Forex rebates is a clever way allowing traders to earn extra cash from their closed trading positions, and with their preferred FX broker, regardless if the position is closed in profit or loss. Simply put, it’s a cashback program offered by a third-party provider, linked to the trading account, paying a cash rebate for each trade taken, resulting in a lower spread and improved win ratio. For example, if the rebate is 0.5 pip and the spread on the EUR/USD pair is 1.5 pips, then the net spread is only 1 pip.
By linking a new or existing trading account to a rebates program provider (IB broker), the FX broker will pay the rebates provider part of their spread or commission profit for every trade you make as compensation for referring a customer to them.
The rebates provider will then share the majority of its revenue with the trader, as a thank you for signing up via the IB broker. Traders will get part of the broker’s spread, or commission profit, paid in cashback, or credited back to their trading account. This cashback is paid regardless a trader wins or loses in a trade.
Our Forex Rebates Calculator can help traders to precisely calculate how much they can earn in cashback based on the rebate rate per traded lot and the total volume traded.