(PRWEB) December 2, 2008
Forex Trading Pal has recently launched its rebate program. On the Forex Trading Pal website you will find rebate offers that cannot be matched by most other introducing brokers and, also very important, Forex Trading Pal only works with some of the most respected dealing firms in the market. This allows traders to work with the best brokers available while keeping their transaction costs low.
Traders can participate in Forex Trading Pal's rebate program free of charge by indicating that Forex Trading Pal referred them when signing up for a live account at a dealing firm. Traders will then receive a rebate on every trade they make. For example, if a certain trade involves a spread (this is in fact the commission paid by the trader) of 2 pip, or 20 Dollar, Forex Trading Pal will pay back up to 0.5 pip, or 5 Dollar, on every trade. These rebates can add up to thousands of Dollars annually and are thus an excellent way for a trader to lower his/her net transaction costs (in this case by 25%).
The foreign exchange (Forex) market is a huge market nowadays and an increasing number of traders from around the world is active in it. While a huge number of institutional traders are into Forex trading, the market also has an important retail segment. Especially this retail segment contains a lot of inexperienced traders who enter the market not well-informed because they don't use introducing brokers.
Major pitfalls for inexperienced traders are for example: not having a clear trading strategy, the inability to oversee the relatively high risks involved with Forex trading and a lack of understanding with regard to transactions costs. The main problem is that inexperienced traders will not always learn to overcome these pitfalls when they go directly to a Forex broker (dealing firm) and start trading. The reason for this is that it is not always in the broker's best interest to educate its clients. For example, some brokers trade against their clients (by holding the opposite position of the client's trade) and benefit from bad performing traders.
Because of the complex nature of the Forex market, any trader new to the market should turn to an introducing broker like Forex Trading Pal for advice. Introducing brokers are companies that research the market, have strong relationships with certain dealing firms and offer free services (like Forex Trading Pal's rebate program) to traders. Introducing brokers are in the best position to match a trader with a certain broker because introducing brokers have insight in both the traders' needs and the brokers' offers. Furthermore, the services of an introducing broker are completely free of charge. This means that a trader benefits from free advice and additional services.
An introducing broker like Forex Trading Pal gets compensated by the brokers to which it refers clients. One could argue that this makes the introducing broker less independent but in fact it is in the introducing broker's best interest to work only with high quality brokers in order to keep its clients satisfied. Furthermore, the fact that the introducing broker gets compensated by the dealing firms is the very reason that it can offer its services (like for example a rebate program) for free.