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09-10-2008, 12:51 PM
Let's see. If we assume 3 pip spread (could easily be more depending on what pairs you trade), then trading 1 standard lot will cost you $30 (on xxxUSD pairs). $1 million is 10 standard lots, so you will have spent $300 (or more) on spread.
I wouldn't call a $30 rebate on $300+ a scam, but I wouldn't consider it to be making money either. It's just a volume discount for heavy trading. In this case, ampconsultants is acting as an IB and is just giving back some of the commission that they receive.
If you find a broker you want to open an account with, you can sometimes save a little money by using an IB that offers rebates. Other times, the spread will be bigger using the IB, so it will cost you more per trade, even after the rebate. As always, read the fine print.
Last edited by Pharaoh : 09-10-2008 at 12:52 PM.
Reason: typo
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