Switching overseas FX cashback programs means changing the Introducing Broker (IB) for your trading account from your current site to a different cashback site . Since many overseas FX brokers do not allow you to change your existing IB after the fact, the common method is to " open a new additional account with the same FX broker and link that account to the new site ." This is free of charge, and you can resume cashback-eligible trading as quickly as the same day
This article explains the switching mechanism, the four-step procedure, points to note when opening an additional account, how to choose a site, what to do if the changes are not reflected, and how taxes are handled. If you need specific linking procedures for each broker, it's quicker to first check the list of IB linking change methods for each broker
What is a cashback switching offer?
Switching between cashback sites means changing the recipient of the cashback (rebates) earned from your trades. Essentially, this is the process of changing your IB (Introducing Broker) for your account . If you're still unsure about the cashback system itself, it's helpful to first understand the overall picture by reading about overseas FX cashback
Only a few brokers allow you to change your IB partner for an existing account. Some brokers, like STARTRADER, directly support IB changes for existing accounts, butmost require you to open a new additional account. Availability varies from broker to broker, so be sure to check the policy of your broker before switching.
There are no fees for switching accounts, and opening additional accounts is also free. Your old account will remain open, so you don't have to worry about losing your positions or trading history
Why switch cashback websites?
The main reason for switching brokers is, in short,"further reduce trading costs." Since cashback is provided in the form of several dollars per lot, the difference in the cashback rate directly translates to a difference in effective trading costs. The width of the spread itself also affects trading costs, socompare the spreads and fees of overseas forex brokersand make your decision based on the total cost.
The main reasons for considering switching carriers can be summarized into the following three points:
- Cashback rate: I want to receive a higher cashback rate than the site I'm currently using.
- Deposit speed and withdrawal conditions: Slow processing, dissatisfaction with withdrawal fees and minimum withdrawal amount.
- Supported Brokers/Features: I want to switch to a service that supports the broker I want to use, and also supports EAs and copy trading.
As a guideline, for traders with an annual trading volume exceeding 100 lots, even a small difference in the return per lot can result in a difference of tens of thousands of yen per year. The more you trade, the greater the benefit of switching platforms
What are the basic steps for transferring trains?
The transfer can be completed in the following four steps, and if everything goes smoothly, you can start cashback-eligible transactions as early as the same day
Step 1: Register with a new cashback site
Create a free account on the cashback site you're switching to. Many sites offer free registration and usage fees, and the process only takes a few minutes by entering your email address and basic information. If you're unsure which site is right for you, please refer to "Which Cashback Site Should You Choose?" below
Step 2: Open an additional account with an FX broker
Log in to your FX broker's My Page and create a new trading account from the "Open Additional Account" menu
At this stage,crucial to correctly enter the designated partner code (IB code/referral number). If the code is incorrect, your transactions will not be eligible for cashback. The code name and input location vary depending on the broker, so be sure to check before opening an account.
Step 3: Link your account number
From your My Page on the cashback website, register and apply for your newly opened account number. Once you receive a notification that the linking is complete, the setup is finished
Specific linking procedures for each broker (specifying IB codes and requesting linking changes)the list of IB linking change methods for each broker. If the broker supports IB changes for existing accounts, you may only need to submit a change request without creating an additional account.
Step 4: Move funds and resume trading
Funds will be internally transferred from your old account to your new account, and you will begin trading in the new account. From then on, only trades made in the new account will be eligible for cashback. The speed and conditions for the cashback to be reflected vary depending on the site, so it is recommended to check your My Page to ensure that the cashback has been properly credited the first time
What are some things to keep in mind when opening an additional account?
When opening an additional account, be sure to check these three points beforehand: account type, bonus, and IB linkage . Also, be aware of the points to note and disadvantages of cashback , which will help prevent you from being disappointed after switching.
Account type selection restrictions
Some brokers may not allow you to choose zero-spread accounts or ECN accounts when opening additional accounts. Also, the cashback rate often differs depending on the account type, so please check with both the broker and the cashback site to see if your desired account type is eligible for additional account opening and cashback
Handling of deposit bonuses
Deposit bonuses received in an existing account will not be carried over to an additional account. Some brokers, such as XMTrading, may offer separate bonuses to additional accounts, but this varies from broker to broker. For brokers that offer generous bonuses with a cushioning feature, compare cashback and direct bonuses to see which is more advantageous before making a decision
Can IB linkage be changed?
