Comments on: Can somebody please explain to me how forex rebates work? http://www.myylt.com/2009/10/30/can-somebody-please-explain-to-me-how-forex-rebates-work/ Discussion of Forex Trading and Currency Trading Wed, 23 May 2012 14:10:55 +0000 http://wordpress.org/?v=2.3.3 By: Caroline http://www.myylt.com/2009/10/30/can-somebody-please-explain-to-me-how-forex-rebates-work/#comment-19319 Caroline Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2009/10/30/can-somebody-please-explain-to-me-how-forex-rebates-work/#comment-19319 It is simple. The brokers make money only when you place orders. They make their money because of the spread (the difference between buy and sell price). So they try to persuade you to get big rebates... they pay you back if you place orders, based on your volume. But you first had to pay them (though you don't see it, it is the hidden cost of the spread). Don't fall for it. To make money on forex, you need to be a smart trader and smaller spreads will make you more money than fake rebates. It is simple. The brokers make money only when you place orders. They make their money because of the spread (the difference between buy and sell price).

So they try to persuade you to get big rebates… they pay you back if you place orders, based on your volume. But you first had to pay them (though you don’t see it, it is the hidden cost of the spread).

Don’t fall for it. To make money on forex, you need to be a smart trader and smaller spreads will make you more money than fake rebates.

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