Rebate Calculator

How Forex Rebates Work

Forex rebates are cashback payments from introducing brokers (IBs) based on your trading volume. For every standard lot you trade, the IB pays you a fixed amount - typically $2 to $7 per lot - regardless of whether the trade wins or loses. This effectively lowers your trading costs.

Trading 1 lot with a $5/lot rebate earns $5 per trade. At 50 trades per month, that's $250/month or $3,000/year in passive cashback.

How Rebates Lower Your Effective Spread

Rebates reduce your net trading cost by offsetting the spread. On EUR/USD with $10 pip value, a $5 rebate saves 0.5 pips per trade. If your broker's spread is 1.2 pips, your effective spread after rebate is 0.7 pips - a significant reduction.

Comparing Rebates vs Commission-Free Accounts

Commission-free accounts have wider spreads - typically 1.0-1.5 pips on EUR/USD. An ECN account might charge $7 round-turn plus a 0.2 pip raw spread, but with a $5/lot rebate, your net cost is $2 + 0.2 pips = effectively 0.4 pips. Use the commission calculator to compare total costs including rebates.

Frequently Asked Questions

What is a forex rebate?

A forex rebate is cashback paid by introducing brokers for every lot traded. If your broker partner offers $5/lot and you trade 50 lots/month, you earn $250/month regardless of whether trades win or lose.

How do rebates reduce trading costs?

Rebates lower your effective spread. A $5/lot rebate on EUR/USD ($10/pip) saves 0.5 pips per trade. If your spread is 1.2 pips, effective spread after rebate is 0.7 pips.

Are forex rebates legal?

Yes, rebates are legal in most jurisdictions and standard practice. They're paid by introducing brokers who split their commission with traders. Check with your broker before joining through a rebate provider.

How much can I earn from forex rebates?

At $3-7/lot and 1-2 lots per trade with 50-100 trades/month, rebates range from $150-700/month. High-volume traders can earn thousands monthly. The calculator projects earnings based on your volume.