Trading Rebate (Cashback)
Costs & FeesA partial refund of spread or commission paid per lot traded, offered by brokers or introducing affiliates and based on volume, not results.
A trading rebate, often marketed as cashback, is a partial refund of the spread or commission paid on completed trades, returned per lot either to the client directly or through an affiliate who introduced the account. Rebate programmes are run by brokers themselves, usually as volume tiers for active clients, or by third-party services that share part of the introducing commission they receive. A rebate lowers the effective cost per lot, but it is paid on volume regardless of whether the trades were profitable, so it rewards turnover rather than results — one reason rebate arrangements can quietly encourage overtrading. Assessing one means comparing net cost after the rebate against a plain low-cost account.