Broker rebates – what, why and how?

  • This topic has 3 replies, 1 voice, and was last updated 6 days ago by Steve.
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  • #195364 Reply
    FibTrader33

      I’m looking at a trading firm that is promising to give me a “rebate” every time I trade? They are saying to me that every month they will pay me a dollar amount back I trade a certain amount of FX. has anyone heard of this before? Why would they do this?

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      • #195421 Reply
        Christian Harris
        Participant

          Brokers offer rebates as a way to attract and retain traders by giving back a small portion of the spreads or commissions generated from trading.

          Rebates incentivise higher trading volumes, benefiting brokers in the long run.

          While rebates can be a legitimate perk, be cautious if a broker uses rebates as a major selling point, especially if the trading conditions, like spreads or execution quality, are subpar.

          Always ensure the broker is reputable, regulated, and prioritises fair trading conditions over gimmicks.

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        • #195424 Reply
          FibTrader33

            Ok, reassuring to hear that they are a “real” thing. I ended spending more time looking into it at this firm though and I ain’t hitting their monthly trading volumes which are over $10 million for any sort of meaningful cash rebate. One day maybe but not yet lol

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            • #195488 Reply
              Steve

                I don’t know what ‘level’ you trade at but yes, rebates are generally more of a thing for high volume traders and professional investors.

                If you do reach the sort of trading volumes I’ve found some providers will be open to a conversation on tailored models so worth picking up the phone to your account manager or support team.

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