Forex Rebate Calculator
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Use our precise forex rebate calculator to help you determine how much you can earn in cashback from your closed trading positions, with your favourite broker.
What is Forex Cashback
Forex cashback is a spread and trading commissions discount program, giving smart traders the advantage of earning extra cash from their closed trading positions. This program can be used with their preferred FX broker and traders can earn cashback, regardless if the position is closed in profit or loss.
In simple terms, it’s a forex rebates program provided by an IB broker (Introducing Broker), linked to a trading account, offering a cash rebate for each closed trade. Ultimately, by discounting the cashback rate, the rebate program will result in lower spreads and an improved win ratio.
For example, if the cashback rate for a certain forex broker is 0.4 pip and the spread on the EUR/USD pair is 0.6 pip, then the net spread will be only 0.2 pip.
How to Earn Forex Rebates
Traders can earn cashback straight away by following a couple of really simple steps:
- Sign-up with a reputable forex rebates provider.
- Link a new, or existing, real trading account to the rebates provider (IB broker).
When the cashback account is approved and traders start trading, the FX broker will pay the forex rebates provider part of the spread, or commission costs, for every closed position, as a compensation for referring a customer to them.
The forex rebates provider will then share most of its revenue with the trader, as a thank you for signing up with the FX broker via the rebates provider. Thus, traders will earn forex rebates, paid in cashback (multiple withdrawal options are normally available), or credited back to their trading account equity.
Now you know what is forex cashback and how to earn rebates with your trading. Time to explain how our forex cashback and rebate calculator can help traders to calculate accurately how much they can earn in cashback, based on the total volume traded and rebate rate..
How to Use the Forex Rebates Calculator
Currency pair: The cashback per trade can vary depending on the selected cross, as it takes into account the current market price. In this field, simulations can be selected using the most popular cryptocurrencies (DOGE, XRP, ETH, BTC, LTC, etc.) against the main fiat currencies, the Major forex crosses and Minor pairs, Gold/Silver and the most popular indices or Gold/Silver. Let's choose, for example, the GBP/USD.
Deposit currency: The rebate calculator is ready for most deposit currencies, including accounts in cryptocurrencies and fiat currencies, from AUD to ZAR. We will select USD as the deposit currency, for our example.
Rebate per lot: The main variable of this calculator. The majority of the FX brokers will pay the rebate in pips, taken from the pair’s spread. Other brokers, mainly the ECN environment trading brokers, will prefer to offer a rebate on the trading commissions.
For example, an ECN environment broker, charging 5 USD commission per traded lot, might pay a rebate of 1 USD per closed lot (100,000 units), resulting in a net trading commission of 4 USD. But, most FX brokers simply pay the rebate from the spread. Thus, for this example, we will use the hypothetical rebate rate per lot of half a pip (0.2 pip).
Lots traded: Forex rebates are paid on the lots traded (closed volume), regardless if the trade was closed with a loss or in profit. There’s also an option of calculating the rebates value based on the units traded (just click the cog wheel and switch to units). Let's choose, for our example, a total volume of 4.5 lots traded.
Now we hit the "Calculate" button.
The results: The rebate calculator connects to live market prices with the current interbank rate (in a 5-digit format) for the pairs that don't use the account base currency (for example AUD/CAD) to convert the rebates value into the account base currency.
The cashback value for a volume of 4.5 traded lots on the GBP/USD pair, with a rebate rate of 0.2 pip, on a USD trading account, is currently US$9.00. Again, remember that rebate values are always converted in cashback and paid to the preferred withdrawal method, regardless if the traded volume was closed in profit or in loss.
Please consider a quick visit to our What are Forex Rebates article. It can help traders understand how the forex rebates programs work, how cashback is paid and what are the advantages of joining a forex rebates program.
Add this Rebate Calculator to Your Website
Our set of calculators use live market rates, allowing traders to get the most accurate calculations possible. These calculators work with most forex pairs (Major and Minor crosses), world indices, metals and with the most popular cryptocurrencies: BTC, DOGE, XRP, LTC, ETH and many more.
Not only it is possible to calculate with precision what would be the cashback value for a DOGE/USD trade, based on your rebate rates and trading volume, or for a 0.10 lot long EUR/USD trade, for example, but also, these great calculators are localised in 23 different languages, including Chinese, Russian, Arabic, and Japanese.
With a user-friendly interface and an intuitive design, these tools can be easily customized and embedded with any web page. The great advantage of our tools is that they are completely unbranded, without any 3rd party logos. Plus, these tools can be be fully customized to match the colour scheme and the layout of any web page.
If you consider that this complete suite of calculators might create added value for your web pages, or to simply complement a "Tools/Calculators" section of your portal, you are free to embed them on your website.
All the widgets can be used and embedded as they are, or they can be fully customized to suit your website’s colours. After configuring the settings, simply copy/paste the final code to embed the tool/calculator widget on your web page.