Reviewed by the Partner Federation partnerships team, with two decades of combined experience in online trading and brokerage partnerships. Last updated September 2026.
What is a lot rebate?
A lot rebate is a fixed dollar amount a partner earns per lot traded by a referred client — paid on an ongoing basis for as long as that client keeps trading, regardless of whether the trade was profitable for the broker. It’s one of three distinct ongoing payment models, alongside revenue share (a percentage of the broker’s net P&L) and spread share (a percentage of the spread itself).
Across forex and CFD partner programs generally, lot rebate is the one you’ll run into most often — see What Is the Most Popular Partnership Model? for why it leads, and whether that makes it the right fit for your own traffic.
How lot rebate payouts work
- Partner shares a unique referral link or code, same acquisition mechanism as any other partnership model.
- A prospect signs up and starts trading through that link, tracked as the partner’s referral for the life of the account.
- The broker pays a fixed amount per standard lot the client trades — typically $3–$12 per lot, varying by broker, instrument, and account type — regardless of whether that specific trade made or lost money for the broker.
- This repeats for as long as the client keeps trading, with no cap and no re-referral needed.
For the mechanics of how and when that payout actually reaches you — methods, minimum thresholds, frequency, and currency — see Getting Paid: Payout Methods, Thresholds & Timing.
Worked example
Illustrative only — figures are industry-typical ranges from third-party sources, not a real broker’s published terms.
Say a partner refers a client who trades 8 standard lots a month, and the broker pays a $6-per-lot rebate. That’s $48/month per active client, growing the longer the client keeps trading. Scale that across 50 actively-trading referred clients and the same partner is earning roughly $2,400/month in rebate income — entirely a function of trading volume, independent of whether the broker’s own risk book made or lost money on those clients. Every calculator and checklist on the site, in one place: see the Tools & Resources page.
Rebate Calculator
Estimate ongoing earnings under a lot rebate or spread share model, based on your referred clients’ trading volume.
Lot Rebate vs. Revenue Share vs. Spread Share
| Lot Rebate | Revenue Share | Spread Share | |
|---|---|---|---|
| Basis | Fixed $ per lot traded | % of broker's net P&L / revenue | % of the broker's spread markup |
| Tied to broker profitability? | No — pays on volume regardless | Yes — pays on what the broker actually earns | Partially — tied to spread markup, not overall P&L |
| Predictability for partner | High — easy to model from expected volume | Lower — depends on client trading outcomes | Moderate — depends on spread and volume |
| Typical range | $3–$12 per standard lot | 20–40% of net revenue | 30–40% of spread markup |
What determines lot rebate size
- Asset class — majors typically carry different rebate rates than exotics, indices, or CFDs
- Account type — raw-spread/commission accounts vs. standard-spread accounts often carry different rebate schedules
- Partner's referred volume — larger IBs often negotiate better per-lot terms than smaller ones
- Network position — in master IB / sub-IB structures, the per-lot pool is split between tiers; see Introducing Brokers Explained
Who lot rebate suits best
Lot rebate rewards raw trading volume above all else, which makes it a strong fit for partners referring high-frequency or high-volume traders — scalpers, algo traders, prop-style accounts — where revenue share's dependence on broker profitability would be a poor match (a high-volume trader who's net profitable for themselves may generate relatively little net revenue for the broker, but still generates plenty of lot volume). It suits poorly a partner whose referred clients trade rarely or in small size, since the model pays purely on volume traded. Cashback is a common value-add here too — since lot rebate pays a fixed amount per lot, it's straightforward for a partner to pass part of that back to the client on every trade. See Revenue Share vs. Lot Rebate vs. Spread Share for how lot rebate stacks up against the other two ongoing models.
Pros and cons for partners
| Pros | Cons |
|---|---|
| Predictable and easy to model — a partner can estimate earnings directly from expected lot volume | Pays out even on trades that lose money for the broker, so rates tend to be more conservative than a straight revenue-share percentage might allow |
| Rewards high-frequency trading activity that revenue share might undervalue | No cap, but also no upside from a highly profitable-for-the-broker client beyond their volume |
| Simple to explain and audit compared to a percentage-of-P&L calculation | Same fraud exposure as any volume-based model — watched closely for wash trading |
Compliance and fraud risk
Because lot rebate pays purely on volume, it creates a direct incentive to inflate lot count regardless of genuine trading intent — matched trading, wash trading, and self-referral loops are the most common ways this gets abused, and brokers actively monitor for exactly this pattern. Full detail: Partner Fraud & Prohibited Practices.
Some brokers will also mark up the spread beyond their own standard pricing to push a partner’s rate well above this range — see Markups Explained for how that works, what it costs the client, and the one question to ask before agreeing to a marked-up rate.
FAQ
What does lot rebate mean in forex affiliate marketing?
A lot rebate is a fixed dollar amount a partner earns for every lot a referred client trades, paid on an ongoing basis regardless of whether the broker profited on that specific trade.
How much do brokers pay for lot rebate in forex?
Typical industry ranges run $3–$12 per standard lot, varying by broker, instrument, and account type.
Is lot rebate better than revenue share?
Neither is universally better. Lot rebate is more predictable and rewards trading volume directly; revenue share can pay more per client if that client is genuinely profitable for the broker, but is less predictable since it depends on broker P&L.
Can lot rebate and revenue share be combined?
Not typically as two simultaneous ongoing components from the same broker for the same client — a partner usually picks one ongoing model, though a hybrid deal can combine a smaller upfront CPA with either one as the ongoing leg.
Does lot rebate ever stop paying?
Only if the referred client stops trading, closes their account, or the partnership agreement ends. There's no cap tied to a single qualifying action.