Many Forex broker companies offer plenty of bonuses. Besides the standard welcome, deposit and no deposit bonuses, other bonus types have become a regular feature of trading accounts. One of them is the rebate or pip rebate bonus. This bonus is actually a kind of cash-back bonus which never leaves traders empty-handed, even when they lose. The offers are numerous, and traders have a variety of choice indeed. Many broker companies want traders to trade as much as possible, and bonuses like this one, spur trading efficiently. Rebate bonuses are aimed at beginners, experienced, and professional traders alike. No group or level of traders is excluded from this attractive offer.
How does the Rebate Bonus Work?
As a cash-back bonus, it involves returning of a specified percentage of the money invested. Traders, hereby, get a part of their investment back, regardless of the trading outcome. The rebate bonus is also known as rebate pips. All traders have to do is registering with an official account via a special joining link provided by the broker, and apply for the rebate bonus. Also, they can look for the rebate pips in the bonus section of the broker’s website. Brokers may offer a 25%, 50%, 100% or even a 200% cash-back on your trading. Besides the percentage scheme, some brokers offer a specified fixed amount of money. The rule of a thumb is to trade more, in order to get more. This means that the rebate bonus will heavily depend on your trading activity and investments you make. Some brokers, for example, offer a certain amount (like $2 or $5) for every lot you trade.
General Rebate Bonus Types
There are two standard types of rebate bonuses:
- Forex rebates for trades
- Forex rebates for losses
Forex rebates for trades are trade-based and depend on your trading activity. For example, if a broker offers a certain percentage for every trade you make, you will be given back that percentage after every trade. If it is 30%, and you invest $100, you’ll get $30 back. Forex rebates for losses are compensations for traders with losing trades. For example, a trader invests $50 with a loss return bonus of 20%. If they lose, the $50 is not entirely gone, given that $10 will be refunded to the trader according to the 20% rebate rule. Both, trades and losses, can be covered under the same rebate bonus. For example, some brokers might offer $5 per trading lot for successful trades and $10 per trading lot for failed trades. These rebate bonuses really boost traders’ profits and encourage them to keep trading.
Terms and Conditions
Rebate bonuses can be very profitable, especially in the long run, but traders have to fulfill certain conditions to qualify for the rebate bonus. For example, a majority of the brokers will require a deposit for the application which can vary from $10 to $1,000. Other criteria refer to trading a specified amount of trades (20, 30, 40 times, etc.) or trading volume/lots (10, 20, etc. trading lots). Nevertheless, these are just general guidelines. Each broker has its individual terms and conditions which specify what exactly is to be done to get the rebate bonus. Sometimes the terms and conditions do not reflect the reality and practice. Some brokers will make it look like the easiest thing in the world, portraying their bonus as available immediately. This is not always true. Some brokers just try to trap you into depositing more money. They reveal their real agenda at the end when they get to tell you that the bonus money is still not available to you because you did not fulfill the criteria, whereby you did not get any information on these criteria or any rules before the trade. Good brokers have a clearly specified and detailed rebate bonus policy, explaining every step of the way. Even if a broker is cheeky with the requirements, at least, you will know in advance, and you can decide not to apply for that rebate bonus. The bonus policy is usually ambiguous and represents a great challenge for traders who sometimes realize that the bonuses are not worth the effort and that they could lose more money in trying to qualify for the bonus. Still, this is not true for all brokers, and many make an effort to provide the ideal conditions.
Good Rebate Bonus Brokers
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What does the Broker Get?
Brokers have a clear goal when they offer bonuses to traders. Now, we are talking about professional broker companies who have no interest in scamming people and who have a decent bonus policy. Their goal is to keep as many traders as possible, as well as making them trade more often. Traders definitely trade more frequently during promotion periods trying to make use of the extra cash offered by brokers. Experienced traders are huge fans of the rebate bonuses, given that they know how to make money out of the rebates until they come to the point that they regained all of their money and trade with the bonus money only. The more you invest, the more you get back is the motto. Brokers actually cannot lose money on issuing bonuses, since their profits are generated through trading activity, and their profits increase when trading activity intensifies. This lets us suggest that broker companies gain extra cash too, during promotion time. In the end, it is a win-win situation, if fair conditions are provided. Brokers also want to keep their clients as long as possible, and the rebate bonus shows appreciation for customers in a way. Through these bonuses, brokers reward loyal and active traders and give something back to show their gratefulness.
Other Forex Brokers Bonuses
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Rebate Forex bonuses count to some of the most attractive services a broker can offer. Many traders rely on these bonuses to save money, or at least, to save more money for future trading activities. In general, these bonuses contribute to the reputation of brokers and the overall market. Still, traders have to be aware that brokers have to protect themselves from malpractice and abuse of account users or traders, and that is reason number 1 why they have to employ strict bonus policies and conditions. On the other hand, traders should not sign up for unrealistic bonus terms and conditions. In that sense, brokers should be honest and fair to traders by revealing accurate information on the bonus payout. Many brokers seem to have done it right, regarding clients’ feedbacks suggesting that rebate bonuses are a great thing and that they are being regularly refunded.