Forex Rebates Explained: How Cashback on Your Trading Costs Works
Every forex trade costs money before it makes any. You pay the spread, often a commission per lot, and sometimes a swap for holding overnight. A forex rebate gives part of that cost back to you. For an active trader, that can be the difference between a strategy that breaks even and one that makes a small profit.
This guide explains how rebates work, how they are calculated, how they differ from deposit bonuses, and what to check before you sign up with a broker partner code.
What is a forex rebate?
When you open an account through a partner (also called an introducing broker or affiliate), the broker pays that partner a share of the trading costs you generate. A rebate program passes part of that share back to you.
You still pay the normal spread and commission on every trade. The rebate comes back afterwards, usually as cash credited to your account daily, weekly or monthly. Some programs, such as the Exness daily rebate, credit it automatically. Others need you to request it or track it through a rebate site.
How rebates are calculated
There are two common models.
1. A fixed amount per lot
You receive a set amount for every standard lot you trade, for example a few dollars per lot. A standard lot is 100,000 units of the base currency.
Example: if a program pays $3 per standard lot and you trade 40 lots a month, you get $120 back that month. The amount stays the same no matter how wide or tight the spread was.
2. A percentage of your trading cost
You receive a share of the spread and commission you paid, for example "up to 90%" of eligible trading cost.
Example: if your eligible trading cost on a busy day is $40 and the rebate is 90%, $36 comes back to you and your net cost for the day is $4. If the rebate is 50%, $20 comes back and your net cost is $20.
Percentage rebates are usually described with "up to", because the actual share can depend on the account type, the instrument and the broker's current terms. Always read how "eligible trading cost" is defined.
How much can a rebate save you?
Here is a simple example for a trader who pays an average of $10 in total trading cost per standard lot (spread plus commission):
| Lots per month | Monthly cost | Rebate at 50% | Rebate at 90% |
|---|---|---|---|
| 10 | $100 | $50 | $90 |
| 50 | $500 | $250 | $450 |
| 200 | $2,000 | $1,000 | $1,800 |
The more you trade, the more a rebate matters. For someone who trades a few lots a month, the saving is small. For a scalper or an active day trader, it can be one of the biggest numbers in the monthly P&L.
These are illustrative numbers. Your real cost per lot depends on the broker, the account type, the currency pair and market conditions.
Rebates vs deposit bonuses
Brokers attract new traders in two very different ways, and it is worth knowing which one you are getting.
| Rebate | Deposit bonus | |
|---|---|---|
| What you get | Part of your trading cost back | Extra credit added to your deposit, e.g. up to 100% |
| Can you withdraw it? | Usually yes, it is cash | Often no, or only after a trading volume requirement |
| Depends on | How much you trade | How much you deposit |
| Main benefit | Lowers your cost per trade | More margin to trade with |
| Main catch | Small if you trade little | Conditions, caps, and it can be removed if equity falls |
A rebate lowers what you pay on every trade. A deposit bonus, like the SuperCharged bonus HFM advertises at up to 100%, or XM's advertised up to 100% bonus, adds trading credit to your account. Bonus credit usually cannot be withdrawn directly, often has a maximum amount and conditions, and may be removed if you withdraw funds. It can increase your margin, but it does not make each trade cheaper.
Neither is better for everyone. If you trade often, a rebate tends to be worth more over time. If you trade small and want more margin, a bonus may appeal more, as long as you read the terms.
Which brokers offer what
On TradeSavings we keep guides for five brokers and what their partner codes give you:
- Exness: partner code l3fesph7, up to 90% of eligible trading cost back as a daily rebate, credited automatically. Exness partner code guide
- RoboForex: partner code qbm, an advertised daily rebate of up to 90%. RoboForex partner code guide
- HFM: partner code 30486574, linked to the SuperCharged bonus advertised at up to 100% of a qualifying deposit. HFM partner code guide
- XM: partner code 274PQ, with an advertised bonus of up to 100%. XM partner code guide
- IC Markets: referral code 89420, for raw-spread accounts with spreads from 0.0 pips plus commission. IC Markets guide
Offers depend on your country, the account type and each broker's current terms. Check them on the broker's website before you deposit.
What to check before you use a rebate or partner code
- Is it applied at registration? Most partner codes and rebate links must be used when you open the account. They often cannot be added to an existing account.
- Which accounts qualify? Some account types or instruments are excluded or pay a lower share.
- How is it paid? Daily, weekly or monthly, as withdrawable cash or as trading credit.
- Is the broker regulated where you live? A rebate is worth nothing if your funds are not safe. Check the broker's regulation and the entity your account will be opened with.
- Does the rebate change your trading? A rebate should lower the cost of the trading you already do. Trading more just to earn rebates usually costs more in losses than it returns.
The bottom line
A rebate does not change how good your trades are. It changes how much each trade costs. For active traders that cost is significant, and getting part of it back is one of the simplest improvements to a trading plan. Choose a well-regulated broker first, then use the rebate program it offers, not the other way round.
Frequently asked questions
- Are forex rebates legit?
- Yes. Rebates come from the commission a broker pays its partners for referred clients. A share of that is passed back to you. Use well-known brokers and official partner links or codes, and check the terms.
- Do rebates increase my spread?
- A rebate should not change the spread or commission you are charged. You pay the broker's normal costs and receive part of them back. If a program asks you to accept a wider spread, compare the net cost carefully.
- Can I get a rebate on an existing account?
- Usually not. Partner codes and rebate programs are normally linked when you open the account. Some brokers let you open an additional account under a partner, but this depends on their rules.
- Is a rebate taxable?
- That depends on the rules in your country. In many places it is treated as a reduction of trading costs or as income. Check with a local tax adviser.
- What is the difference between a rebate and cashback?
- In forex they usually mean the same thing: money returned to you based on the trades you place.
Trading forex and CFDs involves a high risk of losing money because of leverage, and these products may not be suitable for all investors. TradeSavings may earn a commission when you register through codes or links on this site, at no extra cost to you. This page is information, not financial advice.