TL;DR — A forex rebate is a fixed amount you get back for every lot you trade, added up across all your positions regardless of outcome. Because it is tied to volume, an active trader can claw back a large share of their spread costs over a month. The rebate is calculated as your per-lot rate multiplied by the lots you trade, and it is paid on winners and losers alike.

Rebate, cashback, kickback — same idea

“Forex rebate” and “forex cashback” describe the same thing: money returned to you based on your trading volume. It originates from the commission your broker pays to introducing partners, and a rebate service passes most of it back to you. If you want the full background on where that money comes from, read what forex cashback is and how it works. This article focuses on the numbers — how a rebate is calculated and how to get the most from it.

How a rebate is calculated

The formula is refreshingly simple:

Rebate = per-lot rate × lots traded

The per-lot rate is a fixed dollar figure set for each broker, instrument and account type. One standard lot is 100,000 units of the base currency, or 100 ounces for gold. So if your rate is a few dollars per lot and you trade dozens of lots a month, the rebate adds up quickly — and it is entirely independent of whether those trades made or lost money.

A worked example

Say you trade 50 lots of gold and major pairs in a month, and your blended rebate works out to roughly a few dollars per lot. That is a month of rebate income sitting on top of your trading results — cash you would simply not have received without a rebate in place. Trade more, and it scales linearly. To put your own numbers in, use the rebate calculator; it shows your estimate per day, per month, per year and over three years.

Why rebates lower your effective cost per trade

Every trade you open pays a spread or commission — that is your cost of doing business. A rebate refunds part of that cost after the fact. If your round-turn cost on a pair is, say, the spread equivalent of a few dollars per lot, and your rebate returns a meaningful slice of that, your effective cost per lot drops. For a high-frequency or high-volume trader, shaving cost on every single trade is one of the few edges available that does not require being right more often.

How to maximise your rebate

  • Trade the higher-rebate instruments. Gold (XAUUSD) and major forex pairs usually carry the strongest per-lot rates. Check the live figures on the rate board.
  • Pick the right broker for your style. Rates vary by broker and account type; compare them side by side on the broker comparison pages before you commit.
  • Consolidate your volume. Trading through one linked account keeps all your volume earning a rebate rather than splitting it across accounts that pay nothing.
  • Do not change how you trade to chase rebates. A rebate is a cost reducer, not a reason to over-trade. The right mindset is process first — see process over profit.

Getting your rebate set up

Link a trading account, keep trading, and Expaid reconciles your volume and pays the rebate weekly into your account. If you are already trading elsewhere without one, the switch & save calculator shows the yearly rebate your broker is currently keeping instead of you.