What is a trading rebate?

A trading rebate is money returned to you for each lot you trade. It comes from the commission a broker pays to an introducing broker (IB) for referring you, with the IB sharing part of that payment back with you.

What is an introducing broker?

An introducing broker is a person or company that refers new clients to a broker. In return, the broker pays the IB a fee, usually a set amount per lot those clients trade. This is a long-standing and common arrangement in the forex industry.

Where the rebate comes from

Traditionally, the IB keeps that whole fee. A rebate service instead passes much of it back to the trader. The important point is that the payment comes out of the broker's own earnings. Your spreads and commissions stay exactly the same as they would for any other client on that account type.

How TradesBack fits in

TradesBack is a rebate service of this kind. You open your broker account through TradesBack's referral link, and TradesBack passes most of the IB commission it receives from the broker back to you as a rebate, paid in USDT (a dollar-linked stablecoin). Your broker's spreads and fees are unchanged; the rebate is simply a share of what the broker was already paying for the referral.

Common features of rebates

• Usually calculated per standard lot traded, scaled for mini and micro lots.
• Paid regularly, for example daily, weekly or monthly, depending on the service.
• Generally paid whether individual trades win or lose, because they are linked to volume, not results.
• Normally require the account to be opened through the rebate provider's referral link.

Key takeaways

• A rebate is part of the IB commission the broker pays, shared back with you.
• Your spreads and commissions stay the same; the money comes from the broker's referral payment.
• Rebates are linked to how many lots you trade, not whether trades win.
• You usually need to open your account through the rebate provider's link.