Where the money comes from
Brokers pay partners a share of the spread or commission generated by clients the partner introduces. A cashback programme passes part of that share back to you. The broker earns slightly less per trade, the partner keeps a slice, and you get a rebate on trades you would have made anyway. Nobody is giving away money; the cost of trading is being split differently.
How it is paid
Rebates are quoted per lot, for example $2 per standard lot on EUR/USD, or as a percentage of the spread. They are usually paid daily, weekly or monthly into your trading account or a partner wallet, and they are yours to withdraw. Because the rebate is a fixed amount per lot, it is worth more on tight-spread accounts where it represents a larger share of the cost.
What to check
Cashback is straightforward, but the details decide whether it is worth your time.
- Whether the rebate is paid in cash or as non-withdrawable credit. Cash is the only kind worth counting.
- Whether you must open a new account through the partner link. Existing accounts usually cannot be moved.
- Whether the account type you want is eligible. Raw or ECN accounts sometimes pay a lower rebate than standard accounts.
- Whether there is a minimum payout or a minimum volume before the first payment.
Cashback on FrugalFX
Where a broker or partner offers a cashback programme we list it as a cashback deal on the broker's page, with the rate and the terms. Because these programmes are partner arrangements, following the link matters: the rebate only applies to accounts opened through the programme.
Where to go next
Trading forex, CFDs and other leveraged products involves significant risk. This guide is general information, not investment advice. FrugalFX earns affiliate commissions on some links.