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Foreign exchange rebates turned out to be so!

{}Posted in2023/2/25 1:50:33 | 3Browse

Forex bestforexrebatecompany best forex rebate company not a new word, many traders rebatesforexbroker his agent (i.e. introducing cashback forex) to talk about rebate terms, but do not really know how the rebate is coming At the beginning is a lot of brokers through agents to develop the market and business, the rebate is as the agents labor compensation, by the broker in the customer on the basis of each transaction, to calculate the amount of rebate paid as the market evolves. This cost-cutting model is easy to attract customers, so agents are happy to provide rebates to customers, which can effectively reduce customer trading spreads, reduce transaction costs rebates are a flexible marketing strategy, both for brokers, agents and traders are beneficial As the name implies, rebates spell price, just under the role of market competition, each platform and agent The rebate policy is much the same Why do rebates appear?  Lets look at how the cooperation between brokers and customers is normally carried out customers open accounts directly with brokers without any middleman, then customers need to pay the full cost of spreads, forexrebatecommissions, etc. Suppose you trade GBP/USD with a straight-through processing model (STP) broker, your lowest spread under normal market conditions may be 2-3 points If you trade with an Electronic Communications Network (ECN) broker, the spread may only be about 1-2 pips, but you will have to pay a commission fee for each trade according to the transaction procedure. The commission model has changed In the rebate model, brokers increase the amount of customers through the agent channel, bringing more income agents to solicit customers, and will recommend customers to cooperate with the broker to open a trading account and get commission, and subsequently can also get more commission because customers continue to trade in order to deepen cooperation with customers, agents voluntarily take out part of the commission to share with customers to encourage them to open a trading account everyone The ultimate reason why commission activities are so popular is that it can bring more customers and improve customer conversion rate In the foreign exchange industry, the commission we often refer to can actually be divided into two types: ● One refers to the commission provided by the broker to the agent The agent introduces customers to the foreign exchange broker, and then gets a certain amount of commission from the broker This is the main source of income for the agent The agent can agree with the broker on different ways to pay the commission Some brokers pay a percentage of the commission according to the trading spread of the recommended customer, such as the agent gets 30% of the spread; some brokers pay the commission according to the volume of the customers transaction; some are depending on how much the customer deposits to pay the commission Of course, if the agent The more customers recommended, the higher the trading volume, the better the rebate conditions naturally For example, the agents rebate process may be like this: 1. nbsp;3. The agent then takes out a portion of this 30% and returns it to the customer ● The other refers to the agent and the customer to share the rebate The foreign exchange agent from the broker to get the commission for introducing customers, take out a portion and share with the customer this is very popular with trading customers, because it directly reduces the cost of trading for customers For example, the customer The rebate can be calculated as follows: 1. 1 standard lot of the customer received a $4 rebate; 2. If the customer traded 85 standard lots in a month, then he will receive $340 rebate For customers, other additional services such as intelligent trading system (EA) and virtual private server (VPS), etc., can not and direct cash rebate After all, the EA and VPS cant be estimated directly, and the rebate is real in the account in the case of other trading conditions are the same, can provide 20% rebate agents than those without rebates more attractive Forex rebate cycle Brokers give agents rebates are usually divided into real-time rebates, daily rebates, weekly rebates, monthly rebates or even longer cycle The commission cycle is mainly negotiated between the two sides to reach some platform commission is updated in real time, the agent is more willing to weekly or daily return, so as not to drag too long usually foreign exchange commission is directly transferred to the customers trading account, or is the customers Alipay, NetBank, Cai Pai Tong, etc., the commission to account time is basically very fast commission withdrawal can support the RMB, USD There are some brokers commission way is more However, the commission between some agents and customers is often only verbal agreement, the cycle may be a monthly settlement which is likely to lead to default situations Therefore, it is recommended that the volume of capital and trading volume of trading customers and agents also sign a formal The commission agreement, to avoid disputes between the two sides but no evidence Conclusion In forex trading, everyone wants to maximize profits as much as possible and the commission model as a strategy that benefits brokers, agents and customers of the three parties, is naturally very popular However, traders should still pay attention to the point that agents are introduced to brokers, mainly to brokers to introduce customer flow traders customers The actual account opening and deposit process is carried out on the brokers platform, but only through the link provided by the agent to enter the brokers platform for traders, the rebate is indeed very attractive, but more important than that is the integrity of the agent and the regulatory qualifications of the brokers platform
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