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Get an edge on your forex trading

Lets start with the obvious – ensure you do proper research into your trade, practice using a demo account, ensure correct risk management (stop losses) and as importantly, ensure that you are trading with a reputable broker who wil treat you with the respect you deserve and wont fool around with you when it comes to execution or even worse, withdrawals!

These are well known. However I wanted to introduce a relatively new concept to this business – the world of pip rebates for Forex and CFD trades.

As an industry this is still in its infancy, but its growing all the time. There are a few companies out there that provide a pip rebate services. By this I mean that if you register with them, then open an account with one of their chosen brokers, they will pay you a trade by trade cash, or “pip” rebate on every trade you make. These payments are made to you on a monthly or quarterly basis.

Sounds too good to be true? For once it isn’t. Heres how it works:

The pip rebate company, has negotiated with various brokers a referral, or introducers fee for every client they bring to that broker. Some referrers take a one off payment for every client they open – this is how many broker comparison sites make their money. However, these pip rebate firms instead receive a revenue share of your spread. For example, if you are paying 3 pips spread on Euro, they may receive an introducing fee of 0.5 pips. Whilst most introducing brokers hold on to this share of the spread for themselves, pip rebate firms will rebate back a portion of that direct to you.

So for example, if you were to trade 100 lots per month, and the rebate rate was 0.25 pips, you would get an additional $250 per month. Thats a potentially massive increase in your revenue. One study suggested that for a regular traders it would increase your revenue by 5% a month. Put it another way, you are 5% up before you even have started trading!

A client opens their account in the normal way, normally via a link on the pip rebate site taking them to their chosen broker, at which point the client follows the usual interaction with the broker. The pip rebate firm does not obtain any personal or private information, the only info it gets from the broker is confirmation you have opened, your account number and your monthly trade volume. It needs this to rebate you back!

Pipthepip.com has positioned itself as one of the leading Forex and pip rebate providers providing a real added value service to Forex and CFD traders globally.

The company has a wide reach of contacts within the Forex and CFD market and as such is able to command the best deals from a far wider range of CFD & Forex rebate brokers than its competitors. New brokers are being uploaded all the time, and it welcomes suggestions from its clients as to additional brokers it should add.

As well as a guarantee to match any existing rate, it is launching trading games and prizes for all its members to participate in, meaning that not only do you reduce your trading costs, thereby increasing profit (or reducing losses!), you also have the chance of additional cash prizes on a monthly basis!

Take a look and be sure to post any comments about their services or that of others – watch this space!

I suggest you check out my other guide on easy Make Money OnLine

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