The FX Middle Man – An Effective Sales Tool for Brokers
Friday,14/09/2012|00:14GMTby
Adil Siddiqui
New websites dedicated to rewarding active traders are on the rise, is it a short-term spike or a genuine business model?
On-line Foreign Exchange trading has been gaining momentum over the years as investors' understanding of financial markets is evolving and access to financial products is readily available through the internet and mobile phone. Forex brokers have been spreading their message through many mediums including offline and online sources as they attempt to benefit from the promising growth in FX.
Traditionally, a banner advert was placed on a popular website and the broker was charged through a variety of options such as; cost per impression, click-through rate or once a live (funded) account was opened. Forex related words are heavily searched on google and the number of Forex related websites boomed. This has resulted in a congestion of information on the main FX portals, many of them have over 15 brokers all trying to fight for the most prominent positions. It seems the portals were losing their charm and traders weren't finding good content on their sites that help them in their trading.
Consequently, a new type of portals has arisen providing brokers with their new ‘bate’, enter the cash back or rebate portals.
The concept which started a few years back is based on the traditional introducing broker/ agent model where an entity (the IB) is rewarded for making introductions (clients) to brokers. In this model the cost the end-user pays (spread) is shared between the IB and the end-user, thus benefiting the client, the IB and the broker. The model is very useful for brokers because it is focused on active traders thus filtering out novice or one-off traders and generates healthy volumes.
The procedures are very simple, the trader trades with their appointed broker that the cash back/ rebate website has an IB relationship with. All rebates that are accounted for by the trader are input to the IB's Merchant Account. At the end of the month the IB passes back the set amount to the client.Tobias Dijkstra a trader from Netherlands trades FX regularly via a cashback site comments: "I have received my payment from them in my Paypal account on time". Apart from the rebate element traders are anxious about getting funds paid back as it shows the IB is genuine.
The rebate sites are an excellent enhancement to the traditional news sites as users are active traders, thus eliminating the information seekers. Furthermore the rebate sites have included many features like; live news, brokers review and forums thus providing the user useful information which keeps them hooked to the cash back website. The rebate sites can support a broker's sales strategy and provide a regular flow of clients. Owen Kerr, Director of Pepperstone an Australian FX broker says "Rebate providers are great advocates for our business, they help clients avoid the pitfalls of selecting a broker, including steering clients away from some of the more unscrupulous operators in the Retail FX marketplace". Traders in FX markets use websites, forums and review sites to assess brokers, Owen adds "Having a 3rd party endorse your firm gives clients confidence in their broker and generally results in higher deposits".
How much of a competition are these sites for FX brokers? There are two sides to this point; on the one hand rebate / cash back sites bring in the high-end clientele - active traders who are looking for brokers that are willing to share a piece of the cake, this could mean an influx of 5 to 10 live funded accounts per month.
On the other hand, brokers and rebate sites are both competing against the same client; consequently this has led to brokers offering clients rebates on their trades. With pricing already shrinking on major instruments like EUR USD and FTSE the key question is; how far brokers will stretch their offerings, rebates of >50% of the spread?
Nonetheless, rebate sites will continue to be popular as FX traders are always keeping up to date with the industry in general.
Alex Ivanov of FXRebateGurus, a popular rebate site, shares his experience of what attracts traders to rebate sites "We find that many clients would simply go with the highest rebate offered, even if it means they will pay more in transaction costs overall. So psychologically the client loves to get a great deal". In addition, the larger rebate portals have direct relationships with managers at many brokerages, this is useful for clients because if there are any issues or concerns the rebate portal acts as an intermediary to resolve the issue, an added service Alex’s team provides.
Rebate sites will need to ensure they have a selection of tools and resources for traders as the number of rebate sites grows and traders look for useful add-ons apart from the simple cash back offers, signal services have become very popular as they complement the new copy trade concept thus giving retail traders more of a reason to continue trading.
FX brokers should take the rebates sites with a pinch of salt as these relationships can change dramatically. The friend can easily turn to foe as rebate sites hold a handsome database of live, funded, traded – active accounts. In this context we can reflect on a famous quote by Edward Dahlberg "A strong foe is better than a weak friend". Advancements in technologies, (full front to back platforms), reduction is set-up and operational fees and consultancy services (regulations, company formation) for start-up brokers have made it easy for new firms looking to get established in the world’s most liquid asset class and who is positioned better than cash-back sites to make this step?
