TL;DR — When you trade through a cashback provider like Expaid, you are still trading directly with the broker, but the broker pays a commission to the provider, which is then passed back to you as a rebate. Going direct means the broker keeps that commission, so in most cases, using a cashback provider pays more over time.
How Broker Commissions Work
Every forex and gold broker pays a commission to introducing brokers (IBs) for every lot their clients trade. This is a standard part of the industry, similar to how affiliate programs work in other sectors. The commission is built into the broker's cost structure, regardless of whether you sign up directly or through an IB.
When you go direct, the broker retains that commission as part of their revenue. When you use a cashback provider, the provider negotiates a share of that commission and returns it to you. The key is that the broker pays the commission either way—it is not an additional cost to you.
This means the real question is not whether you pay more when using a cashback provider—you do not. The question is who keeps the commission that the broker has already allocated.
Cashback vs Direct: Cost Comparison
To understand the financial impact, consider a typical scenario. Suppose a broker charges a spread of 1.0 pip on EUR/USD and pays an IB commission of $7 per lot. If you trade directly, you pay the full spread and the broker keeps the $7. If you trade through a cashback provider, you still pay the same spread, but the provider returns a portion of that $7 to you, say $5 per lot.
Over 100 lots, that is $500 back in your pocket. Over a year of active trading, the difference becomes substantial. The table below illustrates the difference for a hypothetical $5 per lot rebate:
| Trading Volume (Lots) | Direct Broker (Commission Kept) | With Cashback Provider (Rebate Paid) |
|---|---|---|
| 10 | $0 back | $50 back |
| 50 | $0 back | $250 back |
| 100 | $0 back | $500 back |
These figures are illustrative—actual rebate amounts vary by broker and account type, but the principle holds: you are leaving money on the table by not using a cashback provider.
Who Really Pays for Your Rebate?
A common misconception is that cashback providers add a markup or that the broker passes the cost to the trader through wider spreads. In reality, the broker's IB commission is independent of your trading costs. Brokers set their spreads and commissions based on their own costs and profit targets, and the IB commission is a marketing expense.
When you use a cashback provider, the broker pays that commission to the provider, and the provider shares it with you. Your spreads and fees remain exactly the same as if you went direct. The broker does not increase your costs because you use an IB; it simply reallocates the commission it was already paying.
This is why cashback providers can offer rebates without affecting your trading conditions. The money comes from the broker's existing IB budget, not from your pocket.
Benefits of Using a Cashback Provider
- Lower effective trading costs: A per-lot rebate reduces your real cost on every trade, win or lose.
- No change to your trading: You trade directly with the broker, using the same platforms, spreads, and execution.
- Daily payouts: Rebates are typically credited daily, so you see the benefit immediately.
- No minimum volume requirements: Unlike some broker loyalty programs, cashback providers usually have no strict volume thresholds.
For active traders, the cumulative effect of rebates can be significant. Over months, the savings may cover a portion of your trading costs or even fund additional trades.
Choosing the Right Cashback Provider
Not all cashback providers are the same. When evaluating options, consider the following:
- Transparency: Look for providers that clearly show the rebate per lot for each broker and account type.
- Reliability: Check reviews and the provider's track record. A reputable provider should have been operating for several years.
- Broker coverage: Ensure the provider works with brokers you are interested in, such as Exness, XM, or FXPro.
- Payment frequency: Daily rebates are more attractive than monthly ones because you get your money sooner.
Our broker rate board lists current rebate offers, and you can calculate potential earnings with our rebate calculator.
In our view — The cashback model is one of the few win-win arrangements in trading. The broker gets a client, the IB gets a commission, and you get a rebate. If you are not using a cashback provider, you are effectively donating your IB commission to the broker.
Does Using a Cashback Provider Change Your Broker Relationship?
No. When you sign up through a cashback provider, you are still a direct client of the broker. You will have the same login, the same support, and the same trading conditions. The provider does not interfere with your account or your trades.
Some traders worry that the broker might treat them differently if they use an IB. In practice, brokers welcome IB-introduced clients because they bring volume. Your account is managed by the broker, and the cashback provider only tracks your trading volume to calculate rebates.
If you already have an account with a broker, you may still be able to get cashback by closing and reopening through a provider—though this is not always necessary. Some providers allow you to link an existing account without switching brokers; check our guide on getting cashback on an existing account for details.
Where to Go Next
Now that you understand the financial advantage of using a cashback provider, you can compare current offers on our broker comparison page and see how much you could be missing with our switch calculator. If you are ready to start earning rebates, sign up today and begin lowering your trading costs on every lot.