Top 5 Forex Cashback Programs (High Rebate & Discounts)

The term cashback in forex trading refers to a system where traders receive a portion of their trading costs, such as spreads or commissions, back into their accounts. The cashback is typically a part of the broker’s commission or spread that is returned to the trader, either directly by the broker or through an introducing broker (IB) or affiliate partner, and it’s an incentive that effectively reduces your trading costs.

For instance, when a trader executes a trade and the broker earns a commission or spread, a portion of this earning is rebated back to the trader through the cashback program, enhancing their profitability over time.

See here the best Forex Cashback Programs with high rebates we can offer at WR Trading:

What is a Rebate in Forex Trading?

A rebate in forex trading is a form of cashback where traders receive a refund of a portion of the trading costs incurred. This refund is calculated based on the volume of trades executed, and is typically provided by brokers or third-party services.

For example, suppose a trader executes 100 lots in a month, and the broker offers a rebate of $5 per lot, the trader would then receive a rebate of $500 for that month’s trading activity.

Rebates can be credited daily, weekly, or monthly, depending on the broker’s policy, and they serve as a cost-saving mechanism, which is especially beneficial for high-volume traders.

What’s the Difference Between Cashback and Rebates in Forex?

While both cashback and rebates aim to return a portion of trading costs to the trader, the primary difference lies in their structure and delivery:

• Cashback: Often refers to a fixed amount returned to the trader per trade or lot, usually facilitated through affiliate programs or IBs.
• Rebate: Typically structured as a percentage of the spread or commission, calculated based on trading volume, and may be provided directly by the broker.

In practice, the terms are frequently used interchangeably, and the specific definitions can also vary between brokers.

How to Choose the Best Forex Cashback Program

Selecting the optimal Forex cashback program requires careful consideration of several factors, with the key criteria being:

1. Rebate rates (the amount returned per lot or as a percentage of trading costs).
2. Broker compatibility (availability of the cashback program with your preferred broker).
3. Payment frequency and method (how often and through which channels rebates are paid).

In more detail, higher rebate rates can significantly reduce trading costs (although it’s essential to ensure that high rebates don’t come at the expense of wider spreads or other unfavorable trading conditions).

Broker compatibility implies that you need to ensure that the cashback program is compatible with your chosen broker and account type (some programs may only be available for specific account types or may require new account registrations).

The consideration of payment frequency and method refers to how often rebates are paid (daily, weekly, monthly) and through which methods (direct to trading account, PayPal, bank transfer)－timely and convenient payment methods enhance the benefits of cashback programs.

By partnering with WR Trading, you can access these rebate programs and enhance your trading efficiency, because we’re dedicated to providing you with the best cashback services tailored to your trading needs.

See the full comparison of our Forex Cashback Programs in this video:

Broker:	Rebate Cashback Offer:	How It Works:
XM	50% Rebates	Rebates are automatically paid into your account or wallet. We offer you 50% of the rebates of the maximum VIP level of XM, which can be up to $40 per 1 lot trade.
RoboForex	50% Rebates	Rebates are automatically paid into your trading account. We set up the rebates to a 50% share, which means you can receive up to 42.5% of the broker’s revenue back.
FBS	30% Rebates	Rebates are automatically paid into your trading account. 30% is the maximum rebate rate you can get from us. That means around $1 – 35$ cashback per 1 lot trade.
FP Markets	No direct rebates; however, a discount of $0.75 per lot traded on RAW accounts (equivalent to $1.50 round-turn).	No rebates and cashback is available, but we offer you a discount of $0.75 per 1 lot trade in the RAW account, which is a similar function to rebate/cashback.
Exness	50% Rebates	Rebates need to be manually activated. Please contact @wr_trading on Telegram or message rebates@wrtrading.com. We can offer 50% of rebates, which means around 20% of the broker’s fees as cashback into your trading account.

Where Can You Get Cashback in Forex Trading?

Cashback in forex trading can be obtained through:

• Forex brokers: Some brokers offer direct rebate programs to their clients.
• Introducing Brokers (IBs) Programs and FX Affiliate Programs: Third-party services like WR Trading provide cashback programs by partnering with brokers from their Forex IB Programs.
• WR Trading Cashback Program: WR Trading offers a comprehensive cashback program by partnering with different Forex Brokers, where you can receive rebates based on your trading volume.

How High Can the Rebates in Forex Trading Be?

Forex rebates can vary widely depending on the broker, account type, and trading volume, but rebates typically range from $0.50 to $5.00 per standard lot traded.  Some programs, however, offer higher rebates under specific conditions, but a “standard range” would be rebates between $1.50 and $3.00 per lot. Certain brokers or rebate programs provide high-end offers of up to $15 per lot, especially for high-volume traders or through special promotions. 

As an example calculation, if you trade 100 standard lots in a month with a rebate of $3.00 per lot, your total rebate would be:

100 lots x $3.00 = $300

At WR Trading, we collaborate with various brokers to offer competitive cashback programs tailored to your trading need and, in comparison to, say, XM, RoboForex, and FBS:

• XM: We can share up to $40 rebates per 1 lot trade with the trader (highest VIP partner level)
• RoboForex: We share 50% rebates, which is 42.5% of the brokers income + 15% of swaps
• FBS: We can share up to $2 – $35 repeats per 1 lot trade (depending on your account type and asset)

Our top cashback programs at WR Trading are notable for their flexibility and the ability to work with multiple brokers, providing traders with more options to maximize their rebates (important when you want to maximize your profitability).

We also provide a user-friendly rebate calculator to estimate your potential earnings.

