Forex Glossary · Account

What is Rebate?

Definition

A per-lot cashback paid to the trader from the broker's IB commission — typically $2-$15 per standard lot.

Also called:cashbackIB rebateforex rebate

A forex rebate is a per-lot cashback paid to the trader from the broker's Introducing Broker (IB) commission. When you sign up to a broker through an IB / rebate aggregator like TradingEdge, the broker pays the IB a commission for every lot you trade. The IB returns a portion (the highest share in the market at TradingEdge, while most aggregators return only 30-70%) to you as a rebate.

The rebate does not come out of your spread. It is the IB share of the spread the broker would otherwise keep if you signed up directly. Your spread, slippage, and execution are identical with or without the IB routing — the only difference is who keeps the IB margin.

Standard rebates are $2-$15 per standard lot on Forex majors, paid daily, weekly, or monthly directly to your broker account. A trader executing 50 lots/month at $5/lot rebate earns $3,000/year in pure cost recovery.

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What is a forex rebate — full guide Calculate your rebate

More Account terms

Lot

A standardized position size in forex. 1 standard lot = 100,000 units of the base currency. Mini = 10,000. Micro = 1,000. Cent = 100.

Swap

The interest paid (or earned) for holding a forex position past the daily 17:00 ET rollover.

Prop Firm

A company that provides trading capital ($5k-$4M) to individuals who pass a paid evaluation called a "Challenge."

Profit Split

The share of trading profits a prop-firm-funded trader keeps — typically 80-90%, with the firm taking the remainder.

What is Rebate?

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More Account terms

Trade as usual. Get paid for every lot.