What is Rebate?

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1. Forex rebates are a portion of the transaction cost that is paid back to the client on each trade, resulting in a lower spread and improved win ratio. For Example, If your EURUSD spread is 1.0, 1 Lots EURUSD, Cost 10 USD. We can rebate you back 3.5 USD for 1 lot EURUSD.  

2. The 10 USD for transaction cost is the income of your brokers. Most of the brokers get income from the spread and the commission. Normally, brokers will not return those funds to Trader themselves. Traders must apply to open an account through IB (Introducing broker).

3. Therefore, it's not strange that some people traded for a long time but never knew that they have cashback/rebate.

4. If Trader opening an account through a broker directly, Brokers will not pay rebate to anyone. That means trader is paying 100% of the commission or spread cost to their brokers.

5. For example, Exness broker also does not pay rebates directly to traders/clients. But there is a system to pay rebate to clients via IB, which motivate IB and reduce the cost for traders. If the people open account with IB, you will be able to receive rebates from brokers. The broker is also pleased that IB can find many clients. Simply say Investors (traders), IBs and brokers all three can get benefit.