FX Rebate Central offers you a mix of brokerage firms, which offer a variety of rebates and savings. The two main types of rebates are a fixed pip rebate (e.g. 0.7pips) or a percentage of spread (e.g. 25% of the spread). Although in most cases they equate to a similar amount, there are key differences worth noting.
Fixed Rebate |
Percentage of Spread |
|
✓ Easy to equate |
✓ Higher value in most cases |
|
✓ Fixed never changes |
✓ Allows room for a spread discount |
|
✕ Lower value on higher spread instruments |
✓ More value on higher spread instruments |
|
✕ Generally harder to calculate and track |
Most brokerage firms offer a fixed rebate amount which can be found on our brokerage section of this website. This is a fixed amount regardless of spreads that you could receive back for every trade you make with the brokerage firm of your choice.
Brokerage Firm ABC offers a rebate of 0.7pips per trade lot. Their spread on EURUSD is 3 pips. A 0.7 rebate equates to approximately 23.3% of the spread. Everything you open and then close a trade on EURUSD you will receive back the rebate value of the spread according to the volume of the trade.
However the spread on AUDUSD with brokerage firm ABC is 4pips, and your rebate is 0.7 of the spread. In this case you are up for a rebate and saving of 17.5%.
Occasionally brokerage firms will offer a percentage of spread as a rebate, which gives you a fixed percentage of spread regardless of what you trade.
Brokerage firm XYZ offers a rebate of 25% of the spread per full traded lot. Their spread on EURUSD is 3 pips. 25% of the spread in this case equates to the value of 0.75 pips. Another pair AUDUSD has a 4 pip spread. In this case 25% of the spread is the equivalent of 1pip rebate.
