ActivTrades Launches Cashback Program for Professional Traders

ActivTrades, a broker specializing in foreign exchange (forex) and contracts-for-difference (CFD) trading, announced the launch of its new “premium” cashback program which is exclusively available for its professional clients this Wednesday.

In order to receive the bonus, clients of the London-based broker need to trade a monthly average of at least €50 million in notional volume. Traders who meet these criteria will receive rebates on spread and Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term, in addition to interest on unused margin.

The rebates will be calculated based on 20 percent of the target spread and 20 percent of the total swaps, the statement said. Furthermore, the broker will pay interest on the average free margin held by an investor during a calendar month.

This is based on the annual rate of 1.25 percent for Euro, 1.50 percent for USD, 1 percent for CHF and 1.10 percent for GBP accounts. These rates, however, are subject to change.

Are Rewards Programs for Institutional Investors the Latest Trend?

Loyalty or rewards programs are not uncommon, specifically within the retail trading space. However, trading incentives do appear to be becoming a trend for professional and institutional clients as well.

It is worth noting that this apparent trend coincides with brokers within the United Kingdom and European Union (EU) starting to put extra emphasis on institutional clients. This is because they are not subject to restrictions, such as Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term caps, implemented by the European Securities and Markets Authority (ESMA) for retail traders.

Commenting on the cashback program, Alex Pusco, the Chief Executive Officer of ActivTrades said: “We are extremely excited about our new Cashback Program. This is a scheme that provides real value and full transparency for high volume traders."

“Clients enrolled in the scheme will find a new widget in the personal area of our website, showing the notional traded value balance and the potential or acquired rewards, in real time.”