УSuccessful Forex trading is unrealistic without clear implementation of the principles competent risk management. An important part of this workflow is careful control of dangerous moments when opening trading positions. It also includes managing the size of drawdowns and losses on negative transactions.

Of course, any Forex trading strategy will never be complete no negative deals. You can hypothetically conduct a successful trade, built on extremely adventurous systems (Martingale, Anti-Martingale and others), but the probability of a quick bankruptcy is extremely high with some situations.

In order not to lose the trade balance overnight, it is necessary when trading control risks, minimize losses, and cut own costs. If these principles are not followed, the profit will be disappear, and the base part of the deposit will be reset over time.

To the inevitable losses of every trader who makes money on Forex, is the spread. This is the commission that the brokerage company charges from speculators for the range of services provided.

However, today there is an opportunity to reduce the negative the effect of the brokerage spread on the course of the trading process. Often it succeeds get very significant reductions. I mean specific a tool called a rebate.

Let's take a closer look at this function, which competent traders successfully use and save a lot of funds.

Rebate on Forex - what is it

This is a 'refund' or 'discount'. So, a rebate in the Forex market is called a partial refund by a broker funds to the trader paid by him as a spread for making new deals.

Regardless of the performance of the position, the broker will always take the spread. The use of rebate allows you to create a return of part of this commission, also regardless of the outcome of the order.

The spread is almost always partially paid off immediately after the active trade is closed. Although there are brokerage companies that make a deferral for calculating the rebate in Forex trading. It happens that returns arrive at the end of the trading day, sometimes in the evening at Friday. Usually, the rebate funds go to the trader on the trading account in end of the next month.

Initially, it may seem that rebates to brokers bring shortfalls profit, because they give back part of the spread. And due to these fees, they predominantly exist. However, thanks to rebates, new traders and are encouraged to make larger deals the rest clients.

Traders, knowing about the broker's rebate, trade more actively and thanks to an increase in the frequency of trading operations, in total, pay more than the spread. The company begins to earn more thanks to the installation of a rebate and additionally new groups of clients are attracted.

For brokers, rebates give another positive moment - they come high net worth traders. For traders making large transactions, thanks to such returns, it is possible to save significant amounts.

Important! The rebate option in Forex is an extremely effective solution. It allows traders to save part of the money from the paid spread. The tool provides brokers with advertising and marketing benefits!

In fact, the idea of rebate was not developed and implemented for forex traders, and to pay with members of the affiliate network. They should have been part of the spread from trades attracted traders receive as a reward.

Gradually, brokers appreciated the marketing benefits of the rebate and began distribute it to your clients. It is now being optimized and transforms into different options.

How to use a brokerage rebate

The modern Forex industry involves getting a rebate for trading in two ways:

• from a brokerage company;
• from a special rebate service.

There are forex brokers that independently offer traders payment of a part of the paid spread. Here is the procedure for obtaining a rebate simple - you need to register with the company, create and replenish trading deposit, start making money on Forex.

Examples of such brokers are:

• RoboForex
• Instaforex
• AMarkets, etc

But an alternative option is to receive a refund from the spread through specialized rebate services. In this case, you will have to later only trade through a broker offered by this service.

The money will be returned to the wallet of your personal account or immediately directly to a trading account with a broker. Then the trader withdraws the funds to the ESP or to bank card. As a rule, rebate services offer many mechanisms for withdrawing returned money.

Our rebate seovis provides a higher percentage of return - up to 85-90%.

How much money can you make on the rebate

Also, the exact values cannot be distinguished here. Everything will be conditioned the trading volume that the trader uses.

For example, let's say trading deals on the GBP / USD currency pair have a spread of 3 item. When a lot is traded, the monetary spread will be 30 dollars. The average rebate is 55%. Therefore, a trader with each deal will return $ 16.5. For daily trading with 5 such trades, there will be return $ 82.5.

For all participants in the Forex market, rebates are beneficial opportunity. Traders thus manage to make money thanks to minimization of trading costs and costs of trading operations. Often this option provides tangible benefits, especially for day traders, scalpers and pipers.