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Money Charger- For International FX Cash-Back Service

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What is Forex cashback? A complete guide on how to choose a cashback site, disadvantages, taxes, etc.

If you are doing Forex, you will definitely lose out if you don’t use the cashback. However, many people may have questions such as the following.

  • What is cashback anyway?
  • What can I do to get the most out of it?
  • Are there taxes on the profits I get from cashback?

This article will answer these questions and also explain the key points and things to look out for when choosing a site. It’s easy to understand even for beginners, so please use it as a reference!

Advantages & Disadvantages of Forex Cashback Sites / How to Choose

Simply put, Forex cashback is a service that gives money back to users.

When you open an account or make a deposit, you can receive money according to the amount of trading.

There are two types of cashback.

  1. Direct cashback: A bonus unique to Forex brokers.
  2. Indirect cashback: A bonus from a cashback site (a broker that specializes only in cashback).

The former is not cash but money that you receive as margin when trading, and includes account opening bonuses and deposit bonuses.

The latter is cash that is directly deposited into your account. All cashback sites fall under this “indirect cashback” category.

What are Forex cashback sites?

“Cashback sites” are simply like an agency for an Forex company. If you open an account through the site, the Forex company pays the cashback site money as a referral fee.

Depending on the amount of trading by the site user, the cashback site receives money from the Forex company each time. This is a system in which a portion of the money earned there is returned to the site user as a bonus. And this cashback can be received for each transaction.

In order to make the most of your trading, you need to have a deeper understanding of cashback.

It’s OK to understand that cashback can reduce fees. If you have knowledge of , it’s easier to understand if you think of it in terms of spreads as follows.

Example: When you receive $3 cashback per lot (100,000 currency units)

  • You can receive $3 in cash for each lot of trading.
  • If the spread is 1.0 pips, 0.3 pips will be refunded for $3.

The amount refunded can make the spread width (1.0-0.3) pips, making the actual spread 0.7 pips.

The logic is that cashback can narrow the actual spread.

Why do they offer cashback?

Why do Forex brokers offer cashback to users? At first glance, it seems like they are just handing out money. However, in fact, by introducing a cashback system, the broker and the user have a win-win relationship.

In conclusion, Forex brokers make profits from the fees incurred for each transaction. The more users there are, the higher the total amount of transactions, and the broker can receive more fees from users.

It is OK to think that brokers are offering cashback to attract more users. By giving back even a little to users, they will be happy if more people decide to try FX!

You may feel that it is suspicious to give money just for trading, but the broker is doing it to make a profit, so please use it with confidence.

Profits earned from cashback are subject to tax (tax return required)

Cashback is a great service that gives you money back for every transaction, but if you had to point out a disadvantage, it would be that the money you earn there is taxed.

Bonuses earned from cashback sites are deposited directly into your account as cash. The transferred money can be withdrawn from the account as cash, so the money received is considered as profits earned from FX trading.

As a result, profits earned from cashback must be reported when filing tax returns. Just like profits earned from FX trading, they are treated as taxable income, so be careful.

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

The tax rate for comprehensive taxation is determined by a progressive tax system (In Japan, the tax rate is 4-45%, in Vietnam, the tax rate is 5%-35%, and in Singapore, it is up to 22%.). The more profit you make, the higher the tax, so be sure to check your own profits.

On the other hand, bonuses provided by FX brokers themselves are generally not subject to taxation. This is because they are simply distributed as margin or points, and are not actually distributing cash.

It is important to choose an Forex broker that you want to use for trading

Don’t choose an Forex broker based on the cashback. Even if a site appears to have a good cashback rate, the spread may be wider than other companies.

It is a good idea to choose a cashback site in the following steps.

  1. Choose the broker you want to use
  2. Choose a cashback site that deals with the Forex broker you have chosen
  3. Compare the cashback rates and narrow it down to one

The most important thing is not to lose money on trading. Don’t be fooled by temporary campaigns or high cashback rates offered by FX brokers.

It is important to choose a cashback site based on the Forex broker you want to use or the Forex broker you trust.

You can open additional accounts even with Forex brokers you have already registered with

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

Some brokers only allow you to open one account (such as iFOREX), so if you are just starting out in FX, we recommend that you check the following two points before opening an account.

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

Please note that some companies do not allow you to open an account via a cashback site in the first place.

