What is a forex rebate?
A forex rebate (also called forex cashback) is a partial refund of the trading costs you pay on each trade. Brokers pay introducing brokers and affiliates a share of the spread and commission generated by the clients they refer. A rebate service passes part of that payment back to you, usually per lot traded.
The rebate is funded from the broker's partner programme, not from your trading results. You still pay the normal spread and commission on every trade; the rebate is credited afterwards, typically daily, weekly or monthly. It reduces your net cost but does not change how your trades perform.
Rebates matter most for active traders. On a few lots a month the amount is small. On dozens or hundreds of lots, it can be a meaningful share of what you pay the broker.
Rebate formula
Cost per lot = Spread (pips) × Pip value per lot + Commission per lot
Monthly cost = Cost per lot × Lots per month
Monthly rebate = Monthly cost × Rebate % ÷ 100
Net cost = Monthly cost − Monthly rebate
Yearly rebate = Monthly rebate × 12
For a fixed per-lot rebate, the monthly rebate is simply Lots per month × Rebate per lot.
Commission here is the round-turn amount per standard lot (opening and closing). For EURUSD and other USD-quoted pairs, the pip value is $10 per standard lot.
Worked example: percentage rebate
You trade 20 standard lots a month on EURUSD. The average spread is 1.2 pips, the pip value is $10 per lot and the round-turn commission is $7 per lot. Your rebate is 25% of trading costs.
- Cost per lot = 1.2 × $10 + $7 = $19
- Monthly cost = $19 × 20 = $380
- Monthly rebate = $380 × 25% = $95
- Net monthly cost = $380 − $95 = $285
- Yearly rebate = $95 × 12 = $1,140
Worked example: fixed rebate per lot
Many rebate programmes quote a fixed amount instead, for example $2.50 per lot. On the same 20 lots a month:
- Monthly rebate = 20 × $2.50 = $50
- Yearly rebate = $50 × 12 = $600
Compare both formats with your own numbers. A fixed per-lot rebate is easy to predict; a percentage rebate grows if your spreads widen or you trade instruments with higher costs.
For gold, the same maths applies with gold's pip value. With 0.10 as a pip and $10 per pip per lot, a 2.5-pip spread and no commission gives a cost of $25 per lot. At 10 lots a month and a 20% rebate, you would get $50 a month back.
How to use this calculator
- Enter your average lots per month (standard lots; 10 mini lots = 1 lot).
- Enter your average spread in pips.
- Enter the pip value per lot in your account currency ($10 for EURUSD on a USD account). The pip value calculator gives it for any pair.
- Enter the commission per lot, round turn. Use 0 on commission-free accounts.
- Enter your rebate as a percentage, or switch to a fixed amount per lot.
- Read cost per lot, monthly cost, monthly rebate, net cost and yearly rebate.
Choosing between account types
Rebates change the maths when you compare account types. A commission account with tight spreads and a standard account with wider spreads may cost about the same per lot before rebates, but the rebate rate offered on each can differ. Put both accounts through the calculator with their own spread, commission and rebate figures and compare the net cost per lot.
Also check:
- Whether rebates are paid on all instruments or only on forex pairs.
- The payment schedule and minimum withdrawal.
- Whether rebates are paid as withdrawable cash or as trading credit.
- That the broker is properly regulated in your region; a rebate never makes up for weak client-fund protection.
Rebates and trading behaviour
A rebate lowers costs; it does not make an unprofitable strategy profitable. Avoid trading more just to earn cashback. Every extra lot still pays spread and commission, and the rebate only returns part of it. Keep sizing trades by risk with the lot size calculator, and treat the rebate as a small cost reduction on trades you would place anyway.
FAQ
How are forex rebates paid?
Brokers pay a share of spread and commission to their partners through partner or introducing-broker programmes. The rebate provider passes part of that to you, usually as cash credited to your trading account or a separate wallet.
Do rebates affect my spreads or execution?
Normally not. You trade on the same account conditions as any other client. The rebate is paid from the broker's partner budget after the trade.
Is a percentage or per-lot rebate better?
It depends on your trading. Per-lot is predictable. Percentage rebates scale with your actual costs, so they pay more if you trade wider-spread instruments.
Do I get rebates on losing trades?
Yes. Rebates are based on volume traded, not on profit or loss, so they apply to winning and losing trades alike.
Does lot size matter for rebates?
Rebates are usually quoted per standard lot and paid pro rata. A 0.1-lot trade earns one tenth of the per-lot rebate.
Final note
Rebates are a simple way to cut trading costs if you trade regularly. Know your real cost per lot first, then see how much a rebate actually returns before choosing an account.
Trading leveraged products carries a high risk of loss. Results are estimates; check your broker's contract specifications.