Cashback programms, any good?

[Jethro69]

While surfing a bit through FPA website, I noticed that a lot of those Cashback programms got rated with 5 stars. Like http://www.cashbackforex.com/ for example with 81 reviews. Does anyone use such a programm, does it make sense to generate some extra cash?

[Darren]

I have used CashBackForex since summer 2011 and have made a huge amount of money on rebates so highly I would highly recommend them. Do the maths though to make sure it suits your type of trading.

Once setup I find a nice deposit in my bank account every month so it really is set and forget for a passive income.

[Dave]

Interesting post, Jethro. Firstly, it's important to know you're not generating extra cash, but effectively receiving a discount on the transaction costs of trading, albeit through a rebate system. Equally as good though, and achieving the goal of increasing the bottom line.
I'm usually sceptical about these sort of things but I'll do some more research. The idea of reducing my commission costs is a very attractive one! In the long run, if every trade you take is now, for example, 0.05% bigger as a result of reduced expenses then the roll up is substantial.
Thanks

[Dave]

Hey guys,
I've just opened a small account with Dukascopy EU and initiated a cashback program with ravesa.com (46% of paid commissions!!!). I'll keep you posted on how this works out after I use the account for a few months and test its validity, but as mentioned before, with ECN spreads and a 46% reduction in commission costs this could see a substantial difference in the long term. My current commission is AUD$7.00 per lot turnaround, and the small Duka account is USD$7.00 per lot turnaround, and then apply the 46% rebate, so USD$3.78. So just as long as the AUDUSD doesn't hit 0.6 in the near future then it's all gravy.
p.s. someone remind me to update this post in about January \m/
Dave

[Dave]

Here's my update....
There were some teething problems with Dukascopy so I didn't persist with using their API to connect to MT4. I then setup a cashback rebate with IC Markets which has worked a treat, reducing commission from $7 to $5.50 with a rebate received monthly via paypal.
Last night I found an ever better rate with Think Forex, $6 reduced to $4 with rebate. Their spreads seem about 0.1-0.2 pips higher on the majors but this is well and truly covered by the reduced commission. And their commission scale is sliding relative to volume traded. I'll update with how Think goes a few months from now.
Dave

[Dave]

Here's my update.....
If you don't have a cash back program setup (e.g. http://www.cashbackforex.com/en-us/home.aspx#aid_38318 ) then you're just robbing yourself. Takes a very short amount of time to register and every month I get a percentage of my paid commissions back, for doing nothing that I don't ordinarily do. It reduces my trading costs and therefore increases profit. I use Think Forex as my broker and Cashbackforex for the rebates and am very happy with their services. There's plenty of other combinations out there that would work just as well, but stop paying full price to trade!!!
Nice one

[Darren]

Glad to see that the rebates keep rolling in Dave! I haven't had any recently as I have been trading Dax and I don't get rebates for indices, which is a real shame as it would really pile up! If anyone knows any brokers that pay commission on Dax then let us know!

Cheers.