Cashback rebates is a clever way that allows traders to lower the overall trading costs from their trading, and with their preferred FX broker, regardless if the position is closed in profit or loss.
In plain language, it’s a cashback program offered by us, linking your trading account to our rebates program and we pay you a cash rebate for each trade you take. This will result in lower trading costs for you and an improved win ratio. For example:
Your broker charges 1.5 pip spread on the EUR/USD pair and if the rebate rate is 0.5 pip, then your net spread will be only 1 pip.
Or:
Your broker charges a $6 trading commission for 1 lot EUR/USD and if the rebate rate is 20% off the commission, your net commission will be only $4.8.
Your potential earnings will highly depend on the rebates rate offered by the broker, the instruments your trade as well as the volume of your trades.
How does our cashback program work?
When you link a new or existing trading account to our rebates program, your broker will pay us part of their spread or commission profit for every trade you make as compensation for referring a customer to them.
We will then share the majority of our revenue with you for signing up with a broker via us. You will then receive part of the broker's spread, or commission profit, paid in cashback to your rebates profile or credited back to your trading account.
This cashback is paid regardless if you win or lose in a trade. Please note, rebate rates are calculated per traded lot and paid on traded monthly volume.
To find out the rebates rate when trading mini lots (0.01, 0.12, 0.50, etc.), then you should divide the rebate rate per the traded volume. For example, if a broker rebate rate is $1.25 per traded lot, then trading a 0.10 lot will give you $0.125 in rebates, and trading a 0.60 lot will give you $0.75 in rebates.
How much can you earn in cashback rebates?
It depends really. As noted above, it depends on the broker rebate rate, the traded instrument and the traded volume. But there's a great way to find out how much you can potentially earn in cashback rebates, right on our website. Our accurate forex rebate calculator.
Let's imagine that after some thought, you decide to get rebates, trading with Vantage Markets. The rebate rate for the Raw ECN is $1.60 per traded lot (even if closed with a loss). Next, open the menu, go to Tools and select Forex rebate calculator.
The calculator is very easy to use, you just need to fill in some fields to get accurate results.
- Instrument field: Select the traded instrument
- Deposit currency: Your account currency
- Rebate per lot: In our example, with Vantage Markets, is $160 per traded lot
- Lots traded: The total volume traded, for our example, we traded a total of 143.60 lots for the year 2022. The calculator also works with partial lots, from 0.01 to 0.99, and any volumes eligible for rebates.
Then we hit Calculate to get the result.
With the Vantage Markets' current rebate rate of $1.60 per traded lot, on the Raw ECN account, for a volume of 143.60 lots traded, the equivalent rebates are a cool $229.76 in cashback!