EA (Automated Trading) and Cashback: Prohibited Practices and Compatibility
Worried about whether you still get cashback while an EA is running, or whether it breaks the rules?
In short, whether EAs are allowed and what is prohibited is set by each broker's terms, and cashback is paid only on trades made within those terms.
This article focuses on what EA users should check in the terms. By the end, you will have a checklist to use before choosing an account.
In short: whether EAs are allowed is set by the broker's terms
- Check the broker's terms and trading policy to see whether you can use EAs
- Cashback is proportional to trading volume, and an EA's trades are generally counted as lots too
- If trades that violate the terms are found, trades or cashback may be cancelled
- Keep screenshots or replies to record what you confirmed
Check in the broker's terms whether EAs are allowed
In overseas FX, even brokers that allow EAs may set limits depending on the strategy. Conditions differ by broker and can be updated.
| What to check | Where to look | What to confirm |
|---|---|---|
| Use of EAs itself | Terms of business, account-type guides | Whether automated trading is permitted |
| Limits on trading strategies | Trading policy, FAQ | Whether prohibited strategies are stated clearly |
| Minimum holding time and number of trades | Account specifications, terms | Whether there are limits on short-term trading or trade counts |
| Cashback eligibility | Broker page, referrer's guidance | Whether any strategies are excluded |
If something is unclear, contact support and get an answer in writing. Saving chat history or emails lets you check later.
How lot volume relates to cashback
Cashback is calculated from trading volume, not profit or loss. EAs tend to make many trades a day, and their total lots tend to be high.
Estimate daily lots by multiplying the EA's lot setting by the number of fills. You can also total your actual lots from your MT4 or MT5 trade history.
- The cashback amount is determined as cashback per lot x lots traded
- As lots increase, spread and commission costs rise at the same rate
- Raising an EA's lot size to earn more cashback also widens the range of possible losses
Practices often prohibited, and the risk of breaking the terms
In general, many brokers may prohibit or restrict the following. How each is treated differs by broker's terms, so check the latest terms.
| Practice (general) | Example risk |
|---|---|
| Trading that exploits price delays (latency or arbitrage trading) | Trades cancelled, account restricted |
| Hedging across multiple accounts or with others to offset profit and loss | Profits cancelled, account suspended |
| Trading that abuses bonus conditions | Bonus and profits forfeited |
| Trading that targets system faults or feed delays | Fills cancelled, finding of a terms violation |
Trades judged to violate the terms may be excluded from cashback or cancelled. To check why cashback is not credited, see the other article as well.
Cautions on VPS and execution
- If a VPS stops or the connection drops, the EA may halt while positions stay open
- Around economic releases, spreads widen and slippage is more likely
- On commission accounts, total commission grows the more trades you make
- Running the same EA on multiple accounts widens the terms you need to check
- Before applying EA setting changes, confirm how they behave on a demo account or in a backtest
Load your MT4 or MT5 history to see your actual traded lots by instrument, including EA trades.
Total your lots from trade historyFAQ
Q.Do I get cashback when trading with an EA?
In many cases it is calculated from trading volume regardless of strategy, but conditions differ by the broker's terms. Check the terms on EA use and eligibility before opening an account.
Q.Are EAs ever prohibited in overseas FX?
Even brokers that allow EAs may prohibit certain strategies. Prohibited practices differ by broker, so check the terms of business and FAQ, and ask support about anything unclear.
Q.What happens to cashback if I break the terms?
It may be excluded or cancelled. The treatment depends on the broker's terms. The steps for checking when cashback is not credited are covered in another article.
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.
