What are Forex Rebates? How can IBs profit from them?

What are Forex Rebates？

In the trading world, Forex rebatesare a popular means of sharing commissions between brokers and traders. Simply put, rebates are credits or cashback that brokerage firms offer merchants and customers as a reward for completing an exchange. You may receive a flat-rate rebate, deducted automatically from the purchase price, or a conditional rebate that is only applicable under certain conditions, like a “Buy One, Get One Free” offer. 

Business providers offer rebates for a variety of reasons. They are excellent marketing tools that are capable of attracting customers who are looking for a cashback on their purchase. Likewise, Forex rebates offer traders an excellent opportunity to earn extra cash when they make a trade, no matter how profitable or unsuccessful their positions may be.

How can IBs profit from Forex Rebates？

It is a win-win situation for brokerage firms and introducing brokers (IBs) to establish partnerships. A brokerage firm gains customers who open accounts and trade on their platform. Meanwhile, an introducing broker earns a commission each time the customer executes a trade. 

Introducing brokers (IBs) make rebates only when their clients trade, which means the more customers an IB has and the more transactions their clients make, the more profit the IB makes. 

IBs can be made up of individuals, groups, or registered organizations. Their main objective is to build a client base of traders. As a result, IBs make money from the commissions they receive from brokerage firms depending on how many transactions those traders perform.

How crucial is it for IBs to partner with qualified brokers？

Partnering with the right Forex broker has a significant impact on IBs profitability and success. 

If the IB does not partner with a reputable Forex broker, it will likely lose its profitability, customer base, and perhaps most importantly, its reputation. In the world of reviews, social connectedness and the pace of the online financial market, reputation is everything! 

For IBs to achieve higher commissions, customized solutions, and sustainable growth, they need to determine the credibility and trustworthiness of online brokers beforehand. However, it isnt as straightforward as it sounds, so we have created a checklist IBs can use as a filter when selecting a Forex broker to partner with. 

Who can become an Introducing Broker (IB)？

Anyone with an extensive background in finance as well as the ability to convince traders to trust your abilities can become an introducing broker. Relevant professional qualifications may also be helpful. In the forex world, having a strong online presence is also advantageous, for example, a popular website or YouTube channel. Yes, you should be well on your way if you can build a public profile as a financial advisor or commentator. 

Your trading credentials will increase your chances of becoming an introducing broker. Having excellent people skills, some patience, and the ability to negotiate will make you a successful introducing broker. Having a core of good clients will allow you to reach more people through word-of-mouth. Online reviews and personal recommendations are excellent methods of finding clients for introducing brokers. You can also run your own blog, website, and social media campaigns to attract more clients.  

 It is definitely possible to earn profits as an introducing broker, but you must work smartly to do so. Before settling on a trading platform, its always a good idea to test it out yourself first. Good luck with your new venture as an Introducing Broker!

Increase Your Income as an Introducing Broker with AximTrade

AximTrade is a globally acclaimed Forex broker devoted to providing clients and partners with excellent services and profitability. AximTrades unparalleled competitive edge, commitment to quality standards, and unparalleled professionalism have exceeded the expectations of over 300,000 clients and partners.  

AximTrade‘s innovative approach in developing the trading mindset was recognized with Four Regional Awards at the Global Forex Awards 2021, including The World’s Best Forex Newcomer of the Year, The World‘s Best Forex IB Programme Africa, The World’s Best Forex IB Programme Asia, and The Worlds Best Forex Trading Platform Asia. 

If you have an excellent way of attracting clients and meet all the requirements to become an introducing broker, you have come to the right place. Let us help you earn a good residual income. Contact us for details on how to become a Forex Introducing Broker and start earning commissions when your customers trade using AximTrade.