What is a Forex Rebate (Cashback)?
A Forex rebate, often referred to as cashback, is a partial refund of the transaction costs (spreads or commissions) you pay to your broker when executing a trade. Typically, Introducing Brokers (IBs) or rebate providers receive a commission from the broker for your trading volume, and they share a portion of that commission back with you.
The best part about Forex rebates is that you get paid regardless of whether your trade wins or loses. Our free Forex Rebate Calculator helps you forecast exactly how much extra income you can generate just by conducting your normal trading activities.
Why Scalpers and Day Traders Need This
For swing traders who place one or two trades a week, rebates might seem like a small bonus. However, for day traders, scalpers, and algorithmic traders who execute dozens of standard lots daily, rebates can drastically alter their bottom line.
In many cases, the cashback accumulated over a month can cover the cost of VPS hosting, charting software, or even turn a break-even trading month into a profitable one.
How to Calculate Your Projected Rebates
Projecting your potential cashback is easy with our tool. Just input your expected trading activity:
Daily Trading Volume: Enter the average number of standard lots you trade per day.
Rebate Rate per Lot: Enter the cashback amount your broker or IB offers per standard lot (e.g., $3.00 per lot).
Trading Days per Month: Usually, there are about 20-22 trading days in a month for Forex, but you can adjust this if you trade Crypto on weekends.
The calculator will instantly multiply your inputs to provide a clear projection of your daily, weekly, monthly, and yearly cashback earnings.
Frequently Asked Questions (FAQ)
Do I get rebates on losing trades? Yes! Rebate programs are based entirely on your trading volume (turnover), not your trading performance. You earn the exact same rebate amount on a losing trade as you do on a winning trade.
Will joining a rebate program increase my spreads? It depends on the provider. Reputable cash-back providers simply share a portion of their IB commission with you without marking up your spreads or commissions. However, you should always verify with your specific broker that your trading conditions will remain exactly the same.