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