Money Charger (Monecha) partners with popular companies

Maneccha is affiliated with overseas FX companies that are popular with Forex Traders. The following four companies are affiliated with Maneccha.

  1. TitanFX
  2. HFM
  3. Exness
    Axi
  4. ThreeTrader
  5. BingX
  6. FXGT
  7. IS6FX
  8. Monaxa
  9. VTMarkets
  10. JadeForex

The cashback rate of Monecha at the above four companies is quite high compared to other cashback sites.

Check whether there is a direct cashback

  • Bonuses offered by Forex brokers themselves = direct cashback
  • Bonuses from cashback sites = indirect cashback

In most cases, you cannot receive both of the above at the same time.

Therefore, we recommend that you first check whether or not there is a direct cashback.

If you want to open an account with an Forex broker that does not offer direct cashback, we recommend that you open an account via a cashback site.

Foreign FX brokers with direct cashback・GemForex
・Hotforex
・XM
・LAND-FX
・iFOREX
・FBS
Foreign FX brokers without direct cashback・Tradeview
・Axiory
・FxPro
・TitanFX

Comparison of Forex cashback sites

We have compiled a list of 6 proven Forex cashback sites from the many available.

All of them are safe to use, so they are especially recommended for those who have no experience of opening an account or trading.

  Established Ease of use Recommendation
①Money Charger 2013
②FXRoyalCashBack 2013
③TariTari 2012
④FinalCashBack 2013
⑤CASHBACK-Victory 2014

Each site may have its own campaign.

Money Charger is particularly notable for offering high cashback rates for popular FX brokers such as Gemforex and FXGT.

Ease of use is not much different, so it’s a good idea to choose one after looking at the campaigns on each cashback site.

■Do the four partners of Money Charger offer cashback directly?

The cashback offered by the four partners of Money Charger is as follows.

IS6FX Account opening bonus: 20,000 yen
Deposit bonus: 100% up to 1 million yen

What is IS6FX? Thorough explanation of reputation, deposit & account opening bonus, deposit and withdrawal methods, etc.!

FXGT Account opening bonus: 5,000 yen
Deposit bonus: 120% up to 70,000 yen, 30% for second and subsequent deposits
What is FXGT? Thorough explanation of reputation, deposit & account opening bonus, deposit and withdrawal methods, etc.!

However, direct cashback is often a limited-time campaign, so if there is a company you are interested in, we recommend that you visit the official website regularly and check.

Choose a reliable cashback site

The following three points are important when choosing an FX cashback site.

  1. Reliability
  2. Whether or not they are affiliated with the FX broker you want to use
  3. Cashback rate

Among these, you should pay particular attention to reliability. Some cashback providers may cheat on the amount of the refund, or may take out personal information and not give you a cashback in the first place.

Be especially careful of brokers that do not have a financial license or do not list their company address.

The number of trading partners is also an important factor, but first check whether the broker is affiliated with the FX broker you want to use. A broker with a large number of trading partners is not necessarily a good broker. It is okay to think of a large number of trading partners as meaning more options for brokers.

Although the higher the cashback rate, the better, it is necessary to be careful because the transaction fees of the affiliated FX brokers may be high.

Use Money Charger with confidence

Our company provides services mainly in Asia (Singapore, Vietnam, Taiwan, Japan, mainland China, Hong Kong, Korea, etc.).

We are one of the top companies in the industry in terms of customer introductions to brokers, and have introduced over 100 million US dollars (approximately 11.5 billion yen) in total in seven years.

We also provide a wide range of support for broker operations, such as strategy planning and marketing consulting at the time of broker launch, and development of core systems.

Because Manecha has deep ties with brokers,ient(transparent 80%,#ffff99 80%);”>GoodServices can be provided under conditions.

Summary

There are many Forex companies and sites that offer cashback, but there are many things you should know. Let’s review the important points again.

  • It is better to use cashback to trade advantageously.
  • There are two types of Forex cashback: FX company’s own bonus (direct cashback) and cashback site bonus (indirect cashback).
  • Direct and indirect cashback cannot be received at the same time.
  • It is important to choose a cashback site that is reliable.
  • Even if you receive cash back, you will be taxed on any profits you make in cash.

Choose the information you need and find the company that best suits you!

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