What is a rebate? We show you how to reduce your trading costs
What is a rebate? This is the question facing traders looking to make Forex trading as profitable as possible.
One of the options for reducing costs is rebate (Cashback).
We'll explain rebates in more detail and recommend a broker with whom you can receive up to 60% of the spread back into your trading account for every closed trade.
5 Main Questions About Rebates
What is a rebate? A rebate is a refund to the trader of a portion of the spread from a trade.
Under what conditions are rebates paid? Rebates are paid on both profitable and losing trades. Regardless of the trade's outcome, the broker or rebate service returns a portion of the funds paid to the client for trading on the account.
Please note! Brokers may not count all closed trades toward the rebate and may impose additional conditions, such as trade duration, trading volume, and assets. For example, rebates are only awarded on trades lasting at least 3 minutes on currency pairs and metals, and the monthly trade volume must exceed 3 lots. Therefore, before registering with a broker, carefully review the terms and conditions to understand the rebate and its impact on real Forex trading.
What types of rebates are available? It can be a percentage of trading turnover or a fixed amount. The exact payment method is specified in the rebate terms of each broker or rebate service. However, it's important to remain vigilant, as some brokers award rebates not as cash, but as trading bonuses, which the client must earn to transfer to their account balance by trading a specified number of lots. For example, at NPBFX , traders receive a 60% spread refund. There are no hidden fees—the rebate is automatically credited to the client's account by the broker, in real money, and is fully available for trading and withdrawal.
How often are rebates paid? Depending on the broker's or rebate service's program terms, payments can arrive at different intervals, though monthly payments are most common.
What types of rebates are there?
External rebate
What's the gist? Rebates are awarded through third-party partner services that act as intermediaries between the trader and the broker. These platforms work with dozens of different companies, not just one.
How does it work?
- You register with a rebate service, which keeps track of your account's deposit statistics.
- Open an account with a broker who is a partner of the rebate service.
- Receive payments through the service. The amount and frequency depend on the rebate service's terms.
Internal rebate
What's the deal? The broker's rebate is credited directly to your account, without intermediaries.
How does it work?
- You open an account with a broker,
- Join the rebate program and start trading.
- Payments are automatically transferred to your account directly from the broker via an internal transfer.
What are the benefits of a rebate?
Let's look at the example of "Cashback - up to 60% on every transaction!" from NPBFX:
- You reduce your mandatory trading costs and can earn more, as cashback is available for new trades and withdrawals.
- You can use scalping and algorithmic trading—strategies in which the spread is a significant expense. NPBFX has no restrictions on cashback trading strategies.
- You can choose exotic assets: with wide spreads and low liquidity, including exotic currency pairs with the krona, Russian ruble, and Asian currencies.
- You reduce the size of your losses: since rebates are also awarded on unprofitable trades.
But let's look at it from a different perspective. It might seem like why would a broker share its profits with a trader? For the broker, a rebate also offers obvious benefits. Among them:
- Rebate programs help increase customer loyalty and make trading conditions more attractive compared to competitors' rates.
- Thanks to the rebate, the trader gets the opportunity to increase their trading turnover, from which the broker also earns commission.
What is Cashback? NPBFX's
- You receive up to 60% of each transaction to your account (up to $7 per lot).
- Cashback is credited to your trading account automatically within 10 business days of the billing month.
- Cashback is awarded for these categories: FX, Indices, Energy, Cryptocurrency.
- Maximum Cashback payout per month: $10,000.
- You can withdraw the full Cashback amount.
- You can use the entire Cashback amount to conduct trading operations.
Trading accounts already registered with rebate services do not participate in the promotion.
At NPBFX, your trading will truly be more profitable. This promotion from a trusted company will help you reduce your trading costs and earn up to 60% rebates on your spread.
NPBFX is a broker with an impeccable reputation, serving Forex traders since 1996. Until 2016, trader services were provided by JSC Nefteprombank, licensed by the Bank of Russia. NPBFX subsequently expanded its trading services and offerings. Today, trade execution is provided using STP/NDD technology without conflicts of interest, and client accounts are protected up to €20,000.
Trade on the licensed, proven MetaTrader 4 platform from NPBFX with 1:1000 leverage, receive a 60% spread rebate, and experience the real benefits of resolving the question: "What is a rebate?" Follow this simple guide right now:
How to enable Cashback and reduce trading costs? A detailed guide.
- Follow the link NPBFX broker website .
At this stage, you'll need to register your Personal Account. To do this, enter your first name, last name, email address, and phone number in the "Register" form. Your Personal Account access details will then be sent to the email address you provided.
- Open a Master and top it up with $100.
In your Personal Account, you can open a trading account and immediately deposit the minimum required amount. We recommend verifying your identity immediately, i.e., providing the required documents. You can find a list of these documents in the "Verification" section of your Personal Account. Verification will speed up the withdrawal of earnings and cashback.
- Submit a request to activate Cashback in the Promotions section of your Personal Account.
Please note! Your account is considered registered for the promotion when you receive an email stating, "Your account has been successfully registered for the Cashback promotion." Other trading account types can also be eligible for the rebate, but please contact your NPBFX account manager for details.
Sign up for 60% Cashback from NPBFX and trade profitably now.
