company (FxCash.net) through which I registered with a broker pays me money every day.

can I know how much rebate you get a month?
  • #12
  • May 13, 2015 6:11am May 13, 2015 6:11am
On the basis of the four-year experience I can say that the income is between 10 and 20 percent of amount of the deposit per month. Sometimes I need to send a part of this income to the account in order to maintain the Margin Level. In general I can say that net income has never been less than 5% per month of the amount in the account.
These data are quite reliable because they are based not only on my own accounts, but on the accounts of people who have entrusted me to manage their money at Forex.
  • #13
  • May 13, 2015 6:18am May 13, 2015 6:18am
Quoting Dsgua
These data are quite reliable because they are based not only on my own accounts, but on the accounts of people who have entrusted me to manage their money at Forex.
Wowww ... and do they know that you aren't a trader but just a rebate collector ?
MT4/MT5 EAs/Indicators/Alerts coder
  • #14
  • May 13, 2015 7:45am May 13, 2015 7:45am
Quoting FerruFx
{quote} Wowww ... and do they know that you aren't a trader but just a rebate collector ?
Yes of course. Anyone who wants to trust me to manage their money in Forex, does not give me the money. The money is in the account of the owner, and I manage this account by means of my advisor. Therefore, the owner of money is fully informed.
I can not agree with the fact that I am not a trader. I am a trader whose strategy is based on making a profit in the form of rebates. It does not violate any rules or laws. And it's not as easy as it might seem at first glance.
  • #15
  • May 13, 2015 9:38am May 13, 2015 9:38am
Quoting Dsgua
{quote} It does not violate any rules or laws.
It didn't said that!
MT4/MT5 EAs/Indicators/Alerts coder
  • #16
  • May 13, 2015 8:00pm May 13, 2015 8:00pm
Quoting Dsgua
And it's not as easy as it might seem at first glance.
yes, you still have to protect the capital sum - it not just about churning volume

what i'm curious is ultimately the rebate must come from someone's pocket and that party (which should be the party that execute our trades) must have a greater benefit than the rebates given. The only source of revenue at the end of line, I can think of is the spread. More volume = more spread profit for them. Even though some of the big volume traders are profitable, the brokers can still earn because they have someone to take the opposite trade and they earn the spread
  • #17
  • May 14, 2015 5:38am May 14, 2015 5:38am
Quoting Dsgua
{quote} My strategy of the forex trading is based entirely on making a profit in the form of rebates. On the account round the clock adviser works, whose task is to open and close orders, avoiding falling of Margin Level. And rebate company (FxCash.net) through which I registered with a broker pays me money every day.
Collecting rebates is enough to cover spreads ??(otherwise it's not possible to earn from it)My Hotforex rebates with CBF cover about 35% of spread cost, but in no means more.
Your strategy really sounds odd to me
  • #18
  • May 14, 2015 6:13am May 14, 2015 6:13am
can someone explain how these systems work?

I have seen many trading systems that use EA and profit from rebate, but many other systems are using EA and profiting also from trading, though i have no idea how. they open and then close the trade in one second or less, but they open big lots. still dont know how, because most of the time they are profiting.

if anyone knows how, explain.

Dsgua , tell me how your strategy works, i will consider depositing and handing you the account if it is consistent.


thank you.
  • #19
  • May 14, 2015 8:10am May 14, 2015 8:10am
there are many brokers which give you rebates if you trade above a certain volume per month - the ones I know if you have to minimum trade a few hundred standard lots. The rebates increases if you churn thousands of standard lots.

So theoretically if you have a system that only manage to break even, you can pocket the rebates. its not that easy to break even at high volume - remember if you hold overnight you might have to pay swap.

Also the money is not much if you don't exceed thousand standard lots- even 1k standard lots is not that great amount of rebates. How many retail trader exceed 1k standard lots per month?

So in the end, I find it is most beneficial for large size profitable traders - its like a bonus to them
  • #20
  • May 14, 2015 8:25am May 14, 2015 8:25am
I'll be glad to answer all the questions tomorrow. Today is my birthday, and the party is about to begin
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