Does rebates in Forex make sense?
- There are many companies offering Forex rebates. I want to know if it really makes any sense running after rebates, as there are lot of Forex brokers offering low spreads.
- Rebates range in between 0.5 - 0.8 per lot. In this case the spreads are already at around 1.5 to 3 range.
- So after paying $15-$30 per lot while trading and closing the transaction you get rebates between $5 - $8 per lot. Here your risk is $15-30 and return is $5-$8. The risk factor could be more depending on the volatility in market if your position is against the market force.
- I would rather want to find a good broker with low spread then 1st invest in taking a risk of $15-45 per trade.
- As long as i get a broker who is offering a price of $10-12 per 1 full size lot for major currency like EUROUSD , GBPUSD, USDJPY, i would avoid to seek for rebates, suggest if what i am seeking for makes sense
Published on July 14, 2010 under
Forex.
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