What is Lot Rebate?

A lot rebate is a fixed cash amount an Introducing Broker (IB) earns from a broker for every standard lot (100,000 units of the base currency) that a referred client trades. It is the most common way retail-brokerage partnerships pay IBs, because it ties earnings directly to client trading volume rather than to deposits or profits.

The rebate is quoted in USD per lot and is paid on both the opening and closing side of a round-turn trade, so "$6 per lot" typically means $6 for each complete buy-then-sell (or sell-then-buy) cycle. Rates vary by instrument: a major forex pair such as EUR/USD might pay $5–$8 per lot, while gold, indices, or crypto CFDs often pay a fraction of that or use a different volume unit entirely.

Key takeaways

Paid per standard lot (100,000 units), usually on a round-turn basis.
Independent of client profit or loss — driven purely by volume.
Rates differ sharply by instrument; forex majors pay the most.
Often tiered — higher monthly volume unlocks a higher rate.
Funded from the broker's spread/commission, not added onto the client.

Because it is a flat, per-unit figure, the lot rebate is easy to forecast. If your book of clients trades 400 standard lots in a month at a $6 rebate, you have earned $2,400 that month regardless of whether those clients ended up in profit or loss. This transparency is exactly why IBs use lot rebates as the primary yardstick when comparing broker programs.

Lot rebates sit inside the broker's own spread or commission, so they are funded from the broker's revenue on the trade, not charged on top of the client. That structure keeps the client's cost unchanged while still paying the partner, which is what makes the model scalable and compliant.

How it works

When a referred client executes a trade, the broker's back office attributes the volume to the IB's tracking account and credits the agreed per-lot amount to the IB's rebate balance. Volume is measured in lots: 1.00 standard lot equals 100,000 units, 0.10 is a mini lot, and 0.01 is a micro lot, so partial lots pay a proportional rebate.

Most brokers accrue rebates in real time inside an IB portal (often powered by MT4/MT5 plugins or a dedicated CRM) and settle the balance daily, weekly, or monthly to a wallet the IB can withdraw. The per-lot rate is frequently tiered: cross a monthly volume threshold and the rate steps up for all lots in that tier.

Client places a trade

A referred trader opens and later closes a position; the broker records the traded volume in lots.

Volume is attributed to the IB

The broker's CRM/plugin links the client's account to the IB tracking code and logs the round-turn volume.

Rebate accrues per lot

The agreed USD-per-lot rate is multiplied by the traded lots and added to the IB's rebate balance, often in real time.

Balance is settled

On the broker's schedule (daily/weekly/monthly), the accrued rebate is moved to a withdrawable IB wallet.

IB withdraws or reinvests

The IB withdraws to bank/e-wallet, or reinvests in acquisition and sub-IB rebates to grow volume.

Why it matters for partnership: Lot rebates give IBs a transparent, volume-based income they can forecast with simple math and compare across brokers. Because pay tracks trading activity rather than client outcomes, active traders keep an IB earning even in flat or losing months.

Formula

Total Earnings = Total Lots Traded by Clients × Lot Rebate Rate

Real World Example

An IB refers a group of active scalpers to an ECN broker such as IC Markets on a $6-per-lot program. The group trades 750 standard lots of EUR/USD in a month, producing 750 × $6 = $4,500 in rebates. Because IC Markets pays the rebate from its commission and not from client funds, the traders' costs are unchanged while the IB is paid on every round turn.

Lot rebate vs other IB pay models

Model	Pay basis	Best for
Lot Rebate	Fixed USD per lot of volume	High-frequency, active traders
RevShare	% of broker's spread revenue	Long-term, higher-cost clients
CPA	One-off fee per funded client	Mass acquisition, fast payback

Pro Tip

When comparing brokers, don't just chase the highest lot rebate — check the raw spread first, because a $15/lot rebate is worthless if wide spreads drive your clients away.

Common Pitfalls

Assuming the forex-major rate applies everywhere — index, crypto, and commodity CFDs usually pay a much smaller rebate, so a metals-heavy book earns far less than a per-lot headline suggests.

FAQ

How much is a typical lot rebate?

On forex majors it commonly ranges from about $2 to $8 per standard lot, though tiered programs and high-volume deals can go higher. Exotic pairs, indices, and crypto usually pay less.

Is a lot rebate paid on both opening and closing a trade?

Most brokers quote the rebate per round turn, meaning one open-and-close cycle earns the stated amount. Always confirm whether a broker quotes per side or per round turn.

Do I earn a lot rebate if my client loses money?

Yes. The rebate is based on traded volume, not the client's profit or loss, so you are paid whenever they trade. Avoid marketing this as risk-free — the client still bears full market risk.

How is a rebate calculated on a 0.10 lot trade?

Proportionally. A 0.10 lot (mini lot) at a $6 per-lot rate earns $0.60, and a 0.01 micro lot earns $0.06.

Does the lot rebate increase the cost my client pays?

No. Reputable programs fund the rebate from the broker's own spread or commission, so the client's cost is unchanged. Marking up the spread to fund rebates is a separate, disclosed arrangement.

Can lot rebate rates change after I sign up?

Yes, brokers can revise rates or tiers with notice under the partnership agreement. Keep a copy of your rate schedule and monitor your IB portal for changes.

Reviewed by the Revenika Editorial Desk Last updated August 5, 2026