Forex IB rebates explained

A forex IB rebate is a fixed payment for each lot your referred clients trade. Because it continues as long as they trade, it suits IBs with active, long-term clients such as signal groups and trading communities.

What is a lot?

In forex, one standard lot is 100,000 units of the base currency. A mini lot is 0.1 lot and a micro lot is 0.01 lot. Rebates are normally quoted per standard lot and paid pro rata on smaller trades, so a 0.1 lot trade earns a tenth of the rate.

Per side vs round turn

This is the most common source of confusion:

• Per side means each opening or closing of a trade counts separately.
• Round turn (or "per round lot") means a full trade, opened and closed, counts once.

Example: a client opens and closes a 1-lot trade. A $5 per side rebate pays $10 for that trade. A $5 round turn rebate pays $5. Always ask which one a quote means.

Rebates differ by instrument

Brokers earn different amounts on different products, so rebates usually differ too. Major currency pairs often have one rate, while gold, indices, oil, crypto and shares CFDs each have their own rate, or no rebate at all. If your clients mostly trade gold, the forex rate is the wrong number to compare.

Rebates differ by account type

"Raw" or "zero spread" accounts make money from a fixed commission, while standard accounts make money from a wider spread. The rebate you're offered may differ between them. Check which account types your clients will open.

Minimum trade duration rules

Many programs don't pay rebates on trades closed within a short time, for example under 2 or 3 minutes, or with very small price movement. This stops abuse by rebate scalping. If your clients scalp, check this rule carefully.

Volume tiers

Many brokers raise the rebate as your clients' monthly volume grows. Ask whether a higher tier applies to all lots once reached, or only to the lots above the threshold. See how IB commission tiers work.

How to check your rebate statement

1. Download client-level volume from your partner portal.
2. Group it by instrument and account type.
3. Apply your agreed rate per group, per side or round turn.
4. Compare with what was paid. Ask about any gap; honest errors happen.

Frequently asked questions

What is a good forex rebate per lot?

It depends on the instrument, account type and your volume. Compare the effective rate for your clients' actual trading, not the headline.

Do rebates change the client's trading costs?

Usually not directly: the rebate is paid from the broker's revenue. Some brokers do offer accounts with wider spreads for IB clients, so ask, and be transparent with your clients.