Passive Income In Active Trading: The Cashback Paradox

I started trading from a very young age. By now, reading has become a part of me. And, if I have to tell you one thing about traders, it’s this. 

Every trader strives for a stable income. However, trading in financial markets always requires attention, time, and energy. 

Each transaction is work, albeit intellectual. That is why the combination of active trading and passive earnings seems like a paradox. 

You can use the capabilities of the site https://fxcash.net/en/ and turn regular transactions into a source of passive income as a trader. 

FxCash has been operating on the market since 2009 and, during this time, has become one of the most reliable spread refund services. 

The platform connects traders to more than 50 licensed brokers. Payments are credited almost instantly — often a couple of seconds after the transaction is closed.

For one lot, you can return up to $35, and withdrawal is available through popular payment systems. 

The Internet platform offers transparent statistics for each transaction. In addition, you get a rating from brokers that allows you to control your income down to the most minor details.

Is Cashback A Passive Income As A Trader? 

Trading requires active participation, but cashback does not. That is why experts refer to the return of part of the spread as passive income. 

The money comes regardless of the outcome of the transaction. A portion of the commission is returned, even if the trade ends with a zero result or a small minus.

This format is similar to a hidden surcharge for each open position. The trader’s “surcharge” is determined by the extent of his activity. 

All you need to do is connect the account once, and then you can continue trading as usual.

You should understand that cashback is not a bonus or a gift from brokers. This concept implies the return of your expenses. This is what turns any strategy into a more profitable one.

Who Benefits Most From Cashback?

Some traders get more from spread rebates than others. It all depends on your trading style and activity level. 

The more trades you make, the higher your final rebate will be. There are styles where cashback can become a truly passive source of income.

Among the most popular and widespread strategies where cashback reveals the maximum potential are the following:

• scalping with dozens of trades;
• automatic trading with advisors;
• Intraday trading on the news;
• high-frequency trading on volatility;
• arbitrage between different brokers;
• trading during periods of high activity;
• frequent entries and exits from the market.

For active traders, even small amounts of rebates can add up to noticeable capital support. 

The main advantage is that you do not need to change your usual trading style and adapt to new rules.

What Are Stronger Ways Of Passive Income As A Trader?

Cashback is not inherently passive income for a trader in the traditional sense. While cashback rewards are a form of income that requires minimal effort to obtain, they are typically tied to spending habits and not trading activity. 

Passive Income as a trader would involve earning from investments or trading strategies with minimal ongoing effort, such as:

1. Dividends

I personally approve of this one. Dividends are parts of a company’s profits that some companies share with their shareholders as a way to say “thank you for investing.” 

Stocks or funds that pay dividends provide investors with regular cash returns, typically on a yearly, quarterly, or monthly basis. 

This income can add to any profits made from the increase in share price. Companies’ boards of directors decide on dividends, 

which are usually shown as a percentage of the share price, known as the dividend yield. There is no guarantee that a company will pay its dividend. 

However, some companies, called “dividend aristocrats,” have a long history of consistently paying and increasing their dividends. Investing in dividend stocks can be risky since it involves owning shares.

2. Automated Trading Systems

To explain simply, I will say that Automated trading systems, also known as algorithmic or algo trading, can provide a form of passive income for traders.

It does so by allowing them to execute trades automatically based on predefined strategies.

Therefore, it reduces the need for constant manual monitoring and intervention. This allows traders to potentially generate income even while they are not actively engaged in the trading process. 

3. Money Market Funds

A money market fund is similar to other mutual funds. It gathers money from investors to buy a mix of investments. 

Instead of investing in stocks or long-term bonds, a money market fund invests in low-risk, short-term debt, such as US Treasury bills. 

The primary goals are to safeguard your savings and provide you with easy access to your money. These funds usually pay interest through monthly dividend payments.

4. Bonds

Investing in bonds means you are lending money to companies or governments. They promise to pay you back with interest. 

Bonds are generally considered safer than stocks and have ratings to help you understand the risk that the issuer might not pay you back.

Bonds can last from a few months to many years. When choosing a bond, think about how much money it can earn and the risk of the issuer defaulting. 

Also, consider the bond’s duration. If you hold a bond until it matures, you get your original amount back plus interest. 

However, if you sell the bond before it matures, you may incur a loss.

5. Bond Funds

Bond funds make it easy to invest in bonds without the need to research and purchase individual ones. 

They often include a wide variety of bonds, giving you instant diversification. 

Each fund may cover the overall bond market or focus on specific types, like a short-term Treasury fund. 

When you invest in a bond fund, you usually receive monthly payments, similar to dividends. The potential returns and risks of a bond fund depend on what types of bonds it invests in.

Is Cashback A Legit Form Of Passive Income As A Trader?

Getting cashback is good, but using it effectively is even better. Many traders withdraw cashback immediately, while others reinvest it by increasing their trading volume. The second approach helps to earn more on the same trades.

Cashback is also helpful in compensating for trading costs. Even if some of the trades turn out to be unprofitable, the return of the commission partially smooths out the negative result. Thus, traders gain an additional “safety cushion”.

FxCash makes this process transparent and convenient. Each trader can easily control exactly how much they have managed to save thanks to instant payments and complete reporting. You actively trade and passively earn. This is the very paradox of cashback.