Forex Rebates, Bonuses Still Received Even When Loss Trading

Do you know about forex rebates? This partnership will benefit you as well as entertainment when trading is losing. How to get it?

Check out the following discussion to find out more information. Happy reading!

 

Summary

  • Forex rebate is a distribution of IB/agent commissions that the broker earns and distributes to you as a trader .
  • Forex rebate comes from the broker’s income for every close transaction of the trader . The income is not fully owned by them because they are also allocated for bank costs, operations, profits, and commissions to IBs or referrals .

What is Forex Rebate?

Foreign exchange or forex , or buying and selling of foreign currencies is an activity that is widely carried out by modern society. The reason is, the transaction is one of the promising forms of investment.

In the money market, we know the term forex rebate , or forex rebate . In simple terms, forex rebate is a distribution of IB commission that the broker earns and distributes to you as a trader .

How to calculate Forex rebate is to calculate per transaction by ignoring win or loss conditions .

Of course, before you can get a rebate , you need to register with an official broker registered with the Ministry of Trade (Kemendag).

Once registered, you must prepare a certain amount of deposit funds to start trading . The nominal can vary according to the broker you are registered with.

Forex rebates become a kind of entertainment if your trade happens to be a loss or becomes a bonus when trading is successful. Of course this can be a bit more comforting than getting nothing in return.

In this partnership, there are 3 parties involved, namely:

  1. Broker — a forex trading broker or service provider .
  2. Agent/IB — broker partner in charge of finding trader clients .
  3. Client — you/customer/ trader .

 

Initially, the broker will give a commission to the agent/IB as a reward for attracting new traders . After that, the IB will distribute the commission to the trader . Well , the commission that comes from the IB is what we call forex rebate .

The question is, why would an IB want to share his money with you? of course this is one of the marketing strategies so that they can attract more new traders .

Fellow IBs will compete with each other to offer something so that prospective traders are willing to join through them.

Rebates _

As part of a system, forex rebate has a calculation, how it works, to the time of calculation. What you should note, each broker may have its own system.

So, before making a choice to the broker, try to do some research first.

 

Forex rebate calculation

Basically, the forex rebate comes from the broker’s income for every close transaction from the trader . The income is not fully owned by them because they are also allocated for bank costs, operations, profits, and commissions to IBs or referrals .

Commissions to IBs or referrals are what they then continue to become IB commissions and rebates .

For example, ABG broker will distribute the income. They pay the bank 0.5 pips. Then, meet the operating costs of 0.2 pips.

Finally, the commission for IB is 1 pips. From 1 pips in IB, they channel 0.4 pips to traders . So, pips pocketed 0.6 pips.

Pip stands for Price Interest Point which measures the exchange rate between two currencies. For example, the exchange rate of the euro to the dollar rose from US$ 1.2220 to US$ 1.2221. So, the increase of US$ 0.0001 is 1 pip.

The calculation system will be different for each broker. So even with the nominal funds disbursed.

However, one rule that applies everywhere is “the rebate is not higher than the IB commission from the broker”. In fact, you should be suspicious if you find a bombastic offer.

 

Forex Rebate Giving Scheme

Currently, we know 3 mechanisms for giving forex rebates to traders , including:

 

In Pips

This one forex rebate provides a bonus unit of pips per transaction. Generally, bonuses are given between 0.5 to 1.5 pips pips per transaction for major pairs .

Meanwhile, the rewards will be higher for cross pairs and commodity instruments such as gold, silver, oil, and so on.

In the form of LOT

The LOT scheme is an alternative to pips. This unit is more flexible because it can be given in pips or in certain currencies, such as dollars.

Forex calculations will be simpler if you use one currency. You don’t need to convert because the rebate will be given at US$ 5 per LOT, US$ 7 per LOT, US$ 10 per LOT, and so on.

If you trade up to 10 times per week, you can earn $50.

In Percentage Bentuk

The scheme of giving rebates through percentages is more flexible than the two systems above. For example, if the IB promises a 50% rebate , then the bonus you always receive is 50%. Although, that 50% may or may not be of high value.

Forex rebate Calculation Time

There is no specific provision when the IB must calculate the forex rebate . It could be calculated on a daily, weekly, or monthly basis. However, usually, IBs will do the calculations as soon as they get commission from the broker/broker.

From this, we can conclude that the rebate calculation time tends to follow the broker’s policy. Each rebate calculation period has pluses and minuses.

With daily rebates , the repetitions are frequent, but not many. If given monthly, although it tends to be longer, the amount will be greater.

There are many IBs in Indonesia today. You can type IB (followed by the broker you want).

The next thing can be quite tricky because you have to find an IB that you can trust or who can live up to your expectations.

To measure a trusted IB, there are 3 general rules that we follow, namely experience, testimonials, and client support. One of the trusted IB is Sentraegold.

Then, how do IBs distribute rebates to traders ? There are 3 ways we usually do, including:

  1. By internal transfer in the trader ‘s account .
  2. Utilize common payment methods such as wire -transfer or e- currency .
  3. Using local bank services (if trader and IB are in the same country).

Rebate Calculation Basis

The IB calculates the rebate based on the commission report that the broker receives. If there is a calculation error, there must be something wrong between the IB calculation and the broker’s report.

Many people are nervous because they think that IBs have the capacity to see clients’ trades because they can calculate rebates from each transaction. You need to know, the IB knows his client’s trading from the broker’s report.

IBs also never have access to snoop transactions. So, even though the rebate calculation can be done in Meta Trader , the IB can never see your transactions.

 

Advantages and Disadvantages of Forex Rebate

Giving forex rebates is indeed interesting. Especially with the claim that funds will still be given no matter you win or lose .

Here are some advantages and disadvantages of forex rebates :

Advantages of Forex rebate

The advantages of forex rebates include:

  1. You will get a bonus even if you are losing .
  2. Forex rebate will increase trading profitability .
  3. Rebates are very easy to get, namely by registering an account through an IB.
  4. You can join this feature even though you already have a trading account
  5. The rebate bonus can be an added bonus and motivation, especially if you are a trader
  6. Forex rebates can be obtained without additional fees or making a certain deposit.
  7. The forex rebate feature is very beneficial for those of you who have a high trading frequency . Because, the profit will be more if you trade more often.

Disadvantages of Forex rebate

Here are the disadvantages of forex rebates :

  1. Rebates will make you lazy. Admit it or not, there must be a thought “why do I bother looking for profit if the origin of trading can get a rebate “.
  2. Can lead to recklessness. This is because you tend to feel calm because there is a trade-off for every transaction— loss .
  3. The existence of forex rebates can reduce the motivation of traders to upgrade trading skills .
  4. Because they feel safe, rebates also have the potential to make traders neglect financial management.
  5. Forex rebates can result in overtrading . Because, the rebate bonus for each trade is directly proportional to the number of transactions made.

Measured Trading , Don’t Be Inconsequential !

That’s the discussion about forex rebates . Although this feature can give you instant profits, you need to consider many factors and always focus on the trading strategy you have.

Do not be tempted by profits to neglect other aspects.

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