If
there was a way that you could take any Forex trading
strategy or system and enhance its success without adding
any additional risk, would you be interested? It does
sound pretty good, right?
No,
this isn't some magic strategy that guarantees profits,
but we can take any trading style and automatically
improve the results with a well kept secret that some
traders take advantage of.
Using
A Volume Rebate To Improve Your Bottom line
Whether
you trade a small or a large account, what some fail
to realize is that transaction costs can eat up your
profits. In an average trading year let’s say
you traded a total of 500 lots. This means that on a
typical spread of 3 pips you paid $15,000 in spreads
during the year. So this means that the broker made
at least $15,000 from your trading, no matter if you
made money or not.
However,
there is a well kept secret in the industry that can
improve the results of your system by minimizing these
costs through an IB volume rebate.
An
Introducing Broker (IB) is a an entity that brings business
to Forex dealing firms. These are firms that you will
likely be trading with anyway. By using an IB and receiving
a volume rebate, you will help increase your Forex trading
success and minimize your transaction costs.
Out
Of The Broker's Pocket And Into Yours
Doesn’t
using a middle man normally cost you more? Here’s
how it works. When you open an account through an IB
you still see the same spreads and pricing at the dealer
of your choice. You receive the same level of great
customer service from your dealer, plus you have the
personalized customer service touch of the IB. The IB
is only compensated by the dealing firm through the
bid/ask spread. So it costs you nothing to work with
them. The dealing firm simply makes a little bit less,
but I am sure you can live with that, right? The broker
catagorizes this as a cost of advertising.
As
an IB, we have a relationship with several brokers and
they want your business. Because of the volume we can
provide, the brokers may offer perks such as an instant
bonus on deposits and volume rebates. The deposit bonus
will put your account up before you even make your first
trade. The volume rebates will put money into your pocket
for every lot you trade. In the example above with a
$3.00 IB volume rebate per lot, you effectively reduce
your transaction costs by $1,500, adding more money
to your account. The rebates are typically paid on a
monthly basis and are added directly to the client's
trading account.
Who
This Will Benefit
Whether
you are using an automated trading system, manually
trading, a beginning trader or a seasoned institutional
fund, Forex rebates can benefit your trading. FXDealerSelect
is an IB for all the firms listed on this site, and
currently have negotiated with several firms to provide
you with a volume rebate. The firms that are currently
taking part in this program are listed below. You may
click on either of the logos to get more information
about the specific rebate offered from the individual
brokers.
The rebates are only attainable through the programs
that are put in place by FX Dealer Select.
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