How do forex rebates work?
What are forex rebates?
Forex rebates are discounts or cash payments made to a forex trader for every trade they place, whether it’s a win or a loss. A forex rebate program reduces the cost of the transaction and puts some money back in a trader’s account every month that would otherwise be lost to the cost of the transaction.
Forex rebates are paid based on lot size traded, in the following ways:
- Monthly cash back – Payments are credited and sent automatically by the 12 of the month following the month rebates are earned in.
- Spread or commission reduction – The trader actually receives reduced commissions and/or spreads on their trading account.
- Paid direct to brokerage account – Cashback is credited directly to the trader’s brokerage account, typically between 1-7 days after the trade is closed.
Calculate your cashback
Are forex rebates a scam?
Rebates paid by legitimate rebate providers are not a scam, however scams do exist. The most common scam is a rebate provider that marks up the spread or commission in order to pay a higher rebate than competitors. Many brokers do allow a referring party, or rebate provider, to markup costs to traders they refer. Obviously this defeats the purpose of the service provided by the rebate provider and thus jeopardizes the viability of the rebate provider’s reputation and business, so a reliable provider wouldn’t consider this. Besides this, certain rebate providers may not pay on time, or not at all. This is why it’s important to choose a reliable provider.
In once case since we first began offering rebates in 2007 a broker was found to be marking up pricing on their own to gain a higher profit for themselves. This is very easy to catch since clients quickly report the pricing difference. The agreement with that broker was terminated indefinitely.
When working with a trustworthy rebate provider, there is no ‘catch’. It is more beneficial to a trader’s financial position to work with a rebate provider than solely with the forex broker.
What is the best forex rebate program?
The first forex rebate programs were Chinese and catered to Chinese clients. In 2006 the company ‘FX Rebates’ arrived on the scene out of the USA, offering forex rebates to a global clientele. In 2007 cashbackforex.com became the second global rebate provider and surged in popularity. ‘FX Rebates’ shortly thereafter either went out of business or stopped offering forex rebates. From 2007 onwards cashbackforex.com and it’s affiliates have been the dominant and largest rebate provider and one of the largest introducing brokers globally.
Many competitors have come online since 2007, some good and some bad. Cashbackforex.com has continued to improve along the way to stay ahead of the pack.
Are there any other benefits to working with a forex rebate provider?
Due to our unique relationship with many brokers, we have often mediated between brokers and clients in order to help successfully resolve client issues, including clients who are having withdrawal issues. Brokers are often very fast to respond to us, since we typically have many clients with them and deal with their support team's on a daily basis. Our knowledgeable support team is available 24 hours per day in 8 native languages & 23 total languages for any questions. We also offer trading tools, calculators, reviews and a robust forex education section.
How are forex rebates paid?
Because we deal with so many traders in so many different countries and serve 23 languages we have to cover a wide array of options. Here’s what we offer:
Forex rebate options:
|Monthly cash back||Payments are credited and sent automatically by the 12 of the month following the month rebates are earned in.|
|Spread or commission reduction||The trader actually receives reduced commissions and/or spreads. This is an exciting option offered by some of our top brokers including IC Markets and Global Prime.|
|Paid direct to brokerage account||Cashback is credited directly to the trader’s brokerage account, typically between 1-7 days after the trade is closed. This is another exciting options offered by some of our top brokers including HF Markets, Instaforex, Pepperstone, and XM.|
In the case of the ‘Monthly cash back’ rebate option, monthly payments can be paid via bank wire, Paypal, Skrill, Sticpay, Entropay, China Unionpay, and Neteller. Some payment methods such as bank wire carries fees and often traders set a custom minimum payment amount in order to accumulate rebates and withdraw their rebates less often than monthly.