Rebate is a discount provided to the dealer for the mediation in the sale of the product or to the client in order to encourage loyalty to the brand.
On the Forex market, such discounts are called affiliate programs and allow the trader to get back part of the commission for transactions. The broker, on the basis of trading activity of the client, reimburses a part of the spread (at a fixed value) or pays a reward for the turnover expressed in lots.
Have your cake and eat it too
Scalper strategies are very popular on Forex. They attract users with a high trade frequency, low chance of loss and the ability to make profit every day.
The reverse side of such strategies is a high percentage of unprofitable trades (up to 40%), as well as the costs of paying the commission to the broker, which takes away a big chunk of the profits. Rebate allows you to return almost half the amount of the commission paid (in the period of campaigns and special offers, the reimbursed amount is higher).
The broker returns the funds spent by the client on the commission in the form of bonuses that can be withdrawn later on certain conditions, or immediately transfers funds to the client's account after a calendar period.
The rebate conditions allow you to receive a refund of the commission (spread) from all transactions: both positive and negative. Even after zeroing the deposit, the trader can receive up to 10% of the money spent on trading back. In this case, this amount will be a second chance and relieve the psychological burden, getting them rid of the fear of losing the deposit.
Network games
Brokers are interested in getting new clients. Their attraction requires additional costs, which can be included in the spread and commission. In addition to conventional advertising, network marketing is an effective way to attract customers. «Bring a friend» still works without fail.
A rebate trader can receive refunds not only from their own trading activities, but also by attracting new customers, which gives the trader a percentage of all their trades.
Within a brokerage company, such a service is called an affiliate program - offers can differ both in terms of payments and levels. Multilevel systems allow traders to create an entire partner network and build pyramids, receiving a percentage of trades of attracted clients at all levels.
Such earnings have an indisputable advantage - the only investment of a trader for such a passive income is time.
The successful start of an affiliate network depends on the popularity of the broker brand and the degree of support of the affiliate program on the part of the company. Attracting clients to popular brokerage companies with a positive reputation requires significantly less effort from the partner when they explain to newcomers why they should invest or open an account.
Support of affiliate programs on the part of the company is provided in the form of placing ready-made advertising materials in blogs and on websites. Clicking the affiliate link and the subsequent registration of new traders as clients of the company gives partners the right to receive rebate on their accounts.
The site or blog for posting advertising materials may be of different themes, and it is unlikely that readers or subscribers will be surprised at such banners: in the 21st century, the desire of the site owner to earn by advertising is in most cases perceived by visitors as normal behavior.
The Forex theme can be parallel to the story line of a blog or website, the author can use several techniques to attract the attention of the target audience, for example, opening a CFD portfolio is the cheapest and easiest way.
The broker will tell you how to properly select the shares, so that the beginner's profit on them would attract the public interest and serve as a good advertising move. The funds received from the rebate program through the affiliate link and registration of visitors, will be an additional earnings for the owner of a blog or site, which naturally was created for a specific purpose and generates a permanent income.
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