Also known as:Automatic Cashback, Instant Rebate, Auto Cashback, Trading Rebate
What is Auto-Rebate?
An auto-rebate is a broker-provided system that automatically returns a set portion of an IB's earned commission to the referred trader, with no manual calculation or transfer by the IB. The partner portal computes the IB's rebate per trade and instantly credits the agreed cashback share to the client's account.
The mechanic sits on top of a standard IB rebate. The broker pays the IB a commission per lot or per spread; the auto-rebate rule then splits that commission, keeping the IB's share and pushing the client's share straight to the trading account or a linked wallet. Everything is automated and logged, so both sides see a transparent, per-trade cashback trail.
Key takeaways
Auto-rebate splits your IB commission and instantly credits the client's share.
It removes manual payouts and creates a transparent, per-trade cashback trail.
"Instant cashback on every trade" is a strong switch-and-retain hook.
Set the split against your costs — too generous and your margin disappears.
Most modern broker IB portals include the feature at no extra charge.
This turns cashback into a marketing hook rather than an admin burden. Instead of promising to "send money back later," an IB can advertise a concrete, automated benefit — for example "50% cashback on every trade, credited instantly" — which lowers a trader's effective trading cost and strongly incentivizes routing volume through the IB's link.
As a concrete example, an IB earns $10 per standard lot and sets a 50% auto-rebate. When a client trades one lot, the portal instantly keeps $5 for the IB and credits $5 to the client. Across a client trading 40 lots a month, that is $200 in automatic cashback to the trader and $200 retained by the IB — settled trade by trade with no invoices.
How it works
When a referred client trades, the broker attributes the trade to the IB and calculates the IB's gross rebate from the commission or spread markup. The auto-rebate rule configured in the partner portal then applies the agreed split: the IB's percentage stays in the IB wallet, and the client's percentage is credited to the trader's account.
Crediting can be near-instant per trade or batched (hourly, daily), depending on the broker's engine. The IB usually controls the shared percentage per client group, so different tiers of traders can receive different cashback rates. Because the flow is automated and logged, reconciliation is transparent and disputes are rare — but the split directly reduces the IB's net margin, so the rate must be set against marketing and operating costs.
1
Set your rebate split
In the partner portal, define the percentage of your commission to auto-return per client or client group.
2
Client trades under your link
Each executed trade is attributed to you and generates your gross per-lot or per-spread rebate.
3
System calculates the split
The portal separates your retained share from the client's cashback share automatically.
4
Cashback is credited
The client's share posts to their trading account or wallet, instantly or in scheduled batches.
5
Both sides reconcile
Transparent per-trade logs let you and the client verify every rebate without manual invoicing.
Why it matters for partnership: Auto-rebates are a powerful acquisition and retention tool. Automating cashback replaces manual payouts, builds trust through transparent per-trade credits, and gives IBs a concrete hook — "instant cashback on every trade" — that motivates clients to trade more and stay under your link.
An IB with an Exness or IC Markets-style raw-spread account earns $7 per standard lot and configures a 60% auto-rebate. A client trading 50 lots a month generates $350 in IB commission; the portal instantly credits $210 back to the trader as cashback and keeps $140 for the IB — automatically, trade by trade, with a full log both parties can audit.
Auto-Rebate vs Manual Rebate
Aspect
Auto-Rebate
Manual Rebate
Payout speed
Instant or batched per trade
Periodic, after IB calculates
Admin effort
None once configured
Ongoing per client
Transparency
Full per-trade log for both sides
Depends on IB record-keeping
Error / dispute risk
Low — automated
Higher — manual math and transfers
Scalability
Scales to large client bases
Breaks down as clients grow
Pro Tip
Tier your auto-rebate: offer a higher cashback rate to high-volume traders and a standard rate to smaller accounts, so your most valuable clients get the strongest reason to stay without you over-sharing on the long tail.
Common Pitfalls
Sharing too high a percentage to win clients: after marketing and operating costs your net per lot can turn negative, so aggressive cashback quietly makes an otherwise profitable client base unprofitable.
FAQ
Does the broker charge a fee for auto-rebates?
Most modern brokers include auto-rebate functionality free within their IB portal. The cost to you is the share of commission you choose to return, not a platform fee.
How fast is the cashback credited?
It depends on the broker's engine — some credit near-instantly per closed trade, others batch it hourly or daily. Check the portal's settlement schedule.
Can I set different rebate rates for different clients?
Usually yes. Most portals let you assign rates by client or client group, so you can tier cashback by trading volume or account type.
Does auto-rebate reduce my earnings?
Yes — the shared percentage comes directly out of your commission. Set the rate so your net per lot still covers marketing and operating costs.
Is cashback the same as a deposit bonus?
No. Cashback is a rebate on trading activity credited from your commission, while a deposit bonus is broker-funded credit on deposits, often with its own withdrawal conditions.
Can clients withdraw auto-rebate cashback?
Typically yes, since it is real credited funds rather than bonus credit, but withdrawal rules vary by broker — confirm the specific account terms.
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A practical framework for testing whether a broker's rebate reporting is genuinely trade-level and real-time, before you build a rebate business on top of it.
