FX cashback is a system whereby, if you open an account with an FX broker and trade through a cashback service, you receive a rebate based on your trading volume. Since a portion of the spreads and commissions paid on trades is returned to you, this effectively lowers your trading costs.
[Conclusion] The funds for cashback come from the affiliate commissions that FX brokers pay to referrers. Since these commissions are already factored into the spread, your trading costs remain the same whether you use the service or not. In other words, not using the cashback service is the same as giving up the rebate you’re entitled to receive. Registration and use are free, and cashback accumulates with every trade, regardless of whether you win or lose.
How FX Cashback Works
We have a contract with an FX broker for the cashback service. The flow of funds consists of the following three steps.
① Open an account and start trading
Open a brokerage account (or link an existing account) through a cashback service and trade as usual. Each time you trade, you pay the broker the spread and trading commissions.
② Payment of Advertising Fees (Affiliate Commissions)
Businesses pay advertising fees (affiliate commissions) based on trading volume to cashback services that refer customers.
③ Cash Back
Most of the advertising revenue we receive is returned to traders as cashback.
The key point is that affiliate commissions are “costs that are already factored into the spread.” Since using the service does not widen the spread, there is no additional cost to traders.
Why Can I Get It for Free?
Some people may think, “It’s suspicious to get money for free,” but the explanation is simple. Cashback services return the majority of the affiliate commissions they receive from providers to traders and use the remainder to cover operating expenses. Since there’s no need to charge traders any fees, they can offer free registration, usage, and annual membership.
Please note that some services may add their own markup to the spread in order to make the rebate rate appear higher. REBATE ONE does not apply any markup whatsoever, so you can receive cashback while trading under the same conditions as the broker’s standard account.
Benefits of Using Cashback
Effective transaction costs will decrease
For example, if you pay a spread of 1,000 yen on a 1-lot trade and receive a 500-yen cashback, your net cost is 500 yen. The more trades you make, the more this difference adds up.
You can receive it whether you win or lose
Since cashback is paid based on trading volume, it is unrelated to the profit or loss on a given trade. Even on losing trades, you can recoup part of your losses thanks to the cashback.
Accumulates separately from the account balance
Rebates are accumulated separately from your FX account margin in the "My Page" section of the cashback service. You can manage them separately from your trading funds and request a withdrawal at any time.
Disadvantages and Points to Note
In some cases, this cannot be combined with the provider's bonus.
With many brokers, you can only receive either an account opening bonus or a deposit bonus and cashback—not both. Since bonuses may be more advantageous when your trading volume is low, we recommend comparing options based on your own trading volume.
Some transactions and securities are excluded.
Depending on the broker and account type, certain securities (such as cryptocurrencies) or transactions (such as trades using bonuses) may be excluded from cashback. Please check each broker’s cashback terms and conditions in advance.
Violations of a vendor's trading rules are not eligible for the rebate.
If you engage in transactions prohibited by a broker (such as hedging between multiple brokers), you risk having your account frozen or your profits revoked—even before any cashback is issued. Be sure to comply with each broker’s terms of service.
How to Use (3 Steps)
- Sign up for free—it only takes a few minutes if you have an email address.
- Open an account with a participating provider through the service—even if you already have an account, some providers allow you to link a different one.
- Trade as usual—cashback based on your trading volume will accumulate automatically, and you can request a withdrawal at any time once you meet the requirements.
REBATE ONE supports 16 FX and CFD brokers. Please refer to the list of supported brokers for details on participating brokers and rebate terms.
FAQ
Doesn't using cashback widen the spread?
You won't receive rebates through REBATE ONE. The source of the rebates is the affiliate commissions paid by the brokers, and the trading conditions for your account are the same as if you had opened it directly with the broker.
Can I use this service even if I already have an FX account?
Depending on the provider, you can use this service by either updating the linked account information for your existing account or opening an additional account with the same provider. The steps are explained in each provider’s guide.
Will I be charged a fee if I don't make a deposit or execute a trade?
There are no fees. Registration and use are free, and you won't be charged even if you don't make any transactions for a while.
If a cashback service goes bankrupt, what happens to the cashback?
Since the funds in your FX account are held by the broker, they are not affected. For peace of mind, it’s a good idea to withdraw the rebates accumulated in your account regularly. Three key indicators for identifying a reliable service are: disclosure of operational information, clear terms for rebates, and a proven track record of successful withdrawals.