In this section, we will talk about such a rather popular moment in trading as the return of the Forex spread. It sounds pretty loud and promising, but these are just big words. In fact, making money on the spread is only possible as a broker or partner of a broker. All that is available to an ordinary private trader is the ability to return part of the paid spread.
There are a huge number of spread return services called rebate services. A trader can return part of the spread that he paid to his broker. There are several options. Since there are two main types of accounts, there are two main types of spread return – this is the return of a part of the spread on CLASSIC accounts and the return of a percentage of the commission on ECN accounts. To become a member of the rebate system, you must either register on the site of one of the services that work with your broker or work with a broker that has an internal similar structure. Each broker has its own rules for returning the spread.
There are a lot of these rules, and they are mainly aimed at counteracting fraud schemes. These rules cut off micro-scalping almost completely since almost every broker has a limit on the minimum number of points between the opening and closing prices of a transaction.
In general, this service can be convenient only for those traders who use a medium-term trading strategy, which involves 10-20 transactions per calendar month. They can be popular with scalpers, but due to fairly strict restrictions, not all of their transactions fall under the return. For long-term strategies, these services are also not very popular, because for transactions from 1000 points the size of the spread is practically not important at all. Personally, I used these services only at the beginning of my journey, solely for the purpose of familiarization. Now I practically don’t think about the size of the spread, since I’m practicing a long-term trading strategy with an average profit size of 3-5 thousand points. With this amount of profit, the question is, I will pay 1 point or 10 points of the spread, is not worth it at all.
In conclusion, I want to say that the forex spread is one of the smallest commissions compared to other types of exchanges. The need to take into account the spread in your trading is determined only by the trading strategy. If you make many transactions in a short period of time, it is important for you to consider the spread size, and here it is worth thinking about connecting part of the spread to the return services in order to minimize costs. Well, if you work at large time intervals – do not waste your time looking for the minimum commission, believe me – it is not important there. It is better to spend this time searching for profitable entry points to the market.