How do Forex rebates work?

How we provide our service and how Forex rebates work in general are all topics discussed in our Frequently asked questions.
On this page we would like to take a more practical view of how rebates work and what you can expect during the signup process and until you begin receiving cash rebates.

The signup procedure

Signing up for a RebateMyPips account is easy, fast, secure and most importantly FREE!
You are welcome to review both our Privacy policy and terms of use. In order to sign up you need to click the "Register" link, located on the top of each page. You will then be transferred to the signup page, where you will be asked for some basic account information needed in order to allow us to open an account for you. Once you have submitted the registration form, you will be sent a confirmation email. The confirmation email contains an activation link. You will not be able to use your account until you activate it via the link enclosed in the email. After activation you have two basic options: either create a new account with one of our select brokers or activate an existing account with one of our brokers. Both options are done through the activation form on the broker's page. If you are looking to open a new account with one of our brokers, you can refer to the broker comparison table, to help you select the right broker for you.

Once you activate an account you will receive a confirmation email. Once the account has been activated and approved for cash back by both RebateMyPips and the broker, you will receive a final confirmation email. You will begin receiving rebates one month after receiving the second email, although the rebate itself will be accumulated from the time of the initial activation. In order to be able to receive your Forex rebates, it is important to choose a payment method using the form in your user profile page. If you don't choose a payment method, we can't pay you.

Case study

In order to illustrate how our service works we will outline a short case study. We are sure that after reading this case study you will have a much better understanding of how Forex rebates work.

Our case study begins with John. John is new to Forex trading and is taking his first steps in this world through RebateMyPips. He begins by signing up for a free  account using our registration page. After registration and activation he checks out the broker comparison table in order to select an appropriate broker for his needs. After selecting a broker, John continued to the broker's page. After reading the information about the broker John decides that this is in fact the broker he would like to trade with. John clicks the "Open live account" button and follows the instructions on the broker's registration page. Once the account with the broker is created, John goes back to the broker's page on RebateMyPips and activates his account using the activation form. Once the account has been activated John goes to his profile page and sets his preferred payment method. John begins trading with his new broker account and a month later receives a nice payment from RebateMyPips.

How much will John earn?

John is a small trader. He trades in small lots and never invests a lot of money is a specific position. John is trading through a broker which, through RebateMyPips, rebates 1 pip for each round-turn-lot traded.

John opens a position in the EUR/USD currency pair for 500$, which through 1:200 leverage give him 100,000 units (or 1 Lot). The spread (buy sell) for this trade is 3 pips per lot. Since John is trading 1 lot, he will pay 3 pips or for this currency pair, or 30$ of commission, to the broker. Because he signed up with his broker through RebateMyPips he will get 1 pip back (equal to 10$!). For each such position John opens and closes, he will get a 33% rebate on all of his trading commissions.

For example last month john traded on the EUR/USD currency pair a volume of 10 lots (after laverage) and the spread on EUR/USD is 3 pips. RebateMyPips offers a rebate of 1 pip per round turn lot with his chosen broker.

how much John pay to the broker?

10(lots)*100000(=1 lot)*0.0003(3 pips spread)= 300$

How much John will get from RebateMyPips?

10(lots)*100000(=1 lot)*0.0001(1 pips rebate)=100$

After this short case study we hope you understand the process and practice of our rebate system and we are also sure you understand why we say we are "The logical choice for traders".

If you have any further questions, you are welcome to contact us. Once again, thank you for selecting RebateMyPips as your premier trading rebates provider!