Can You Combine Forex Cashback and Bonuses? Differences and How to Choose
Wondering whether you can get both a bonus and cashback?
Whether they can be combined is set by the broker's terms. They also differ in nature: a bonus is generally margin, while cashback is generally withdrawable account balance.
This article explains the differences and how to think about them, so you can choose what fits your trading volume.
In short: combining depends on the broker's terms
- Whether you can combine them depends on the broker's bonus terms and referral conditions
- A bonus can be used as margin but is generally not withdrawable
- Cashback is generally added to account balance and is withdrawable
- Which is better depends on your trading volume and the bonus conditions
How cashback and bonuses differ in nature
| Item | Bonus | Cashback |
|---|---|---|
| Basis for receiving | Deposit amount or campaign conditions | Trading volume (lots) |
| Treatment in the account | Often margin (credit) | Generally added to account balance |
| Withdrawal | The bonus itself is generally not withdrawable | Generally withdrawable |
| Conditions | May expire upon withdrawal | Requires referral and an eligible account |
A bonus is attractive because it increases your margin and gives you more room to trade. However, it comes with withdrawal and expiry conditions, and profits may be restricted in some cases.
Cashback returns cash based on trading volume. It is easiest to think of it as a real reduction in your trading costs.
What to check about combining
Whether they can be combined is decided by both the broker's bonus terms and the conditions for referrals through a partner. Depending on the conditions, one of them may not apply.
- Do the broker's bonus terms say how referred accounts are treated?
- Is the bonus account an account type eligible for cashback?
- What are the bonus's withdrawal and expiry conditions?
- Some brokers do not offer bonuses at all
Which is better depends on trading volume
If your trading volume is small, a bonus may be better. The more you trade, the greater the effect of cashback, which is proportional to lots.
However, bonuses come with withdrawal and expiry conditions, so they cannot be compared uniformly. Decide with the details of the conditions in mind.
- Low-volume traders: the extra margin from a bonus is relatively valuable
- High-volume traders: cashback, proportional to lots, adds up
- In both cases, check withdrawal and expiry conditions in the broker's terms
How to think about the cashback calculation
Cashback is calculated as: cashback per lot × number of lots traded. The amount per lot differs by broker and account type.
- 1
Estimate your monthly lots
Check your average monthly lots from your trading history.
- 2
Multiply by the cashback per lot
Use the amounts that will be posted on each broker page at launch.
- 3
Compare with the bonus conditions
Compare not only the bonus amount but also its withdrawal and expiry conditions.
Estimate your cashback from the number of lots you trade.
Estimate your cashbackFAQ
Q.Can I combine overseas FX cashback and bonuses?
It depends on the broker's terms. Some brokers allow it and some do not. XB will post whether each broker allows combining on each broker page at launch.
Q.Which is better, a bonus or cashback?
It depends on your trading volume and the bonus conditions. Cashback tends to be more effective with high volume, while a bonus may be better with low volume.
Q.Can I withdraw cashback?
It is generally added to your account balance and can be withdrawn. However, withdrawal conditions differ by broker, so please check the official terms.
This article is for information purposes only and is not investment advice. Conditions may change, so please check each broker's official page for the latest information. Offshore FX and CFD trading carries a risk of losses exceeding your principal.
