| Brokerage Firm | EUR/USD Spread | Pip Rebates |
 | 0-1 Pips | 40%* |
 | 0.5 Pips | 0.75 Pips |
 | 1 Pips | 0.75 Pips |
 | 2 Pips | 0.55 Pips |
 | 2 Pips | 0.7 Pips |
 | 2 Pips | 0.5 Pips |
 | 2 Pips | 0.5 Pips |
 | 2 Pips | 0.4 Pips |
 | 2 Pips | 0.3 Pips |
 | 2 Pips | 0.7 Pips |
 | 2 Pips | 0.4 Pips |
 | 2 Pips | 0.5 Pips |
 | 2-3 Pips | 0.6 Pips |
 | 2-3 Pips | 0.6 Pips |
 | 3 Pips | 0.75 Pips |
 | 3 Pips | 0.8 Pips* |
 | 3 Pips | 0.25 Pips |
 | 3 Pips | 0.5 Pips |
 | Varies *see website | 0.7 Pips |
Pip Rebates and Spreads. What to look out for.
As with most investible assets, when you trade in the financial markets, be they the Forex, CFD, futures, stock or treasury markets you pay a spread on that trade.
A spread is the difference between the bid (sell) or ask (buy) price. For example, if the spread on GBP/USD is 1.6589/92, it is three pips wide. In most cases that spread of three pips represents the brokers income. Different Forex and CFD brokers offer different spreads on the products they allow to trade and the size of this spread is often a key factor in determining which Forex of CFD broker to use.
PipthePip receives a share of those rebates direct from the broker and we share those pip rebates with you, the client. Therefore we at pipthepip.com believe it is very important for you to be able to identify the impact of pip rebates on your choice of Forex or CFD broker. You may opt immediately for the broker that provides the highest rebate to you. However, there are many other factors that you should consider and we identify a few below.
Remember, we are here to provide you with information and support throughout your trading life cycle, so if you have any questions or queries regarding a specific broker on our site, get in touch with us and we will be happy to help.
1. Regulation.
You need to consider the integrity of the company you are investing your money with. Most traders opt for brokers that have regulatory status in strong regulatory jurisdictions such as the UK (FSA) or the USA (NFA, CFTC), however do consider other regulatory jurisdictions – just do your research.
2. Product range.
If you already have a trading style that you are happy with, you will know with products suit you best. If you only ever stick to trading a few Forex pairs, then you are able to focus your broker search to those. However, others many want to branch out or diversify trading styles throughout different asset classes. If you fall into this category, look for brokers that offer Forex and CFDs or Futures – these days you are able to get access to commodity, treasury, index and others CFDS via many brokers.
3. Trading platforms.
Brokers have responded to the demands of their clients and have opened up various new trading mechanisms for their clients. Many offer off the shelf platforms such as MT4, a very popular choice for traders, or their own in house platform, catering for their clients needs. Platforms such as MT4 require software downloaded onto your PC. If you are always on the move you may prefer a broker who offers a browser based platform, which requires no download. Various brokers now even offer phone trading, and I Phone and similar apps are growing in popularity.
4. Fixed or Variable spreads.
Brokers these days are split in their provision of fixed or variable spreads. Fixed spreads, offer stability, variable spreads increase and reduce according to market depth, or liquidity. To compensate for this variable rate, the spreads of variable rate brokers, especially on Forex are often tighter during major market trading hours. However spreads may widen significant in times of low liquidity or around data releases. Pip rebates are earnt in either case.
5. Service and support.
Forex and CFD brokers vary significantly in the depth and aspects of services they offer to their trading clients. There will often be tiers of service depending on the size of your trading account, or related to trading volumes. Some may offer a personal account managers, others specific trading advice, reports or analysis. Once you have identified what you require, there is likely to be a broker that can meet your (reasonable) needs.
Remember to do your research, and seek advice of others trading with your preferred broker. Either way, when trading with pipthepip, whichever broker you receive, our pip rebates will give you a head start!
