What Is a Forex Rebate (Cashback)?
A forex rebate — also called forex cashback — is a refund you receive for every lot you trade, paid back automatically regardless of whether the trade was a winner or a loser. It works because brokers pay a revenue share to the intermediary (the IB or cashback platform) who referred you, and that revenue share is passed on to you as cashback.
The rebate is separate from your P&L. A $3.00/lot rebate on a losing trade still pays $3.00. This makes rebates one of the very few edges in forex trading that are guaranteed — they reduce your cost of trading on every single position.
How Forex Rebates Are Calculated
There are two main rebate structures:
A fixed USD amount per standard lot (100,000 units) traded — the most common structure. Example: $2.50 per lot means 100 lots/month = $250 back.
A percentage of the round-trip spread is returned. Example: 20% rebate on a 1.2-pip spread = 0.24 pips back per trade. Less common but useful for variable-spread accounts.
Monthly cashback = 80 × $3.50 = $280.00
Annual cashback = $3,360 — returned automatically, regardless of trade outcome.
Estimated Monthly Cashback by Trading Volume
The table below shows expected monthly rebate earnings at three common rate tiers. Use the calculator above to get the exact figure for your broker.
| Lots / month | At $2.50/lot | At $4.00/lot | At $6.00/lot | Annual (at $4.00) |
|---|---|---|---|---|
| 10 lots | $25 | $40 | $60 | $480 |
| 50 lots | $125 | $200 | $300 | $2,400 |
| 100 lots | $250 | $400 | $600 | $4,800 |
| 200 lots | $500 | $800 | $1,200 | $9,600 |
| 500 lots | $1,250 | $2,000 | $3,000 | $24,000 |
* Standard lots (100,000 units). Mini lots are typically 1/10th of the rate. Rates vary by broker and account type.
How Rebates Reduce Your Effective Trading Cost
Every trade has a cost — the spread and/or commission paid to the broker. A rebate directly offsets that cost. The formula for your effective spread after rebate:
Rebate: $3.50/lot → Net cost = $8.50/lot (29% reduction)
For scalpers and high-frequency traders, this reduction is especially significant — you are effectively trading on a tighter net spread without any change to the broker's quoted price.
Who Benefits Most from Forex Rebates?
Active day traders & scalpers
The more frequently you trade, the more lots accumulate and the more cashback you earn. A scalper placing 10–20 trades a day on standard lots can easily recover $500–$2,000+ per month in rebates alone.
Swing traders running larger positions
Even with low trade frequency, if your average position size is 5–10 lots, a $3.50/lot rebate adds up fast. 30 standard lots per week = $420 monthly cashback.
Prop firm traders
Many funded traders route through eligible brokers. Rebates on a $200k funded account can partially offset challenge fees or drawdown costs over time.
Anyone with an existing broker account
If your broker is on CashBak's list, you can link your existing account and start earning rebates on all future trades — there's no need to switch brokers or change your trading.
Rebate vs Tight Spread — Which Matters More?
A common question is whether to choose a broker with a tighter quoted spread or one that offers a higher rebate. The answer depends on your account type:
| Scenario | Quoted spread | Rebate | Net cost/lot |
|---|---|---|---|
| Standard account, no rebate | 1.2 pips ($12) | $0.00 | $12.00 |
| Standard account + rebate | 1.2 pips ($12) | $3.50 | $8.50 ✓ |
| ECN account, no rebate | 0.3 pips ($3) | $0.00 | $3.00 + commission |
| ECN account + rebate | 0.3 pips ($3) | $2.00 | $1.00 + commission ✓ |
The best outcome is an ECN or Raw account combined with a rebate — you get the tight spread and the cashback. Many brokers on CashBak offer both.
Forex Rebate FAQ
How much forex rebate can I earn per lot?
Rebates vary by broker and account type — typically between $0.50 and $7.00 per standard lot (100,000 units). High-volume brokers and ECN accounts tend to offer the highest rates. Use the calculator above to see the exact rate for your broker.
Are forex rebates worth it?
Yes — for any active trader. A trader doing 50 standard lots per month at $3.00 rebate earns $150 back automatically. Over a year that is $1,800 in recovered trading costs. The rebate does not change your execution, spread, or trading conditions in any way.
Do rebates affect trade execution or spreads?
No. Rebates are paid by the broker from their own revenue share with the IB (introducing broker). Your spreads, execution speed, and account conditions are identical whether you receive rebates or not. The rebate is purely additive.
How is a forex rebate calculated?
The most common structure is a fixed USD amount per standard lot traded — for example, $2.50/lot. Some brokers pay a percentage of the spread instead (e.g. 20% of the round-trip spread). Multiply your rebate rate by the number of lots you trade per month to get your expected monthly cashback.
When and how are rebates paid?
CashBak rebates are tracked automatically per trade and credited to your CashBak balance. You can withdraw to your broker account or bank at any time. There is no minimum lot threshold — every lot counts from the first one.
Which pairs and account types qualify for rebates?
Most brokers on CashBak pay rebates on all forex pairs across standard and ECN/Raw accounts. Some brokers also cover metals (gold/silver) and indices. The calculator shows the specific rate for each account type available through your chosen broker.