Forex Rebate Calculator
A forex rebate (cashback) program pays you back a portion of the spread or commission your broker already charges, on every trade regardless of whether it wins or loses — this calculator turns your monthly trading volume into what that actually adds up to.
How do I calculate a forex rebate?
Rebate programs are typically quoted as a fixed dollar amount per standard lot traded, independent of which instrument you traded. Multiply that rate by your monthly lot volume for the monthly payout, then by 12 for a rough annual figure.
A trader averaging 50 standard lots a month at a $4.50-per-lot rebate rate:
That $2,700 a year comes back regardless of whether those 50 lots/month were net profitable — the rebate reduces the real cost of trading, it doesn't depend on the outcome of any individual trade.
Can cashback rebates actually affect my spreads or execution?
No — rebate providers are paid out of the commission the broker already collects, so a legitimate program has no effect on the spreads, execution speed, or fills you receive. The rebate is a separate cash payment layered on top of your normal trading costs, not a discount negotiated into the broker's own pricing.
Are forex rebates taxable?
In most jurisdictions, rebates are treated as a reduction in trading cost rather than taxable income, though tax treatment varies by country and by how the rebate provider classifies the payment — consult a tax professional for your specific situation. Rebates are typically paid out daily, weekly, or monthly depending on the provider.
A complete month, from lots to net cost
A rebate only makes sense next to the cost it offsets. Take a trader on EURUSD with an average spread of 1.2 pips, trading 50 lots a month, with a rebate of $4.50 per lot. One standard lot is worth $10.00 per pip.
Over a year the same pattern gives $7,200 in spread, $2,700 in rebate and a net cost of $4,500. The rebate did not make trading free; it made it 37.5% cheaper. The calculator's yearly figure is simply the monthly rebate multiplied by 12.
Per side or per round turn?
Programs differ in what they count as one lot. Some pay on the lots you open and close, so a single position earns the rate once. Others pay per side, which means opening and closing both earn the rate.
At $4.50 per side, 50 round-turn lots would earn 50 x 2 x $4.50 = $450 rather than $225. The calculator multiplies the lots you enter by the rate you enter, so type the rate that matches how you count lots.
Do not trade more to earn more
Suppose you open 10 extra lots only to collect rebate. The rebate on them is 10 x $4.50 = $45.00, but the spread on them is 10 x $12.00 = $120.00.
Rebates reduce a cost you were already going to pay. They are never a reason to take trades your strategy would not take, and they do not change how you should size a position for risk.
What different volumes add up to
The same $4.50 rate at different monthly volumes:
- 5 lots: $22.50 a month, $270.00 a year
- 20 lots: $90.00 a month, $1,080.00 a year
- 50 lots: $225.00 a month, $2,700.00 a year
- 200 lots: $900.00 a month, $10,800.00 a year
Rebates are normally quoted per standard lot of 100,000 units, so smaller trades earn a pro-rated amount: a 0.10-lot trade earns a tenth of the rate, which is $0.45.
Comparing a rebate with a tighter spread
Two ways to trade the same 50 lots a month on EURUSD. Program A pays a rebate of $4.50 per lot with a 1.2-pip spread. Broker B offers a 0.9-pip spread and no rebate.
Program A is cheaper by $1.50 a lot on these invented numbers. At 10 lots a month the difference would be only $15.00, so the right choice depends on volume as well as the quoted figures.
When a paid program breaks even
Some programs charge a fee for a higher tier. Suppose a $30 monthly fee raises the rate from $4.50 to $6.00 per lot.
Below 20 lots a month the upgrade loses money, above it the upgrade wins. Estimate your real volume from the last three months, not from your best month.
Small accounts and micro lots
Rebates scale with volume, and small accounts trade small volume. A trader on 0.05 lots with 40 trades a month trades 0.05 x 40 = 2 lots. At $4.50 that is $9.00 a month, or $108.00 a year.
That is still a real saving on costs, but it will not change the result of a small account, which depends on position sizing and risk first. Treat the rebate as a minor cost reduction and not as a source of income.
Check this against your program
Read your provider's terms for four things: whether the rate is per side or per round turn, whether it varies by instrument or account type, whether only closed trades count, and how and when it is paid. Rates for gold, indices and crypto often differ from forex. Pair this figure with the Win Rate calculator to see how cost affects expectancy, and read about cashback programs on Wikipedia.
Conclusion
Rebates lower the real cost of trading but don't turn a losing strategy profitable — they reduce losses and pad profits, nothing more. Combine this figure with your actual win rate and expectancy for the full picture of a strategy's real-world cost. See the Lot Size / Position Size calculator and a full explanation of how forex rebate programs work.
Frequently asked questions
Can rebates turn a losing strategy profitable?
No — rebates reduce the cost of trading and pad profits, but they are a small fraction of the spread/commission, not large enough on their own to offset a genuinely losing strategy.
How often are rebates actually paid out?
This varies by provider — daily, weekly, and monthly payout schedules are all common. Check your specific rebate program's terms.
Does the rebate depend on leverage or margin?
No. A rebate is paid on traded volume in lots, not on leverage or the margin you post. A larger position earns a larger rebate, but it also carries more risk, so size every trade from your risk and stop distance rather than from the rebate you would collect.
Do micro and mini lots earn a rebate?
Usually yes, pro-rated. If the rate is $4.50 per standard lot, a 0.10-lot trade earns about $0.45 and a 0.01-lot trade about $0.045. Providers differ on how they round very small amounts, so check the terms.
Is the rebate counted when I work out my win rate and expectancy?
It can be, and it is more accurate to include it. Subtract the rebate from the cost of each trade, or add it to the net result, so your average win and average loss reflect what you actually keep. The Win Rate calculator then gives a truer expectancy.