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Author Topic: FX order rebates. Any risks in the spreads?  (Read 5553 times)

Offline nc!

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FX order rebates. Any risks in the spreads?
« on: January 23, 2012, 05:06:15 PM »
Hi there,

Companies that offer FX rebates from your trades are the safe to use? Does the spread increase to include the rebate and introducing broker’s commission? Any experience before and after joining a company that pays rebates?

Is any rebate companies also offering legal advice on disputes?
Can the paybacks be in Euros or other currencies?

Thanks
NC
« Last Edit: January 24, 2012, 09:46:57 AM by nc! »
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Offline muzzamcc

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Re: FX order rebates. Any risks in the spreads?
« Reply #1 on: January 25, 2012, 01:38:55 PM »
The ethical ones are fine to use, and they will NOT increase your spreads. Aslan group are a good one, go to their section of this site (link at top of page) to read about them. You wont have problems with them

Offline TrevDawg

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Re: FX order rebates. Any risks in the spreads?
« Reply #2 on: January 26, 2012, 05:38:20 AM »
I have been using CashBackForex with my broker Trading-Point.  And have had nothing but a good experience.  It doesn't change the spreads at all.  And what's better, if you can find an advertised rebate somewhere on the Internet (search for "Forex Rebates" on Google), then send that page to CashBackForex and they will beat the rate.

On their website they list the rebate for Trading-Point as being .5 pips per round lot traded.  I was able to find a website that offered .7 pips.  I sent that to CashBackForex and they are now rebating me .71 pips.   8)

I get payment about the 20th of every month for rebates in the month prior.  If you trade significant amount of lots, it really does add up bigtime.

Offline nc!

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Re: FX order rebates. Any risks in the spreads?
« Reply #3 on: January 26, 2012, 02:23:42 PM »
Thanks for the answer. Can not find one that pays in Euro.

NC
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Offline TrevDawg

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Re: FX order rebates. Any risks in the spreads?
« Reply #4 on: January 26, 2012, 10:03:25 PM »
My spread for E/U during London/U.S. averages around 1.8 - 2.0 pips.  Sometimes I'll get in with 1.3 - 1.5 pips.  G/U seems to usually be about .4 pips higher.  Those are the only two pairs I trade and usually only during that session.

It's not so bad.  It's not an ECN broker either so I don't pay commissions.  So with the .71 pip rebate, it's working great for me for the time being.

Trading Point's IB page is here: http://www.pipaffiliates.com/

Looks like CashBackForex gets a 50% rev share from my trades.

Spreads are the same regardless if I have them as an IB or not.

If they pay you back 0.71 pip how much did the broker pay to them and how big is your spread?

I would prefer paying less spread and get less (or even don't get) rebate.

Even zulutrade signal prviders don't get 0.7 pip spread commsion from the broker but only 0.5.

If you compare this with ECN brokers' commision which is usualy 7-8$ per lot you must pay much more on the spread at those brokers are giving back 0.7 rebate and both the broker and IB get their own money as well.


Offline TrevDawg

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Re: FX order rebates. Any risks in the spreads?
« Reply #5 on: January 26, 2012, 10:04:58 PM »
I get paid through Paypal with CashBackForex.  Can you not use that?  Paypal will do the currency conversion automatically for you.  There is a fee with that, of course.  But I'm sure that would work for you.

Thanks for the answer. Can not find one that pays in Euro.

NC

Offline nc!

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Re: FX order rebates. Any risks in the spreads?
« Reply #6 on: January 29, 2012, 08:09:53 PM »
To get a complete picture and opinions there is very good discussion at Synaergy FX thread: http://www.donnaforex.com/forum/index.php?topic=4732.msg153609#msg153609

The only way to know for sure is only if one has two accounts with rebate and with out to see if spreads are different on same broker.
Has anyone done the above test?

 I am very sceptical of the whole issue and I choose not to have rebates. It is very easy with software to route orders with rebates to different liquidity provider and add pips on the fly. Prioritized queues and your order get a lower priority.  Just thinking worst case scenario.
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Offline nzsolt85

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Re: FX order rebates. Any risks in the spreads?
« Reply #7 on: January 30, 2012, 09:28:17 AM »
To get a complete picture and opinions there is very good discussion at Synaergy FX thread: http://www.donnaforex.com/forum/index.php?topic=4732.msg153609#msg153609

The only way to know for sure is only if one has two accounts with rebate and with out to see if spreads are different on same broker.
Has anyone done the above test?

 I am very sceptical of the whole issue and I choose not to have rebates. It is very easy with software to route orders with rebates to different liquidity provider and add pips on the fly. Prioritized queues and your order get a lower priority.  Just thinking worst case scenario.


always we gona have 2kind of oppinions... positive/negative about the rebate systems.

But there are a lot of cases, when the traders are blaming the Market/the broker, for unfair conditions, ie. spread widening, conn.freezes, bla bla. but my oppinion its, that its indiffrent, if we blame the Market conditions we not gona change the final results...

For a high frequency trader, the rebate can have a nice influence for the whole equity curve. I did tested this on a broker.<im not gona mention the name> The broker was offering ECN and Standard account as well. On both of the cases.. after a month trading when the cash came in, the acc. was boosted.

