Forex rebates are a relatively new concept, but a great way for traders to maximize their Forex profits. There are a number of companies in the market today who cater expressly to provide rebates to individual traders. The explosion in the currency market over the past 5 years has been incredible. No longer is the currency market the preserve of the rich and well connected investor. Today, anyone with an internet connection and a laptop can partake in this activity.
Today there are literally hundreds of forex brokers offering their services to the investment community. One way they can promote their services is to recruit a number of agents, or introducing brokers, to help them sign up new clients. In return, these introducing brokers are paid a fee by the forex broker for each new client that signs up through the introducer. This fee will depend on how much trading the client does with the broker, in terms of how much volume of notional currency is traded.
Forex is trading lots. Each lot is a notional sum of $100,000. Typically, the introducer is paid a commission of around $10 for each lot which is traded by the new client. In an attempt to persuade traders to join the broker they are promoting, what some companies and organizations are now doing is to offer a rebate of part of this commission. This is usually around half - so that the trader will receive around $5 for each lot he or she trades. Over a period of weeks or month, this soon adds up to a substantial sum if the trader is trading regularly.
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