While making deals on Forex a trader pays the spread to a brokerage firm. A spread is the difference between the bid and ask price of an asset. There are several types of spread: fixed spread, fixed spread with extension, floating spread. For different currency pairs there are often different types of spread that can vary depending on the market situation.

Spread is the main source of broker’s income. In fact, a spread is a fee charged for carrying out a transaction. But you can easily regain the part of the spread by using various rebate-services.

Rebate service offers consumers cash back on the purchase price of a good or service. Having performed the settlements, a seller offers a certain discount to the customer. This service is widely used not only on Forex but also in marketing in order to promote sales.

On currency market rebate-projects enable traders to receive a refund from each executed deal. As a rule brokerage firms provide that kind of services not directly but via special services targeting at paying off a spread (but not always). If you want to use this service, you need to register your trading account in the rebate system or open a new brokerage account with the help of a referral link on the rebate-services website.

The interaction between a trader, broker and a rebate service can be described as follows: a broker pays to the company providing rebate services, a fee for acquiring a new client. Rebate service gives the part of this fee to a trader. Thus, we can say that the spread is divided into three parts of certain proportions.

The rebate services are provided for free. Trading conditions and the size of a commission fee remain unchanged. You will simply be partially refunded – monthly or weekly regardless of whether you trades were profitable or not.

The registration in rebate projects is quite simple and does not take much time. The only thing you need is to find an appropriate service and choose a broker, then open a trading account and begin to take a profit for each deal.

The size of a rebate commission depends on the amount of trades and the size of commission fee set by the broker and the service.

Such operations allow traders to reduce losses and get additional profit while making deals on Forex. Whatever your professional experience is, you will be able to use rebate-service and make your trading strategy more effective.

InstaForex cooperates with a number of projects aiming at returning part of the spread – for example, InstaRebate. The participants of the project receive 1.5 pips rebate for each deal, the highest refund rate on the brokerage services market. The rebate payments are accrued automatically on a trading account and the only thing a trader needs is to register in InstaRebate program.

Added by Tatyana Makhina,
InstaForex Clients’ relationship manager