Forex Deals: Cash Back Forex

Filed under: Learn Forex Trading |

Screen shot 2013-06-03 at 10.46.18There are many deals and cashback schemes to consider when choosing a forex broker, and one that has recently caught my eye is the one at Cashback Forex (www.cashbackforex.com). This is a service that has over 30,000 users, and who offers cashback to clients when they trade from one of their affiliated forex brokers. This works by Forex Cashback earning a commission for any client that they refer to one of their affiliated brokers, and then they offer you, the client a percentage of this commission for signing up with them. This cashback varies from broker to broker, but typically amounts to around $2 per round lot traded. Not a great deal, but if you are a high volume trader, this could come in very handy indeed and could in fact negate the loss made on the spread.

 

This deal is interesting for a number of reasons. If you just want to get a little extra cashback, then that is fine. However, you could also incorporate it into a system. For example, you may have a high volume system that, over the long term, produces around about a breakeven result. However, if you can get just $2 back per trade, and if you say, trade around five trades per day, per forex pair, and trade ten pairs, then that is a system that produces $100 per day, and over $2000 per month. Not bad at all. It is often the case that the spread turns a good system into a mediocre one, and this system can help to redress that balance a little bit. It can turn a breakeven system into a profitable one, and one that is beneficial to all parties concerned. However, you must make sure that your trading system is solid first – otherwise, you could be making some big losses, which the cashback will not cover.

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