Rebate as a way to make extra money in stock trading

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Rebate, aka a partial return of the spread — one of the varieties of affiliate programs, but still very real and attractive for the trader. Only few brokers offer own shares for the partial compensation of the spread and in most cases on a paid basis, which is quite logical (an incentive to spend more transactions, to pay commission).

What is spread, I told earlier — the difference between the purchase and sale of an asset, which is the commission of a broker (dealing center). Spread rebate is a refund to the trader of the spread through a separate rebate service, whose task is to attract as many clients to the broker as possible. If the client has already come to the broker, what is the reason for companies to lose their revenue? On the ignorance of traders and brokers they earn their commission, and those who know about rebate spread, can count on compensation in 20-40%.

How the rebate of the spread works

Rebate service – is the same mediator as the broker that accumulates on your website affiliate links of dealing centers. For the broker it is a source of potential customers, for traders the advantages are the following:

  • rebate of spread occurs regardless of whether the transaction was unprofitable or profitable;

  • for rebate service it is not profitable to offer a client with a bad reputation, because he’s losing for potential clients and other brokers. But the broker is unlikely to “rent” their partners for these services, meaning?

  • you can work with one of the rebate-service, changing brokers;

  • for those who prefer scalping strategy (where tens of trades may occur during the day), the rebate spread is a good financial help;

  • traders can participate not only in the shares held by the company, but by the rebate service as well.

rebate service

In order to receive compensation, you need:

  • make a binary choice: broker and rebate service. They are evaluated on similar criteria: reliability, reviews, duration, repayment terms, etc. If on the website of the service there will not be an affiliate link of your chosen broker,- it is unlucky;

Important: please pay attention to all brokers in the list! If the majority of them will find themselves without licenses for the relevant regulators, it is possible to raise the reliability of the broker into question. Also a trader needs to understand the algorithm of compensation. The more complicated the conditions, the fewer guarantees for reimbursement.

  • register a personal account on the website of a rebate service. It’s simple: phone (for verification), email, name, password. Registration takes 5-7 minutes; It is not possible to click on the link without being registered, link will not work correctly;

  • when navigating through an affiliate link the trader enters in the registration form of the broker, where an affiliate code should be specified. Code must match with the one listed on the website of rebate service!

Important: registration information at the broker and the service must match (email, name and telephone number), it is necessary for further verification and withdrawals.

  • open trading account with a broker fits (links) in the back office of rebate service.

If everything is done correctly, you will receive e-mail message from the service, that trading account of broker N with the number “000” successfully activated in the system.

Already have open account at a broker and just now found out what the rebate spread is? Not a problem. Some services allow you to pull up a live trading account, some ask to open a new additional and associate it with the old one. The main condition — the service of the broker should have a partner agreement.

That’s all the nuances of this service. And all you need to offset part of the cost of stock trading is to find a good service for the rebate spread and register correctly.

Forewarned is forearmed! Profitable trade to you!

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