Thad’s Personal Review of CashBackForex.com

There has been a lot of interest in Forex trading rebates offered by introducing brokers recently, and CashBackForex.com are one of the pioneers of this “cash back” offer. Before you get all excited about their rebates and sign up for a trading account through them, you should be aware of exactly what you are getting yourself in to so that you can make an informed decision.

First and foremost, you need to understand one thing. CashBackForex.com are an introducing broker, and as such, they earn a commission based on the trades you make with any account you open with a recommended broker of theirs. At the end of the day, they stand to gain financially from you joining one of their recommended brokers, so you should do your research before you sign up for any of them.

How Does CashBackForex.com Offer “Cash Back” For Your Trades?

Based on the commissions that CashBackForex.com earns from your trading activity, they take a portion of this commission and give it back to you as a rebate. In case you didn’t realize, Forex brokers earn their revenues through charging you a spread for your execution in lieu of a brokerage fee. They in turn pay part of the spread to the introducing broker as a commission, and then CashbackForex.com passes on part of that commission to you. That’s where the rebate comes from.

Essentially, what this means to you is that you pay less of a spread than if you were to go directly to the executing broker themselves, which is great. However, you should still check that you’re getting a better spread by going through CashBackForex.com than say if you went through a broker that’s not recommended by CBF. For example, if you trade the majors like the EUR/USD, and the post-cash back spread offered through CashBackForex.com is 1.5 pips, then it’s only a good deal if you can’t find any broker that will match or better that spread.

What You Need To Know Before Signing Up With CashBackForex.com

Before you sign up with one of the recommended brokers through CashBackForex.com, you should also do your homework on the particular broker that you’re considering. Just because a broker is recommended by CBF doesn’t mean that they’re good or that you should trust them. It just means that they’re paying CBF a commission. You still have the responsibility to do your due diligence and check that the broker you are considering ticks all the boxes in terms of offering a competitive spread, having a good trading platform and providing efficient and effective executions. And of course it goes without saying that your money should be kept in a segregated account that is safe at all times.

Given the choice between signing up through CashBackForex.com or not for the same broker though, I would have to say that going through CBF is a no brainer. You will certainly get the best deal for your bid/ask spread by going through CashBackForex.com instead of going directly to the executing broker in question. That’s why many people have chosen to use CBF’s services as an introducing broker. In addition, they offer one of the highest cash rebates among the “cash back” Forex brokers you’ll find on the internet, which is not surprising considering that they are one of the pioneers off this offer.

All in all, if you’re sitting on the fence about whether CashBackForex.com is for you, then ultimately you should consider if you’re getting the best deal through CBF for the spread of the currency pairs that you trade. If you are, then you have nothing to lose by signing up through their service, as long as you do your due diligence on the brokers that they recommend.