New websites dedicated to rewarding active traders are on the rise, is it a short-term spike or a genuine business model?
On-line Foreign Exchange trading has been gaining momentum over the years as investors' understanding of financial markets is evolving and access to financial products is readily available through the internet and mobile phone. Forex brokers have been spreading their message through many mediums including offline and online sources as they attempt to benefit from the promising growth in FX.
Traditionally, a banner advert was placed on a popular website and the broker was charged through a variety of options such as; cost per impression, click-through rate or once a live (funded) account was opened. Forex related words are heavily searched on google and the number of Forex related websites boomed. This has resulted in a congestion of information on the main FX portals, many of them have over 15 brokers all trying to fight for the most prominent positions. It seems the portals were losing their charm and traders weren't finding good content on their sites that help them in their trading.
Consequently, a new type of portals has arisen providing brokers with their new ‘bate’, enter the cash back or rebate portals.
The concept which started a few years back is based on the traditional introducing broker/ agent model where an entity (the IB) is rewarded for making introductions (clients) to brokers. In this model the cost the end-user pays (spread) is shared between the IB and the end-user, thus benefiting the client, the IB and the broker. The model is very useful for brokers because it is focused on active traders thus filtering out novice or one-off traders and generates healthy volumes.
The procedures are very simple, the trader trades with their appointed broker that the cash back/ rebate website has an IB relationship with. All rebates that are accounted for by the trader are input to the IB's Merchant Account. At the end of the month the IB passes back the set amount to the client.Tobias Dijkstra a trader from Netherlands trades FX regularly via a cashback site comments: "I have received my payment from them in my Paypal account on time". Apart from the rebate element traders are anxious about getting funds paid back as it shows the IB is genuine.
The rebate sites are an excellent enhancement to the traditional news sites as users are active traders, thus eliminating the information seekers. Furthermore the rebate sites have included many features like; live news, brokers review and forums thus providing the user useful information which keeps them hooked to the cash back website. The rebate sites can support a broker's sales strategy and provide a regular flow of clients. Owen Kerr, Director of Pepperstone an Australian FX broker says "Rebate providers are great advocates for our business, they help clients avoid the pitfalls of selecting a broker, including steering clients away from some of the more unscrupulous operators in the Retail FX marketplace". Traders in FX markets use websites, forums and review sites to assess brokers, Owen adds "Having a 3rd party endorse your firm gives clients confidence in their broker and generally results in higher deposits".
How much of a competition are these sites for FX brokers? There are two sides to this point; on the one hand rebate / cash back sites bring in the high-end clientele - active traders who are looking for brokers that are willing to share a piece of the cake, this could mean an influx of 5 to 10 live funded accounts per month.
On the other hand, brokers and rebate sites are both competing against the same client; consequently this has led to brokers offering clients rebates on their trades. With pricing already shrinking on major instruments like EUR USD and FTSE the key question is; how far brokers will stretch their offerings, rebates of >50% of the spread?
Nonetheless, rebate sites will continue to be popular as FX traders are always keeping up to date with the industry in general.
Alex Ivanov of FXRebateGurus, a popular rebate site, shares his experience of what attracts traders to rebate sites "We find that many clients would simply go with the highest rebate offered, even if it means they will pay more in transaction costs overall. So psychologically the client loves to get a great deal". In addition, the larger rebate portals have direct relationships with managers at many brokerages, this is useful for clients because if there are any issues or concerns the rebate portal acts as an intermediary to resolve the issue, an added service Alex’s team provides.
Rebate sites will need to ensure they have a selection of tools and resources for traders as the number of rebate sites grows and traders look for useful add-ons apart from the simple cash back offers, signal services have become very popular as they complement the new copy trade concept thus giving retail traders more of a reason to continue trading.
FX brokers should take the rebates sites with a pinch of salt as these relationships can change dramatically. The friend can easily turn to foe as rebate sites hold a handsome database of live, funded, traded – active accounts. In this context we can reflect on a famous quote by Edward Dahlberg "A strong foe is better than a weak friend". Advancements in technologies, (full front to back platforms), reduction is set-up and operational fees and consultancy services (regulations, company formation) for start-up brokers have made it easy for new firms looking to get established in the world’s most liquid asset class and who is positioned better than cash-back sites to make this step?
Retail Trading & Prop Firms in 2025: Five Defining Trends - And One Prediction for 2026
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
