TL;DR — Scalpers and high-frequency traders generate high trading volumes, which means even small per-lot costs compound quickly into significant sums. By not claiming a per-lot rebate, they effectively leave money on the table with every trade. The solution is simple: use a cashback service like Expaid to recover a portion of the spread or commission on each lot.
How Trading Costs Compound with Volume
Every trade you place carries a cost, whether it's the spread, commission, or swap. For a scalper or high-frequency trader, these costs are multiplied by the sheer number of trades executed each day. Even a difference of a fraction of a pip per lot can add up to hundreds or thousands of dollars over a month, simply because of volume.
Consider this: if you trade 10 lots per day, five days a week, that's 200 lots a month. If you could recover even a small amount per lot, say $1 per lot (hypothetical example), that's $200 a month back in your pocket. Over a year, it's $2,400—money that would otherwise go to the broker.
Most traders focus on entry and exit points, but few pay attention to the cost structure of their trading. Yet for high-frequency strategies, costs can be the difference between profitability and consistent losses.
The Hidden Costs of High-Frequency Trading
High-frequency trading isn't just about paying the spread; it's about the cumulative effect of every tick. Each trade incurs a spread cost, which is the difference between the bid and ask price. For a scalper who enters and exits within seconds, that cost is paid multiple times per hour.
Additionally, some brokers charge a commission per lot, which directly reduces your net profit. Even if you have a winning strategy, high costs can erode your edge. The more you trade, the more you pay in absolute terms.
- Spread costs: The bid-ask spread is a direct cost per trade.
- Commissions: Per-lot commissions add up quickly.
- Swap rates: Overnight positions incur interest charges, though scalpers often avoid this.
- Slippage: In fast markets, you may get a worse price than expected.
These costs are often overlooked because they're small per trade. But as the saying goes, "look after the pennies, and the pounds will look after themselves."
Why Most Scalpers Ignore Rebates
Many traders are unaware that they can get a rebate on their trading volume. This is where an introducing broker (IB) comes in. When you sign up with a broker through an IB like Expaid, the broker pays the IB a commission based on your trading volume. Expaid then shares a portion of that commission with you as a cashback.
Despite this, many scalpers don't use such services because they either don't know about them or think the process is complicated. However, it's straightforward: you sign up, choose a broker from the rate board, and start trading. The rebate is calculated automatically and paid daily, win or lose.
Another reason is the misconception that rebates only apply to certain account types or that they might affect spreads. In reality, the rebate is paid on top of your existing trading conditions—it doesn't change your spreads or commissions. It's simply a refund of part of the cost.
How a Per-Lot Rebate Works in Practice
Imagine you're a scalper trading XAUUSD (gold). You open and close positions several times an hour, accumulating many lots by the end of the day. Each lot has a cost built into the spread. With Expaid, you receive a rebate per lot traded, which directly reduces your effective cost.
For example, if you trade 20 lots in a day and the rebate is $1 per lot (hypothetical), you'd get $20 back. That's $100 a week, $400 a month. For a high-frequency trader, this can be a substantial addition to your bottom line.
The best part? The rebate is paid regardless of whether your trade was profitable. It's a cost recovery, not a profit-sharing scheme. You don't have to do anything extra—just trade as you normally would.
To see how much you could recover, use our cashback calculator to estimate your potential rebates based on your trading volume.
Comparing Rebate Services: What to Look For
Not all rebate services are created equal. Some may have hidden conditions, delayed payments, or lower rates. When choosing a cashback provider, consider the following:
| Feature | What to Look For |
|---|---|
| Payment frequency | Daily payments are ideal for high-frequency traders. |
| Broker selection | A wide range of brokers ensures you can choose your preferred one. |
| No impact on trading conditions | Your spreads and commissions should remain unchanged. |
| Transparency | Clear calculation methods and no hidden fees. |
Expaid meets all these criteria: it pays daily, works with reputable brokers like Exness and XM, and never holds your funds. The rebate is paid directly to your trading account or wallet, so you have full control.
In our view — High-frequency traders who ignore rebates are essentially donating money to their brokers. The effort to set up a cashback service is minimal compared to the consistent savings it provides. It's one of the few "free lunches" in trading.
Common Misconceptions About Cashback
Some traders worry that using a cashback service might violate their broker's terms or affect their account status. This is unfounded—rebates are a standard practice in the industry, and brokers are accustomed to working with IBs. Your trading conditions remain exactly the same.
Another misconception is that you need to trade a minimum volume to qualify. While some services have minimum thresholds, Expaid offers rebates on every lot, regardless of size. Whether you trade 0.1 lots or 100 lots, you get a rebate per lot.
Finally, some think that rebates are only for losing traders. Not true. Rebates are a cost recovery, so they benefit profitable traders just as much—if not more—because they add to the bottom line.
Where to Go Next
If you're a scalper or high-frequency trader, don't leave money on the table. Check the rate board to see the latest rebate rates for your preferred broker, and use the calculator to estimate your monthly savings. Signing up takes minutes, and your rebates start accumulating immediately. To learn more about how cashback works, visit our how it works page. Start recovering your trading costs today.