What is forex rebate?

Forex Rebate is a cashback program offered by rebate providers that allows forex traders to earn money back on their trades, regardless of whether the trade was a win or loss. It’s essentially a way to reduce trading costs like spreads and commissions.

Rebate are usually calculated based on the volume of your trading activity. The more you trade, the higher your rebate earnings. It’s important to note that forex rebates do not affect your trading conditions or profit potential in any way. They are an additional incentive provided on top of your regular trading returns. Overall, forex rebates can be a valuable tool for enhancing your trading performance and increasing your overall profitability in the forex market.

How Forex Rebate Work?

When you trade forex, your broker typically earns money from the spread or commission.
With a rebate program, a portion of that spread/commission is returned to you.
The rebate can be credited per lot traded, and it may be paid daily, weekly, or monthly.

Benefits

Reduces trading costs.
Can be earned on both profitable and losing trades.
Encourages higher trading volume (can be good or bad).

Example

Let’s say you’re trading with a broker that charges a spread of 2 pips on EUR/USD, and you’ve signed up for a rebate program that pays you $1.50 per standard lot traded.

Your Trade Details:

Trade size: 1 standard lot (100,000 units of the base currency)
Spread: 2 pips
Pip value for 1 lot of EUR/USD: $10
Cost of the trade: 2 pips x $10 = $20
Rebate per trade: $1.50

Net Effective Cost

You paid: $20 (in spread)
You got back: $1.50 (rebate)
Effective cost = $20 – $1.50 = $18.50

Even though you still pay the spread, the rebate reduces your overall trading cost.

Monthly Example

Assume you trade 100 standard lots per month.

Cost without rebate: 100 lots x $20 = $2,000
Rebate earned: 100 lots x $1.50 = $150
Effective trading cost = $1,850
You save $150/month, which adds up over time.

Is It Worth It?

Yes—if you’re a frequent trader, rebates can significantly reduce your costs over time. However, don’t choose a broker only based on rebate offers—always consider regulation, execution speed, customer support, and platform quality.