- Signup to receive forex rebates
- Link your trading account
- Earn cash back on every trade
A forex broker primarily generates revenue by adding a cost to every transaction. This typically comes in 2 forms:
- A commission charged by the broker on every transaction, or;
- An addition to the ‘spread’ – the difference between the buy and sell prices of a given financial instrument. For example, a trader who buys the EURUSD at 1.0005 and can only sell it back to the broker at 1.0004 pips has effectively paid 1 pip to enter the trade.
Of course not all of this is profit to the broker, as the broker has their own costs including offsetting risk if they are counterparty to the trade. They also have marketing costs, including paying introducing brokers (or ‘IB’ – the industry standard term for a marketing or referring agency). If the IB offers forex rebates, the IB then pays much of this commission back to their clients.
How forex rebate programs work
When you link a new or existing forex trading account to us the broker pays us part of their spread or commission profit for every trade you make as compensation for referring a customer to them. We then share the majority of our revenue with you, paying you a cash rebate for each trade you make as thank you for signing up with us.
Unlike some of our competitors your spreads will never increase as a result of using our service! The only difference is: as our client you earn extra cash per trade, making trading through us more profitable than opening direct with the broker. Founded in 2008, we are the original and leading provider of forex rebates. Over 100,000 accounts earn rebates through our service and traders love our helpful 24 hour live chat, telephone and email support.
Watch the video below for a brief explanation about how forex rebates work.
Forex rebate calculator:
Are forex rebates a scam; will my spreads increase?
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.
How are forex rebates paid?
The rebate payment methods vary among forex rebate providers. 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.
Are there any other benefits to working with a forex rebate provider?
It depends on the 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. 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 can it be better to work through a ‘middle-man’ that just working directly with the broker?
A forex rebate is similar in nature to a credit card rewards program. Let’s take a Visa credit card for example. When a consumer purchases something using a credit card the vendor incurs a fee of between 1.5% – 3% which they pay to Visa. Many consumers are enrolled in a credit card rewards program and receive approximately 1% cashback reward on any credit card purchase they make. Is it free money? Yes and no. It’s money the consumer would not have received if they were not signed up with the rewards program, however it’s paid for out of fees charged to the vendor who will naturally build such fees into the cost of their products.
A forex rebate provider typically has a contractual relationship with a number of different forex brokers and earns a commission for each trade placed by a trader they refer to the forex broker. The marketing benefits afforded to forex brokers by such a system are substantial, from actual referred clients to branding, added search engine visibility, etc. The rebate provider then pays the client a cash rebate from the commission they earn from the forex broker.
What is the best forex rebate program?
The first forex rebate providers 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. We have continued to improve our services along the way to stay ahead of the pack.
Do you have access to my account?
A rebate provider does not have the ability to perform any trading functions such as placing a trading, moving a stop loss etc. Typically a rebate provider will have access to limited details such as your name, account number, and depending on the broker, trade history.