Russian forex brokerage TeleTrade said on Wednesday it will alter the terms of its cahsback reward program for active clients with VIP accounts. The changes will be applied from 1 July, 2016, and include a new calculation method for the cashback amount.
Starting July 1, TeleTrade’s VIP clients will receive rebates, or cash back, depending on their VIP status. The amount they are rewarded will be calculated using the spread amount upon a position closing and the execution commission fee. According to the new rules, the maximum amount traders receive cannot exceed $10 per a single lot.
The broker will not restrict trade transactions and partly reimbursement of costs will be performed for all operations.
In addition, the changes envision that rebate bonuses will not be deposited to traders’ accounts in case they have received credit funds from TeleTrade as a deposit bonus during the billing month.
TeleTrade classifies its VIP clients in accordance to the total deposit size of their accounts. There are three categories of VIP clients – VIP status for clients with deposits from $50,000; VIP Gold status for traders with deposits equal to and higher than $100,000; and VIP Platinum status for investors with deposits exceeding $500,000.
The broker did not specify the amount of rebates traders could get. In addition to cash back, the broker also offers a wide range of other services to VIP clients.
Forex brokers often conduct attractive rebate programs to encourage investors to be more active. Earlier this month, offshore forex broker Weltrade launched a rebate program, under which it pays back clients cash for each transaction they make, regardless winning or not. Some websites, such as www.PayBackFX.com, www.CashBackForex.com, ForexCashbackRebate.com, among others, are specialized in providing various forex cashback offers with a wide range of brokers.
The TeleTrade brokerage group offers trading in forex and contracts for difference (CFDs) on commodities, stocks, futures and currencies. It is present in 26 countries worldwide and in 2015 was the third largest retail forex service provider in Russia by trading volume with an average monthly volume of $45 billion, according to a report by Interfax-Center for Economic Analysis (Interfax-CEA).
TeleTrade is one of the three forex brokeragess to hold a license by the the Central Bank of Russia (CBR) and is also registered with the National Bank of the Republic of Belarus (NBRB), which is the equivalent of obtaining authorization. Group companies are also regulated by the Cyprus Securities Exchange Commission (CySEC) and registered with the relevant authorities throughout the EU.