What is cashback on overseas forex trading? A complete guide to choosing a cashback site, its drawbacks, taxes, and more

If you're going to trade forex overseas,definitely lose money if you don't take advantage of cashback offers. However, many people probably have questions like the following:

• What exactly is cashback?
• What should I do to get the best deal?
• Are there taxes on profits earned through cashback?

This article addresses these questions and explains key points and precautions to consider when choosing a website.It's written in an easy-to-understand way, even for beginners, so please use it as a reference!

Advantages & Disadvantages of Overseas Forex Cashback Sites / How to Choose One

In simple terms, overseas forex cashback is a service that gives money back to users

You can receive money when opening an account or making a deposit, depending on the volume of your trades

There are two types of cashback available:

1. Direct cashback: A bonus unique to overseas forex brokers
2. Indirect cashback: Bonuses from cashback websites (companies that specialize solely in cashback)

The former involves receiving money not as cash, but as margin for trading, and includes account opening bonuses and deposit bonuses

The latter involves direct cash deposit into your account. All cashback programs offered by cashback websites fall under this category of "indirect cashback."

What are overseas forex cashback sites?

A "cashback site" is, simply put,like an agent for overseas forex brokers. When you open an account through the site, the overseas forex broker pays the cashback site a referral fee.

Based on the trading volume of site users, cashback sites receive money from overseas forex brokers each time. A portion of this money is then returned to site users as a bonus. This cashbackcan be received for every trade.

To get the best deal possible, it's essential to have a good understanding of cashback programs

Why do they offer cashback?

Why do overseas forex brokers offer cashback to their users? At first glance, it might seem like they're just handing out money. However, by implementing a cashback system, both the broker and the user actually create a win-win situation

In short, overseas forex brokers make money from the fees charged for each trade. The more users they have, the greater the total trading volume, and the more fees the brokers can collect from their users

It's safe to assume that brokers offer cashback to attract more users. They're happy if giving back to users, even a little, encourages more people to try FX trading

You might feel suspicious about getting paid just for making a transaction, but the businesses are doing it to make a profit, so please use their services with peace of mind

Profits earned through cashback are subject to tax (a tax return must be filed)

Cashback is a great service that gives you money back for every transaction, but if I had to point out a downside, itthe money you earn is subject to taxes.

The bonuses you receive from cashback sites are deposited directly into your account as cash. Since you can withdraw the deposited money from your account as cash, the money you receiveconsidered profit earned from FX trading.

As a result, any profits earned through cashback must be included in your tax return. Note that, like profits from FX trading, it is treated as taxable income

Profits earned from overseas forex trading (including cashback) are subject to comprehensive taxation as miscellaneous income

The tax rate for comprehensive income is determined by a progressive tax system (seven brackets ranging from 4% to 45%). The more profit you make, the higher your taxes will be, so be sure to carefully check your own profits

On the other hand, bonuses offered by FX brokers are generally not subject to taxation. This isbecause they are distributed as margin or points, not actual cash.

It's important to choose an overseas forex broker that you want to use for trading

Avoid choosing an overseas forex broker based solely on cashback offers. Even if a site offers seemingly good cashback rates,its spreads may be wider than those of other companies.

You should choose a cashback site following these steps:

1. Choose the service provider you want to use
2. Choose a cashback site that handles your chosen overseas forex broker
3. Compare them based on the cashback rate and narrow it down to one

The most important thing is to avoid losses in trading. Don't be fooled by temporary campaigns or high cashback rates offered by FX brokers

It's important to choose a cashback site based on the overseas forex broker you want to use, or one you trust

Even if you are already registered with an overseas forex broker, you can open an additional account

If a broker allows you to open multiple accounts, you can open a new account with the same broker through a cashback website. (You can open an additional account even if you already have one with that broker.)

Some brokers (such as iFOREX) only allow you to open one account, so if you're just starting out with FX, we recommend checking the following two points before opening an account

1. Number of accounts that can be opened
2. Partner cashback sites

Be aware that some companies may not even allow account opening through cashback websites

Money Charger (Manecha) partners with popular businesses

MoneyChat partners with popular overseas forex brokers among Japanese users. All partners offer Japanese language support, so you can use them with peace of mind. The following four companies are partnered with MoneyChat:

1. Gemforex
2. FXGT
3. IS6FX
4. FXBeyond

The cashback rates offered by MoneyChat at the four companies mentioned above are considerably higher than those of other cashback websites

*IS6FX has relatively few Japanese users and can be considered suitable for intermediate to advanced FX traders

Also, be sure to check if there is any direct cashback offer

• Bonuses offered independently by overseas forex brokers = direct cashback
• Bonuses from cashback sites = indirect cashback

In most cases, it is not possible to receive both of the above simultaneously

Therefore, we recommend that you first check directly whether or not a cashback offer is available

If you want to open an account with an overseas forex broker that doesn't offer direct cashback,the account through a cashback websitewe recommend opening

Overseas forex brokers that offer direct cashback	・GemForex ・Hotforex ・XM ・LAND-FX ・iFOREX ・FBS
Overseas forex brokers that do not offer direct cashback	・Tradeview ・Axiory ・FxPro ・TitanFX

Comparison of overseas forex cashback sites

We've compiled a list of six reputable cashback sites for overseas forex trading from the many available options

All of these services are safe to use, making them especially recommended for those who have no prior account opening experience or trading history

Some websites may be running their own unique campaigns

particularlycharacterized by its high cashback rates for popular FX brokers such as Gemforex and FXGT.

Since the ease of use doesn't vary much, it's best to choose based on the campaigns offered by each cashback site

Choose a trustworthy cashback site

The following three points are key when choosing an FX cashback site:

1. Reliability
2. Whether they are partnered with the FX broker I want to use
3. Cashback rate

Of these factors, reliability should be given particular importance. Some cashback companies engage in unethical practices, such as falsifying the amount of cashback or simply taking personal information without actually providing the cashback

especially cautious of companies that do not possess a financial license or that do not list their company address.

The number of brokers is an important factor to consider, but first, check whether the broker you want to use is affiliated with them. A large number of brokers doesn't necessarily mean a good broker. It's enough to think of it as simply "more brokers = more options to choose from."

While a higher cashback rate is always preferable,the trading fees of the partner FX brokers may be highit's important to be aware that

Please use Money Charger (Manecha) with confidence

Our company primarily operates in the Asian region (Singapore, Vietnam, Taiwan, Japan, mainland China, Hong Kong, South Korea, etc.)

Our track record of referring clients to brokers is among the best in the industry, exceeding a total of US$100 million (approximately 11.5 billion yen) in seven years

We also provide comprehensive support for broker operations, including strategic planning and marketing consulting during the initial setup of a brokerage, as well as development of core systems

Manecha has strong connections with brokers, which好to offer services under favorable conditionsallows them

summary

There are many overseas forex brokers and websites that offer cashback, but there are also many things you should know. Let's review the important points once again

• It's a good idea to use cashback offers to gain an advantage in trading
• There are two types of cashback offers for overseas forex trading: bonuses offered by the forex broker itself (direct cashback) and bonuses offered by cashback websites (indirect cashback)
• Direct and indirect cashback cannot be received simultaneously
• When choosing a cashback site, it's important to prioritize reliability
• Even with cashback, profits received in cash are subject to tax

Select the information you need and find the company that best suits your needs!