|No rebate||With rebate|
A partner attracts 10 clients. Their collective trading volume is 20 lots (2 lots by each client). The clients do not like the spread very much, so they are hesitant to increase the trading volume and choose inexpensive trading instruments, such as EURUSD.
In this case the partner’s commission would be as follows:
20 lots * $15 = $300
A partner chooses to offer rebate to his/her client and sets the rebate volume at $5 from each lot. The clients’ motivation increases as they get additional funds they can use for trading. Clients use the funds to trade and trade 50 lots.
In this case partner’s commission would be as follows:
50 lots * $15 – 50 lots * $5 = $500
Attract more clients to get more profit.
100 lots * $15 – 100 lots * $5 = $1000
And do not forget about additional bonus for the number of lots!