Rebate services on forex
- Analyst AZA
Rebate services on forex: what is it and whether to use them
Rebate service is useful for those who can count their money.
In connection with the active popularity and formation of the forex market as an independent and strong market, brokerage companies, which have become more and more numerous, became more active.
Forex brokers compete among themselves, seeking to attract more customers, and offer advantageous trading conditions and special services. One of which is the Rebate service on Forex.
The meaning of such a service is quite profitable: the rebate service makes payments in the form of a commission refund to the trader (in part).
But is everything so simple in reality? And on what data the services of brokerage firms are based?
Rebate Services is a kind of partner - a colleague of brokerage firms, whose profit is in the form of a reward. It is paid for each new participant involved in the exchange, as well as for its realized trade (trading activity).
After all, every trader pays a commission - a spread for using the services of brokerage firms: the broker charges a certain amount of money for opening a deal.
To increase the number of potential traders, as well as reduce the advertising value, brokers have developed special partner programs for services.
The main point of the service is that the broker is ready to share and pay a part of the commission, which he took from the trader.
In reality, the rebate services are the source of traffic: the partner receives a reward for the customer and in the future simply gives (partially) the profits from his services. Thus, a trader concluding an operation, regardless of the unprofitable or profitable nature of the transaction, receive a reward.
Despite such an attraction, rebate services have several shortcomings:
1) To receive payments on the rebate program, the player must fulfil several conditions that brokers require. For example, go to the affiliate link and open an account (regardless of the binding to the broker).
In the case of opening a partner account, and further profit-making, withdrawing funds in the future can be a problem: withdrawal of funds directly from the account of the service is often impossible. This is because for one trader you can open only one account, it must fulfil the conditions for obtaining a rebate, and many unscrupulous service employees, referring to this rule, are not able to pay money.
2) The second important drawback is the lack of transparency (concerning the commission)
Not all developed services have a good reputation and positive feedback among the participants. As a rule, most of the services generate accruals to their account once a week or a month, and therefore, some operations are simply lost.
Commissions may not be financed (that is, you do not get your part of the commission), due to the early closing of the transaction (a minute later than indicated in the conditions, there are many reasons), or under not implementing the conditions, those that the trader did not know Earlier. Also, there is a high risk of falling on rogues, scammers just want to cash in on you, and you will be disappointed not only in the Rebait program but also forex in general.
3) The third negative side is the imposition of certain conditions
This shortcoming is very logical: every rebate service has a whole range of trading brokerage companies and with these firms, it is highly recommended to cooperate.
And it's not strange, all forex brokers from this list are extremely high commission. But in addition to a large commission, they do not have the best reviews among firms, and also not a pure reputation.
Despite the thirst for free money and super offers, one should be extra careful not to invest in a little familiar company, do not register with suspicious partner companies.
Traders, often in pursuit of such shares, sooner or later become victims: in the pursuit of profit, they do not think and open a lot of transactions (lot high, unlimited amount), and subsequently lose large amounts, forever disappointed in brokers or the market.
Therefore, be as careful and cautious as possible: it is better to choose a reliable broker, but without tempting shares, than to be divorced for another divorce.
Well, if you dare, then carefully study all the conditions of the rebate service!
In the case of opening a partner account, and further profit-making, withdrawing funds in the future can be a problem: withdrawal of funds directly from the account of the service is often impossible. This is due to the fact that for one trader you can open only one account, it must fulfil the conditions for obtaining a rebate, and many unscrupulous service employees, referring to this rule, are not able to pay money.