Most brokers do not allow you to change your Introducing Broker (IB) after opening an account through a different cashback site. However, some brokers, like STARTRADER, directly support changing the IB for existing accounts. You can check the specific procedures for brokers that support this change inthe Linking Change Method List (by Broker). If you are unsure, it is best to check with the FX broker's support before switching.
Which cashback site should I choose?
When comparing cashback sites,: ① cashback rate (rebate rate), ② speed of deposit and withdrawal conditions, and ③ supported brokers and features. Choosing solely based on the cashback rate can lead to unsuitable brokers or unfavorable withdrawal conditions, ultimately resulting in a loss overall.
The table below shows a comparison of major services (reward rates vary depending on the provider and account type, so please check each website for the latest values)
| item | Money Charger | TariTali | FXRoyalCashBack |
|---|---|---|---|
| Maximum cashback rate | up to 140% | Private (by vendor) | Private (by vendor) |
| Average deposit time | 47 seconds | Same day to next day | Same day to next day |
| Registration and usage fees | free | free | free |
| Cumulative payment history | approx. Over $125,000,000 | private | private |
| EA/Copy Trading Compatible | can be | none | none |
Money Charger offers advantages in both cashback rates and deposit speed, and also provides trading support features such as ranking comparisons for EAs (automated trading) and copy trading. The latest supported brokers and cashback rates can be found in the supported broker rankings , and detailed comparisons of each site can be found in the comparison of overseas FX cashback sites
What if the cashback isn't reflected after switching providers?
The most common reason cashback isn't being creditedan incorrect partner code entryorfailure to link the account number. Please check the following checklist first.
- Did you correctly enter the partner code (IB code) when opening the additional account?
- Have you registered your account number on the cashback site's My Page?
- Have you received a notification email confirming that the linking process is complete?
- Is the account used for the transaction the same as the linked account?
- Are the target account type and securities eligible for cashback?
If the issue is caused by an incorrect code entry, retroactive correction may be difficult. If the problem persists after checking all of the above, contact both the FX broker and the cashback site. Before contacting them, it's a good idea to double-check the correct code and linking method for each broker to ensure a smoother process
How are cashback payments taxed?
The amount received in cash from a cashback site is classified as miscellaneous income (subject to comprehensive taxation) , just like the profits and losses from overseas forex trading, and is subject to filing a tax return (Source: National Tax Agency Tax Answer "No. 1500 Miscellaneous Income" ).
The tax rate is progressive, ranging from 5% to 45% in seven brackets depending on income , plus approximately 10% in local taxes (Source: National Tax Agency, "No. 2260 Income Tax Rates" ). For company employees (salaried workers), a tax return is required if annual miscellaneous income, including cashback, exceeds approximately $1,250. Detailed calculations and filing procedures are explained in the Overseas FX Cashback Tax and Tax Return Guide
Money Charger's My Page allows you to view a list of your annual cashback earnings, which is convenient for calculating your totals when filing your tax return
Frequently Asked Questions (FAQ)
Do I have to close my existing account before I can switch providers?
No cancellation is necessary. Simply open an additional account while keeping your existing one and link it to the new cashback site to complete the transition. Your old account's positions and trading history will remain intact
Can I use multiple cashback sites simultaneously?
Only one cashback site can be linked to a single trading account. However, it is possible to open multiple additional accounts with the same FX broker and link each account to a different cashback site
Will I still be eligible for cashback on EAs and automated trading systems after switching providers?
Money Charger also offers cashback on trades made using EAs (Expert Advisors). Furthermore, it provides comparison functions for EA rankings and copy trading rankings, creating a practical environment for automated trading traders
Can I re-link an existing account to MoneyCharger?
Some brokers allow you to change the IB (Introducing Broker) of your existing account to Money Charger. Availability and procedures vary by broker, sothe IB linking change method list for each broker. For brokers that do not support this, you will need to switch by opening a new additional account.
Are there any fees or charges for transferring?
Switching providers itself is free of charge. Registering for and using cashback sites, as well as opening additional accounts, are also basically free. You can proceed while keeping your old account open, so you can try it without any risk
Summary: Key points to consider when selecting a new service provider
Switching to an overseas forex cashback provideropening an additional account and accurately entering the partner code. If your broker supports IB changes for existing accounts, you may only need to submit a change request. First, check the support status of your current broker.
When choosing a site,cashback rate, deposit speed, and supported brokers/features. Money Charger boasts a maximum cashback rate of 140%, an average deposit time of 47 seconds, and cumulative payment history exceeding approximately $125,000,000. In addition, it offers a wealth of features, including support for EAs and copy trading. Choose a service that you are satisfied with and maximize the reduction of your trading costs.
