TL;DR — A commission account charges a small fee per lot on top of a tight spread, while a spread-only account builds the broker's fee into a wider spread. For rebate earning, the model matters less than your total cost per lot: cashback is paid per lot traded, so it offsets a fixed commission more predictably than a floating spread, but a low all-in spread account can still win if you trade selectively.
What each model actually charges you
Every broker makes money somewhere. The question is whether that money is visible or hidden inside the quote.
On a commission model, you see two numbers: the raw spread (often close to zero on major pairs) and a separate commission charged per lot, usually quoted per side or round turn. On a spread-only model, you see one number: the spread, widened to include the broker's markup. Both approaches can be competitive. They just distribute the cost differently.
The practical difference shows up in three places: how transparent your cost is, how stable it is across sessions, and how it interacts with a per-lot rebate. For a broader definition of the terms involved, the trading glossary is a useful reference.
Why the commission vs spread choice matters for rebate earning
Cashback is calculated per lot traded, not as a percentage of your spread or commission. That single fact shapes everything.
If you trade a commission account, your cost per lot is largely fixed: raw spread plus a known commission. A rebate reduces that fixed number by a predictable amount. You can model it before you trade, which makes planning easier.
If you trade a spread-only account, your cost per lot floats. Spreads widen around news, at session rollover, and during thin liquidity. Your rebate stays roughly constant per lot while your cost moves. In quiet markets that can work in your favour; in volatile ones, the widened spread can swallow more than the rebate returns.
This is why the same rebate rate can feel generous on one account type and marginal on another. It is not the rebate that changed — it is the cost base it is offsetting.
Comparing the two models side by side
| Factor | Commission account | Spread-only account |
|---|---|---|
| Cost visibility | High — spread and fee shown separately | Lower — fee embedded in spread |
| Cost stability | Commission fixed, spread variable | Entire cost variable |
| Behaviour in news | Spread widens, commission unchanged | Spread widens more, no separate fee |
| Rebate interaction | Offsets a known fixed cost | Offsets a moving cost |
| Suits | Frequent, systematic traders | Selective or lower-frequency traders |
Neither column is automatically better. A trader who places twenty trades a week will usually find fixed costs easier to manage. A trader who takes three considered positions a week may not care about per-lot precision at all.
How to work out your true cost per lot
Before comparing rebate rates, calculate what a lot actually costs you on each account type. Use a quiet, liquid session for the test so you are not measuring news-driven spread.
- Open the instrument you trade most — for example, a major FX pair or XAUUSD.
- Note the current spread in pips or points, and convert it to account currency per standard lot.
- Add any commission charged per lot (check whether it is per side or round turn).
- Subtract the rebate you would earn per lot on that instrument.
- Repeat on the other account type and compare the two net figures.
That final net figure is the only number worth comparing. A headline rebate rate tells you nothing until it sits next to a cost base. The cashback calculator does this arithmetic for you if you would rather not build a spreadsheet.
In our view — traders over-index on rebate rate and under-index on cost base. A slightly lower rebate on a genuinely tight, stable account usually beats a headline rate on an account whose spread doubles whenever the market gets interesting.
Where each model tends to fit
Commission accounts tend to suit traders who treat execution as a process: scalpers, algorithmic and semi-systematic traders, and anyone running high lot volume where small per-lot differences compound. The fixed fee is easy to budget, and the rebate reduces a number that does not move.
Spread-only accounts tend to suit traders who take fewer, larger decisions, or who prefer a single simple cost line and no separate fee reconciliation. If your holding periods are longer, spread widening matters proportionally less, and the simplicity has real value.
Gold deserves its own note. XAUUSD spreads behave differently from major FX pairs — they can be wider in absolute terms and more sensitive to session timing. If gold is your main instrument, read the gold cashback guide before assuming FX logic carries over.
A practical way to decide
Run this sequence once, and you will have an answer that holds for months.
- Pull your last three months of statements and count lots traded per instrument.
- Calculate your average all-in cost per lot, including commission where charged.
- Compare that against the same instruments on the other account type, using normal-session spreads.
- Apply the rebate for each to get net cost per lot.
- Check whether the difference survives your worst spread week, not your best.
If the gap is small, choose on execution quality and platform fit instead. Cost is one input, not the whole decision. The broker comparison pages and the live rate board let you line up current rebate rates against account types before you commit.
One more thing worth knowing: you do not necessarily have to move brokers to earn cashback. In many cases an existing account can be linked, which removes the switching friction entirely. That process is explained in this guide.
Where to go next
Start by working out what a lot genuinely costs you today, then see what a rebate would do to that number. The switch calculator estimates how much cashback you may be leaving on the table at your current volume, and the how it works page explains how per-lot rebates are credited daily, win or lose, without Expaid ever holding your funds. When you are ready, you can create an account and check your own numbers.