Hello all, I’ve traded currency in the past, and am getting back into it as we speak.
I have a question, the legitimacy of these broker referral rebate programs that are being offered on websites such as cashbackforexusa where they offer .70 of a pip back to you per lot traded through FXCM (the broker I use). I’ve never heard of these referral sites like this before, and have definitely never tried them, but I’m curious as to if they’re legit. I mean, .70 of a pip isn’t that much, but over a months time that could add up to hundreds of bucks. So, any way to save money safely, I’m all about.
So, has anyone had any experience with this? If so, I’d love to hear!
Thanks in advance.
Sean
They are out there and the only way you know for sure is to sign up and use them. I had a friend who used one for binary options and they paid him out every month. I think it is better to sign up with your brokers referral program than through a third party to be honest.
Most of the long standing ones are legit and are worth using. They effectively are affiliates for brokers (help advertise them) and give you a proportion of the ‘advertising revenue’ they earn from the broker.
Here is where I seem to be running into a problem. I’ve read reviews where people vouch for the programs and others where they state that when you sign up through your broker from a referral site, the broker widens your pip spread, to cover the cost that they are dishing out to the said broker, or some such thing, essentially making it so that you actually are paying for the rebates you receive.
Anyone have any knowledge on this, either way?
I have not used them, but you raise an interesting point and I would like to hear from someone who actually used an affiliate program like that on their experience. I did refer a few friends to my broker, but insisted to get a one-time payment rather than a share of my friends trading volume.
I think it’s a good way to get back some extra money. I am joining a rebate program like this and the money back is pretty good (especially when your trading volume is larger). Some brokers don’t offer rebate directly to clients, but their 3rd partners offer it as a “compensation share”. Brokers pay them, they share with you. I think it’s win-win solution.
But don’t put this condition on the top when chosing a broker, it’s just an extra benefit.
As long as you are aware of the terms and conditions then I assume it is a nice extra flow of income if you are able to refer active traders.
You are right there, for sure: the long-standing ones are legit and transparent. I use one myself and get paid monthly, it just makes sense to get paid on every trade, win or lose. And, no, my spreads and trading conditions with my broker do not change… FPA is good site to check user reviews and I’m sure there are other forums out there with solid feedback.