Rebate amounts vary based on the broker, your account type, and trading volume, and by way of an example calculation:

If a broker offers a rebate of $6 on a lot, and a you execute 100 lots in a month, the total rebate would be:

$6 x 100 lots = $600

From this it can be seen that especially high-volume traders can accumulate substantial rebates, effectively reducing their overall trading costs. 

When is the Forex Cashback Paid Out?

The frequency of cashback payouts depends on the broker or the cashback provider’s policies, and might be:

• Daily: Some programs credit rebates to the trader’s account on a daily basis.
• Weekly: Others may process payments on a weekly basis.
• Monthly: Certain programs consolidate rebates and pay them at the end of the month.

It’s important to verify the payment schedule and method (e.g., direct to trading account, e-wallet, bank transfer) with your chosen provider, so that you know when to expect funds and how they’ll arrive.

Where is the Forex Cashback Paid Out?

Rebates/Cashback are paid directly at your Forex broker into your trading account, a separate “wallet”, or another trading account.

Can the Cashback be on the Spread and the Commission?

Yes, cashback can be applied to both the spread and the commission, depending on the account type:

• Standard accounts: These accounts typically have no commission but include a spread markup (rebates are usually a portion of the spread).
• RAW or ECN accounts: These accounts offer tighter spreads but charge a commission per trade (rebates are often a portion of the commission paid).

Understanding the associated terms of your account type is crucial to determine how rebates are calculated and applied.

What are the Pros of Forex Cashback?

• Reduced trading costs: Rebates have the effect of lowering your effective cost per trade.
• Increased profitability: Especially beneficial for high-frequency traders.
• No change in trading conditions: Rebates are provided without altering spreads or commissions.
• Flexibility: Available across various brokers and account types.

What are the Cons of Forex Cashback?

• Potential for overtrading: The incentive to earn more rebates may lead to excessive trading.
• Complexity: Managing multiple rebate programs across different brokers can be cumbersome.
• Delayed payments: Some programs may have delayed rebate payouts.
• Eligibility requirements: Certain programs may have minimum trading volume requirements.

How does your Trading Volume Influence Forex Cashback?

Your trading volume will directly impact the amount of cashback received (higher trading volumes result in greater total rebates). Some programs offer tiered rebate structures, where the rebate rate increases with higher trading volumes, incentivizing more active trading.

For example, looking at volume tiered rebate structure:

Monthly Volume Traded (Lots)	Rebate per Lot (USD)
0 – 1,000	$0.25
1,001 – 3,000	$0.50
3,001 and above	$0.75

In this structure, as your monthly trading volume increases, so does the rebate per lot, so trading 1,500 lots in a month, for instance, would yield a rebate of $0.50 per lot, totaling $750.

Such tiered programs incentivize higher trading volumes by offering progressively greater rebates, effectively reducing trading costs for the more active traders.

Which Trading Strategies can be used for Earning Higher Rebates?

Certain trading strategies naturally generate higher trading volumes, leading to increased rebates:

Scalping

Scalping is a high-frequency trading strategy that focuses on profiting from small price changes where you’ll execute numerous trades throughout the day, holding positions for very short durations—often seconds to minutes.

• Trade frequency: High, multiple trades per day.
• Holding period: Seconds to minutes.
• Profit target: Small gains per trade, aiming for cumulative profits.
• Tools used: Real-time data feeds, low-latency trading platforms, technical indicators like MACD and RSI.

Scalping is best for traders who can dedicate full attention to markets during trading hours and have a high tolerance for rapid trading environments.

Day Trading

Day trading involves buying and selling financial instruments within the same trading day, with the goal being to capitalize on short-term market movements, avoiding overnight market risk (and costs).

• Trade frequency: Moderate, several trades per day. 
• Holding period: Minutes to hours; positions closed by the end of the trading day.
• Profit target: Larger gains per trade compared to scalping.
• Tools used: Technical analysis, chart patterns, news feeds.

Day trading of this nature is ideal for traders who can monitor markets during trading hours and have a solid understanding of market dynamics.

Grid Trading

Grid trading is a strategy that places buy and sell orders at predetermined intervals above and below a set price, creating a “grid” of orders, aiming to profit from normal price volatility without predicting market direction.

• Trade frequency: Variable, as it depends on market volatility.
• Holding period: Can range from minutes to days.
• Profit target: Gains from price fluctuations within the grid range.
• Tools used: Automated trading systems, predefined order levels.

Grid trading is suitable for traders who prefer a systematic approach and can manage the risks associated with range-bound strategies.

High-Frequency Trading (HFT)

HFT is an advanced trading strategy that involves loads of computing power and algorithms to execute a high number of orders at very high speeds (it’s mainly employed by institutional investors).

• Trade frequency: Extremely high; thousands of trades per day.
• Holding period: Milliseconds to seconds.
• Profit target: Tiny gains per trade, relying on volume.
• Tools used: Sophisticated algorithms, co-location services, high-speed data feeds.

Primarily for large financial institutions with the resources to invest in advanced trading infrastructure.

All told, these strategies can significantly increase trading volume, thereby maximizing rebate earnings.

Is a Forex Cashback Program Legal or Not?

Forex cashback programs are perfectly legal in 99% of jurisdictions, provided they comply with financial regulations and are offered by regulated brokers or authorized affiliates.

You should ensure that the cashback provider operates transparently and in accordance with the regulatory standards of their respective countries.

In conclusion, it’s essential to choose reputable providers and align rebate strategies with your individual trading style and anticipated volumes, so that you can effectively reduce your trading costs and up your profitability.