Introduction to Forex Rebate Schemes
Forex rebate schemes are a great way to lower the cost of your forex trading. Since every trader’s objective is to make money, any expenses that can be eliminated will help towards reaching that objective. It’s a well-known fact that brokers primarily make their money by charging either a commission, a spread or even both. In this guide, we want to explore the cTrader rebate schemes that are available and how you can sign up with them.
One of the largest sources of customer acquisition for brokers is through business introducers, commonly known as Introducing Brokers or IBs. Brokers pay IBs part of the money they earn from each client the IB refers. Introducing brokers are essentially affiliates. Affiliates are common in every industry, as are cashback or rebate schemes. Some IBs came up with the idea of rebating part of what they earn from the broker back to the trader. This is the hook that helps them to attract clients which they will refer to brokers. There is a lot of legitimate forex cashback or rebate services out there. But just like any special offer that you hear of in the forex trading world, be cautious.
Trusted cTrader Rebate Sites
Just as there are many, many forex brokers in existence, there are also many forex rebate sites. In the same way that you would be very careful about which broker you deposit money with, you should be cautious about which forex rebate site you subscribe for. Here are some things to consider;
- You will only ever deposit with your broker, never the forex rebate site. Rebate sites are rarely regulated and therefore not authorized to receive deposits.
- Does the site promote hundreds of brokers? If they do, they probably haven’t thoroughly vetted all of those brokers.
- Don’t assume the broker is reputable just because they are featured on the rebate site. Some sites allow brokers to pay to be promoted.
- Check if the site has received negative reviews for not paying out rebates owed to their users.
- How does the rebate site settle your rebates? Some can pay them directly into your forex trading account, other pay via PayPal or other eWallets.
We are pleased to recommend two very well established forex rebate sites that cooperate with brokers giving cTrader rebates.
ForestParkFX is one of the most prestigious forex rebate sites. The company is based in the United States and is registered with the CFTC. Unlike its competitors, the company doesn’t hide behind a generic website. ForestParkFX is run by CEO Justin Hertzberg Esq., a very public figure in the online trading world, on all continents. The company also has multiple FX industry veterans on its payroll, thus making its legitimacy almost unquestionable.
ForestParkFX work with multiple cTrader brokers. By signing up with any of those brokers via ForestParkFX, you can get cashback on your cTrader trading activities. Currently, ForestParkFX works with some of our favourite cTrader brokers, such as Pepperstone, IC Markets and FxPro.
Cashback Forex is another top-rated forex rebate site which was established back in 2008. According to SimilarWeb statistics from April 2019, over 60,000 traders visit the Cashback Forex website each month. The company offers rebates from 30 brokers, which in our opinion is a healthy amount. The brokers listed are regulated and reputable. Cashback Forex offers three different payout formats, which are either in the format of monthly cashback, paid directly into your brokerage account or as a discount on your spreads or commission as you trade. The company advertises it offers 24-hour support to its users and claims they will beat any competitor rates.
How do cTrader Rebate Schemes Work?
To take advantage of any of the forex rebates listed above, you will need to register directly with the provider. You need an account with the cashback site so they can calculate your rebates and eventually pay them out to you. Before opening the account, the first step is to choose a provider, then select a broker. Find the offer you want from the options available on their site, take into account multiple offers are available for the same broker.
Risks of Forex Rebates
The purpose of these forex rebates is to help you make more money from trading forex, make sure those offers do precisely that. Make sure the rebate provider is not marking up on your spreads. You may get a higher rebate based on paying higher fees, and that doesn’t help you in any way. It’s also crucial that these offers won’t push you towards signing up with a broker you are not entirely sure. Always check for reviews. If someone had a bad experience, they would be sure to inform others.