My personal test results was been showing, that for swing trade, where we have higher tp/sl.. the ECN account with the rebates had better results.<spread/comission diffr> but on the another test, where i was comparing for the scalps the ECN and the Standard account, there was no question about the decision... bic of the high frequency of the trades, on the ecn. i was paying a lot of comission, so the equity curve was diffrent. Plus when the rebates arrived. then it was a pos. ch. for my both of the account.

Nobody likes a loosing trade, when specialy the trade hits the sl maybe bic. the vol. its low. and the ecn. acc. has vider spreads. but for a while, the SUM of the trades its important, and if we can add to it, then it has a positive output. BTW. everybody needs to find the best suit.broker/conditions, for the requirements, then this small 0.5-0.7 spread widenings are not gona have a big influence, but the trading volumen based rebate its gona have a major pos.effect on the account.<<specialy if you are using ie. EA.s and from the rebates you are paying the VPS, and the new test ea's as well>>>

Gl with the trades! 8)


Offline fxvipservice

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Re: FX order rebates. Any risks in the spreads?
« Reply #8 on: January 30, 2012, 06:36:49 PM »
For the serious trader rebates are a must.  There are some IB's that can markup the spread in order to issue you a rebate.  Other IB's are willingly to split what they are getting for commissions with you resulting in no spread increase. 
http://fxvipservice.com/

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Offline donnaforex

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Re: FX order rebates. Any risks in the spreads?
« Reply #9 on: January 30, 2012, 07:06:35 PM »
Just to add a few notes here for our resident IB's on the forum, The Aslan Group

- i believe they pay out, via paypal, in the currency that you trade in. I have GBP accounts and they pay me in GBP. Confirm with them though to be sure ( theaslangroup@gmail.com )

- Both myself and Aslan Group have a policy of never marketing rebates for any brokerage, ever, if it involves a spread markup. There is simply no point, it's like me saying "pay me $5 and i'll give you $3 back" - what a dumb deal ;). Many IB's DO markup their accounts though in order to be competitive - we are able to be competitive due to volume instead (more clients we get the better deal we can get for everyone, not always, but sometimes). There have been cases where brokers have been sneaky and tried to add in markups by stealth but it is something we watch out for carefully and if a broker is caught doing this they will get removed faster than you can say "spread markup".

I know there is some debate about whether IB customers are treated differently. With the brokers we work with it hasn't been my experience at all, but you can see why a broker might be tempted to treat their direct clients differently to IB ones, after all they will be making much more money out of you. This normally manifests itself more in the brokers attitude to dealing with their IB's than their dealing with customers though. There are other benefits that come with using (some) IB's, such as extras, bonuses (aslan ran a competition for instance in january), personal service and someone to listen and help you out if you have a problem with the broker (problem with withdrawal, we can negotiate and deal on your behalf when there are issues). The extra cash also really helps with funding robot purchases or increasing your gains ;).
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Offline peleus

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Re: FX order rebates. Any risks in the spreads?
« Reply #10 on: November 23, 2014, 01:47:05 AM »
Sorry to bump this up but recently, which providers are actually offering rebates? I was looking for good ones.

Online HFT Group

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Re: FX order rebates. Any risks in the spreads?
« Reply #11 on: November 23, 2014, 06:21:42 AM »
Sorry to bump this up but recently, which providers are actually offering rebates? I was looking for good ones.

The easiest way to find a good rebate provider is to simply Google the name of the broker you wish to trade with and add the word 'rebate' after the brokers' name (eg. 'Global Prime rebate'). This will bring up a list of rebate providers who offer deals with the broker of your choice. As mentioned in previous posts......be aware that some rebate providers arrange inflated spreads or commission rates to enable the paying of inflated rebates. Reputable rebate providers neither encourage, participate in or promote these deals in my personal opinion.

Offline Kristofer

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Re: FX order rebates. Any risks in the spreads?
« Reply #12 on: December 20, 2015, 09:47:48 PM »
If you are interested in discounts on spreads, you will definitely be interested in the  Freshforex offer. Their  Fresh Rebate 50% returns you up 50 percent of spread, or to be more precise, up to $10 per lot by cash with regular payout. This is the best offer in the Forex market, no else broker does  return such amounts

Offline Ganza

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Re: FX order rebates. Any risks in the spreads?
« Reply #13 on: January 06, 2016, 01:51:27 PM »
Quote from: nc! link=msg=154178 date=1327338375

Hi there,

Companies that offer FX rebates from your trades are the safe to use? Does the spread increase to include the rebate and introducing brokers commission? Any experience before and after joining a company that pays rebates?

Is any rebate companies also offering legal advice on disputes?
Can the paybacks be in Euros or other currencies?

Thanks
NC


it is safe
i trade with Tickmill trough cashbackforex and never experience spreads markups
rebates is a profit sharing from brokers to their IBs because introducing a client .

so if a broker charge raw spreads with $4 commisions for 1 round turn for example, the brokers will share the commisions with IBs , and depend of the IBs, they will share IB commisions with their clients
or if a brokers have 1.2 pips , brokers share their profit from spreads with IBs

and this is , it think a win-win solutions
so that is why i always looking for an IBs if i wanna trade with a brokers, because i dont like idea we pay our spreads full  to our brokers and get nothing in return. however, rebate must not consider as trading strategy

 

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