Although forex cashback has been in existence for quite a few years, not many traders use is. It is a schame because it can be an additional income source, and there is no risk in it.
How does it work?
Every transaction has a transaction fee what is called spread and this is the amount you have to pay for the brokerage to use their platform and tools for trading. If you apply for a cashback service you get a part of that spread after every trade you place. The amount of the cashback depends on the lot size and of course on the spread. For example if you trade 1 lot EUR/USD the spread is typically 1-3 pips at most brokers which means you have to pay 10-30 usd to the broker after opening a position. If you are connected to a cashback service you can get back approximately 3-10 usd from one position depending on the amount of trades you place in a certain period. To make it easier let’s calculate with 10 usd. If you are a daytrader or even a scalper you open 5-10 or even 20-30 positions a day. Let’s calculate with 10 positions a day and 20 trading days in a month. 10*10*20=2000usd a month. This is 24000usd a year and you wouldn’t get this money if you weren’t connected to a cashback service! If you trade bigger lot sizes the amount of cashback will be proportionally higher.
How to create passive income with forex cashback?
Some traders use expert advisors, so called trading robots. These systems usually open multiple positions a day depending on the run strategy. If you are connected to a cashback service you will get cashback after every position so you can have and additional passive income source without any investment!
How much does it cost?
The one I am using is totally free, there is no registration or running cost.
Why does the brokerage give back a part of its profit, where is the trick?
Apart from giving cashback to the registrated users, the cashback providers promote the brokerage companies and therefore they don’t mind paying out some of their profit.
How to choose a cashback service provider?
There are some cashback providers on the market. The one I have been using for more than 3 years always pay me in time and I get detailed statistics about the trading volumes and comissions. You can register here. You can get your comission into Paypal, Neteller, Skrill and even to your bank account. You can withdraw you cashback anytime when the amount reaches 20 usd except if you want to withdraw your money into a bank account, in the latter case the minimum amount is 250usd.
What are the steps of the registration?
Just register here and on the site choose the broker where you want to trade. It is important that if you choose the brokerage where you have been trading you need to register a different type of account! For example if you have been trading on a micro account now you need to choose a standard account. This rule only applies when you want to trade at the same broker where you have been trading till now. If you choose a different broker you can select any kind of account.
How to generate a second passive income source with forex cashback?
If someone like a product or a service they will recommend it to their friends. For example: you see a good movie in a cinema and you suggest you friend to watch it. Will the cinema pay you comission for that? No! But if you like the forex cashback service you can recommend it to others because you will have your personal link what you can send to your friends in email or messenger. If they register you will get 10% of their cashback for life! Imagine when you have 10 or 100 or even 1000 users and you get 10% of their comission!