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What is a
Forex
Rebates Calculator?

Forex rebates is a clever way allowing traders to earn extra cash from their closed trading positions, and with their preferred FX broker, regardless if the position is closed in profit or loss. Simply put, it’s a cashback program offered by a third-party provider, linked to the trading account, paying a cash rebate for each trade taken, resulting in a lower spread and improved win ratio. For example, if the rebate is 0.5 pip and the spread on the EUR/USD pair is 1.5 pips, then the net spread is only 1 pip.

By linking a new or existing trading account to a rebates program provider (IB broker), the FX broker will pay the rebates provider part of their spread or commission profit for every trade you make as compensation for referring a customer to them.

The rebates provider will then share the majority of its revenue with the trader, as a thank you for signing up via the IB broker. Traders will get part of the broker’s spread, or commission profit, paid in cashback, or credited back to their trading account. This cashback is paid regardless a trader wins or loses in a trade.

Our Forex Rebates Calculator can help traders to precisely calculate how much they can earn in cashback based on the rebate rate per traded lot and the total volume traded.

Currency pair: The rebates result can vary depending on the selected cross, as it takes into account the pair’s market price. Traders can select from one of the Major Forex pairs, Minors, from the most popular cryptocurrencies versus the USD (BTC, ETH, LTC, SLM and XRP), or Gold/Silver against the USD. Let’s choose, for example, the EUR/GBP.

Deposit currency: On this field traders simply select their trading account deposit currency, so the final calculation will show the results already converted to the trader’s account base currency. We choose the GBP as the deposit currency, for our example.

Rebate per lot: The crucial part of this calculator. Most FX brokers will pay the rebate as part of their spread, in pips. Other brokers, mainly ECN environment trading brokers, with commissions per traded lot, will prefer to offer a deduction of the commission cost.

For example, an FX broker charging 6 USD commission per traded lot, might pay in cashback 1 USD per lot traded, taken from the original commission cost. But the vast majority of the FX brokers simply pay the cashback from their spread. So, for this example, we will use the hypothetical rebate per lot value of half a pip (0.5 pip).

Lots traded: Forex rebates are paid on the volume, the lots or units traded, regardless if a position was closed in profit or loss. In this field there’s the option of calculating the rebates value based on the lots traded or the units traded. Let’s choose, on our example, a total volume of 10 lots traded.

Then we hit the “Calculate” button.

The results: The rebates calculator also uses a market price live feed with the current interbank rate (in a 5-digit format) for the crosses that don’t use the account base currency (for example AUD/CAD) to convert the rebates value into the account base currency.

So, the rebate value for the EUR/GBP cross, with a total volume of 10 traded lots and with a rebate rate of 0.5 pip, on a trading account in GBP, is currently £50. Traders should remember that rebate values are always paid, independently if the traded volume was closed in profit or with a loss.

You might also find our What are Forex Rebates article useful. It can help you to understand how do Forex rebates programs work, how the rebates are paid, what are the benefits of joining a Forex rebates program and some of the best providers to choose from.

How to Use the Forex Rebates Calculator?

Risk Warning : Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. 

Risk Warning:
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Lepanto Financial Advisers Limited is the holding company of Ultimate Pinnacle Limited. (Address: Fifth Floor, Suite 23, 63/66 Hatton Garden, London, England, EC1N 8LE). All services and products accessible through the site www.upfxtrade.com are provided by Ultimate Pinnacle Limited with the registered address Suite 305, Griffith Corporate Center P.O Box 1510, Beachmont Kingstown St.Vincent & the Grenadines.

Ultimate Pinnacle Limited is a limited liability company established in Belize as an operating subsidiary within the Lepanto Group of companies (collectively “Ultimate Pinnacle”) under Registration No. 173474 and having its registered address at No. 1 Corner of Hutson Street and Marine Parade, Belize City, Belize.

Lepanto Financial Advisers Limited is the holding company of Ultimate Pinnacle Limited. (Address: Fifth Floor, Suite 23, 63/66 Hatton Garden, London, England, EC1N 8LE). All services and products accessible through the site www.upfxtrade.com are provided by Ultimate Pinnacle Limited with the registered address Suite 305, Griffith Corporate Center P.O Box 1510, Beachmont Kingstown St.Vincent & the Grenadines.
Ultimate Pinnacle Limited is a limited liability company established in Belize as an operating subsidiary within the Lepanto Group of companies (collectively “Ultimate Pinnacle”) under Registration No. 173474 and having its registered address at No. 1 Corner of Hutson Street and Marine Parade, Belize City, Belize.

Lepanto Group Pty Ltd is authorised and regulated by the Australian Securities & Investments Commission, ASIC (ACN: 072 424 830)

Ultimate Pinnacle Limited is a company authorised and regulated by the National Futures Association (NFA ID: 0537666)

e-mail: [email protected]

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