What is a Forex Rebate? (Complete Guide)

Forex rebates are one of the simplest ways to lower your trading costs. Instead of changing the spread you see on the platform, a rebate refunds part of your cost after the trade settles. If you already trade actively—or plan to—understanding how rebate programs work can save you meaningful money every month.

Forex Rebates: The Short Definition

A forex rebate is a cash payout you receive based on your trading volume. It returns part of the spread or commission you already paid to open and close trades. Rebates are funded by the broker or by an affiliate provider who shares their commission with you. The more you trade, the larger your monthly payout—without changing your strategies or your platform.

How Forex Rebates Work

Every FX trade has a cost. In a standard account that cost is mostly the spread; in an ECN account, the cost is a tighter spread plus a per‑lot commission. A rebate program pays you back a small slice of that cost. You still see normal pricing while you trade; the rebate shows up later in your account or e‑wallet as cash.

Per‑Lot vs Per‑$1M Models

Most providers use one of two payout models:

Per‑Lot Rebates

You earn a fixed amount per standard lot traded (for example, $1–$4 per lot). If you trade 100 lots in a month and your rate is $2/lot, your rebate is $200.

Per‑$1M Notional Rebates

You earn a fixed amount per $1,000,000 of notional value traded (for example, $10–$25 per $1M). If you trade $8M notional in a month and your rate is $15 per $1M, your rebate is $120.

Under the hood, both models scale with volume. The best choice depends on your account type and the pairs you trade most.

ECN vs Standard Accounts

Standard accounts typically have wider spreads and no explicit commissions, while ECN accounts have tighter spreads plus a commission per lot. Rebates can work for both, but the headline rate is often different. ECN accounts may show a slightly lower rebate per lot because part of the commission is already as low as the broker can make it. In practice, your effective cost can still drop meaningfully on either account type.

Rebate Calculation Examples

Here are simple examples to visualize the math. These are illustrative only; always check your provider’s exact rates.

For more scenarios, see our detailed guide: rebate calculation examples.

MT4/MT5 Setup: Getting Your Rebates

1. Open an account through a rebate link. This tracks your trades so payouts can be credited correctly.
2. Verify and connect your platform. Log in to MT4/MT5 with your broker credentials as usual.
3. Trade normally. Your trading doesn’t change—only your end‑of‑period effective cost.
4. Receive payouts. Rebates are credited to your chosen method (wallet or bank) per the schedule.

Need a walkthrough? See our step‑by‑step MT4/MT5 rebates setup guide.

Payout Methods and Frequency

Most providers pay monthly; some pay weekly. Common methods include popular e‑wallets and bank transfer. Minimum payout thresholds sometimes apply. If you scalp or use EAs, confirm the terms—most programs allow them, but there are exceptions.

Pros, Cons, and Risks

Pros

• Reduces your effective trading costs without changing your strategy.
• Scales with volume—busier months earn larger payouts.
• Works with both standard and ECN accounts at many brokers.

Cons & Risks

• Can tempt some traders into overtrading—stick to your plan.
• Terms vary by broker and provider; always read the fine print.
• Payout schedules and minimums may delay small amounts.

Is It Legit? What to Check

Rebate programs are common in retail FX, but quality varies. To protect yourself, verify:

• Broker regulation in a respected jurisdiction.
• Provider reputation—transparent rates, clear terms, real support.
• Clean tracking—your account must be opened or linked correctly to receive credit.
• Payout history—look for consistent, on‑time payments.

Curious about a popular provider? Read our review: Is CashbackForex legit?

FAQs

Do rebates reduce spreads or commissions at the time of trade?

No. You trade at normal prices. The rebate is credited after the trade, so your effective cost per trade is lower when you look back over the period.

Are rebates available for all symbols?

It depends on the provider and broker. Major pairs usually qualify; exotics and CFDs may have different rates or exclusions.

Can I receive rebates if I already have a broker account?

Sometimes you can relink an existing account to a provider, but many brokers require that you open the account via the provider’s tracking link. Ask support before moving funds.

Do rebates work with scalping or EAs?

Often yes, subject to broker policy. If you run high‑frequency strategies, confirm eligibility to avoid surprises.

How do I pick a good broker for rebates?

Start with regulation, platform stability, and instruments, then compare rebate rates. Our guide to the best forex rebate brokers (2025) is a helpful shortcut.