Why Does a Trader Need a Rebate and How Does It Work
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A rebate (cashback) is a return to the trader of part of the commission or spread for each trade, or a part of the deposited amount.
A rebate in online trading is similar to a cashback that many people know from shops and online services. The difference is that here the money is returned not for goods, but for trading activity in financial markets.
When a trader opens trades, he always pays commissions and spreads to the broker. A rebate allows the trader to get back part of these costs as real money. This money can be withdrawn or used for further trading.
In practice, the trader trades in the same way as before, but trading costs become lower and overall efficiency becomes higher.
It is important to understand that a rebate is not a bonus and not a temporary promotion. It is a stable system of returning part of the trader’s costs. It works on a regular basis and depends on trading activity.
In online trading, there are two main types of rebates, and both can be useful if used correctly.
Option 1.
Get Money for Every Trade – Profitable or Losing
The first rebate option is the most common one. It is a return of part of the commission or spread for each trade. The key point is that the rebate is paid regardless of the trade result. The trade can be profitable, losing, or closed at zero. The rebate is still credited to the account.
Let us imagine a trader who works with a deposit of 100 USD and uses leverage of 1:1000. In this case, the trade volume can be 1 standard lot. If the rebate is set at 5 USD per traded lot, then each trade returns 5 USD to the trader.
If the trade brings a profit of 25 USD, the final result becomes 30 USD with the rebate.
If the trade is closed at zero, the trader still earns 5 USD from the rebate.
If the trade closes with a loss of 25 USD, the real loss is reduced to 20 USD.
In this way, the rebate partially compensates trading costs and helps reduce drawdowns.
If the total trading volume is 10 lots, the trader will receive 50 USD in rebates. This is already half of the initial deposit returned simply for trading activity. With a trading volume of 40 lots, the rebate will reach 200 USD, which is twice the original deposit.
The logic is simple and transparent: the more you trade, the more cashback you receive.
Option 2.
Rebate for Opening and Funding a Trading Account
The second rebate option is used less often, but it can be even more attractive for many traders.
In this case, the trader receives a rebate from the deposited amount, not from trading volume. The rebate is paid for opening and funding a trading account.
For example, a trader deposits 1,000 USD and receives a rebate of 25 percent. This means that an additional 250 USD is credited to the account as real money. Unlike classic bonuses, these funds usually do not require complex turnover conditions. They are not tied to mandatory trading volume and can be withdrawn or used in trading without strict limitations.
And 25 percent is not the maximum. For example, if you open an account via the link on this website with the broker InstaForex and make your first deposit of 200 USD, you can receive not 25 percent and not even 40 percent, but 50 percent, which is 100 USD.
At the same time, it is important to understand that any broker is interested in long-term clients. The broker does not want traders to open an account, take the rebate, and leave immediately.
That is why a standard condition for such a rebate is trading activity for at least one month after opening the account.
Rebate: Transparent Return Without Hidden Conditions
It is very important to emphasise that a rebate is not a bonus with complicated rules, not borrowed money, and not a marketing trick. It is a real, transparent, and regular return of part of trading costs or part of deposited funds. The received rebate can be withdrawn at any time or used for trading without additional restrictions.
Of course, trading in financial markets is always connected with high risks of capital loss. However, a rebate objectively makes trading cheaper, reduces commission pressure, and helps traders feel more confident. The more actively and systematically you trade, the stronger this effect becomes.
We will be happy to answer your questions, discuss the details, and offer rebate options that best match your trading style and volumes. You can contact us via social networks or by email. Contact details are available at the bottom of the page.
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