Also known as:IB Commission, Volume Rebate, Trading Rebate, Cashback
What is Rebate?
A rebate is the slice of a client's trading cost — the spread or the commission — that a broker pays back to the Introducing Broker (IB) who referred that client. It is earned per trade, on volume, and the IB can keep it in full or pass part of it to the trader as cashback.
Rebates are the defining revenue mechanism of the classic IB model, and they contrast sharply with a one-off CPA (Cost Per Acquisition) bounty. Instead of a single fixed payment when a trader deposits, the rebate pays every time that trader opens and closes a position, for as long as they keep trading. Rebates are usually quoted in one of two ways: a fixed cash amount per lot (for example, $7 per standard 100,000-unit lot on EUR/USD) or a share of the spread/commission (for example, 30% of the spread the broker captures).
Key takeaways
Rebates pay per trade on volume — recurring, not one-off like CPA.
Quoted as fixed $/lot or as a % of spread or commission.
Income compounds as your active book grows, even with zero new deposits.
Sharing rebate back as cashback lifts retention and client lifetime.
Slow to build early; rewards patience and an active trading base.
A worked example makes the compounding obvious. Suppose a broker pays you $6 per standard lot. One active client trading 20 lots a month generates $120 for you monthly. Grow that to 50 similar clients and you are earning $6,000 a month — $72,000 a year — without a single new deposit, purely because your existing book keeps trading. That recurring, volume-linked cash flow is why rebates dominate serious IB economics.
The trade-off is patience. A rebate book starts small and builds slowly, whereas CPA pays large and fast up front. Most established IBs blend the two or negotiate a hybrid, but the rebate is what turns a referral business into a compounding annuity rather than a series of one-time sales.
How it works
When a referred client trades, the broker records the volume under the IB's tracking code. The cost the client pays — spread markup or per-lot commission — is split, and the IB's agreed portion accrues in the partner portal, usually in near real time.
Rebates accrue per closed lot and are typically aggregated daily or monthly, then paid to the IB's wallet or bank on the broker's payout cycle. The IB decides how much of that rebate to keep versus rebate onward to the trader (cashback) or to sub-IBs beneath them, which is where multi-tier rebate structures come in.
1
Client trades under your code
A trader you referred opens and closes positions; the broker attributes the executed volume to your IB account via a tracking link or account tag.
2
Cost is calculated per lot
The broker measures the spread or commission collected on that volume — for example $6 of markup on one standard lot.
3
Your rebate accrues
Your agreed share (a fixed $/lot or a percentage of spread) posts to your partner-portal balance, often within minutes to 24 hours.
4
You split or keep it
You choose to retain the full rebate, pass cashback to the trader, or distribute a cut to sub-IBs in your network.
5
Payout on the broker's cycle
Accrued rebates are withdrawn to your wallet or bank daily, weekly, or monthly, subject to any minimum threshold.
Why it matters for partnership: Rebates are the compounding engine of the IB model: because they pay on every trade, your income grows recurringly as your active book grows, and sharing part back as cashback boosts client retention and lifetime value.
Formula
Monthly Rebate = Lots Traded × Rebate per Lot
Real World Example
IC Markets' rebate program pays IBs up to roughly $6.50 per standard lot on Raw Spread accounts. An IB with 40 active clients each trading 15 lots a month books 600 lots × $6.50 = $3,900 monthly — recurring income that keeps flowing as long as the book stays active, with no dependence on new deposits.
Rebate vs CPA
Model
When paid
Frequency
Best for
Rebate (RevShare)
On every trade
Recurring, per lot
Long-term active books
CPA
On qualifying deposit/trade
One-off per client
High-volume lead flow, fast cash
Pro Tip
Reinvest early rebate earnings into premium tools or signals you give clients for free — it extends their trading longevity and compounds your per-trade income.
Common Pitfalls
Assuming rebates apply to every account type — brokers often pay zero or minimal rebates on raw/zero-spread institutional accounts, quietly gutting your expected income.
FAQ
How much is a typical forex rebate per lot?
Most brokers pay IBs between $2 and $10 per standard (100,000-unit) lot, depending on the instrument, account type, and your negotiated tier. Percentage-of-spread deals commonly land in the 20–40% range.
Is a rebate the same as CPA?
No. A rebate pays repeatedly on trading volume, while CPA pays a single fixed bounty when a referred client qualifies. Rebate is recurring; CPA is one-off.
Do I pay the rebate, or does the broker?
The broker pays it out of the spread or commission the client already pays. It is not an extra charge to the trader — it is a share of existing trading cost redirected to you.
Can I give my rebate back to traders?
Yes. Passing part of your rebate to clients as cashback is a common retention tactic; many brokers automate this split inside the partner portal.
When do I get paid my rebates?
Accrual is usually near real time, but withdrawals follow the broker's cycle — commonly daily, weekly, or monthly — often subject to a minimum balance threshold.
Why did my rebate come out lower than expected?
Common causes are clients trading on raw/zero-spread accounts that pay reduced rebates, lower-volume months, or instruments with a smaller per-lot rate than majors like EUR/USD.
A practical ranking of partner program types and evaluation criteria for a brand-new IB with no existing audience, focused on approval odds, payout structure, and realistic …
A practical playbook for turning a solo IB business into a multi-tier network: how to recruit sub-IBs, structure override commissions, and manage a partner org without …
A practical breakdown of how signal and copy-trading providers monetize through broker revenue share, member subscriptions, or both — and how to structure a hybrid model …
How to evaluate a broker's copy-trading architecture, execution quality, and compliance posture so your followers' results actually match your strategy.
For a signal seller, the broker is the product. Here is how to choose one whose execution, regulation, and copy infrastructure keep your track record and …
A comparison of instant, weekly, and monthly rebate payout cadences for forex IBs, and how to pick the schedule that matches your traders' expectations and your …
