EARNINGS

HOW ARE REBATES & IB COMMISSIONS GENERATED AND WHERE DO THEY COME FROM?

None of this money comes from 20YP. All money from Rebates and IB Commissions come directly from the broker.

All REBATES and IB COMMISSIONS are generated by Trade Commissions and Spreads, and paid out by the broker.

You can see below that the broker's standard Trade Commission is $2 /lot. So every time you open and close a trade you are charged $2 per lot and that goes to the broker. And any IB (referral) Commissions they pay come out of that (they have a sliding scale of how much clients earn based on different factors).

However, since we're a trading group and bring in a good amount of business to the broker, they allow us to create a program with a custom commission structure. This means they allow us to dictate what the Trade Commissions are on our trades and how many pips (if any) are added to the default spread, as well as how that money is divided up.

We have the Trade Commissions for our Rebate RollOver Program set at $24 /lot. So every time a trade is opened/closed, it is charged $24 /lot in Trade Commissions.

$14 of that goes to the account holder (you) as their Rebate.
$8 goes towards IB Commissions (referral commissions).
The broker also needs to earn something as well, obviously. So we also added a little to the spread on each trade. This provides the broker with $3 /lot per trade as their share.

Below is a breakdown of everything for our previous program just to show you an example of how things are broken down (this is directly from the broker).

When a trade is opened/closed, it is charged $24 in Trade Comms. All we need to do is make about 2.5 pips on the trade (2.5 pips is about $25) and that will cover it. If we don't make 2.5 pips on the trade the $24 comes out of our end (the small amount that 20YP earns).

So no matter what, the account holder (you) earns their Rebates and IB Commissions on each trade (Win or Lose).

Then at the end of each week the broker will pay all those earnings (from all trades made that week) into the account holder's trading account.

EVALUATED FIRST

This is a rather big set up we have here with the size of the Trade Comms and how much each person receives back from their own trades (Rebates). It's unprecedented to say the least. So before the broker agreed to all of this we had to trade an evaluation account for a few weeks just to show them that we do indeed know what we're doing and can actually trade successfully.

Because this is something a lot of people / groups will try to do. Set up something like this with huge referral commissions and everything, just so they can spend a month or more pumping out trades just for the sake of racking up their own IB Commissions (or to entice others to sign up just to refer others on a huge scale), with total disregard to people's actual accounts. They'll run everyone's account dry just to make as much in IB Commissions as they can, while they can.

So we had to prove ourselves first, which we obviously did.

IN FACT.... we did well enough that we were able to talk the broker into contributing their share ($3 /lot) to everyone's REBATES for the first month. That's why for your first month you actually earn $17 /lot in Rebates. The broker is actually giving up their share to our members for the first month.