Rebate Guide for Spread Betting, Forex and CFDs

Rebates for Spread Betting, Forex and CFDs

Using Monthly Rebates to Cut Your Trading Costs

Rebates are a way of getting some money back from your broker or spread betting company.

Financial Spreads have started a new monthly rebate scheme called “Trader Rebate” which looks like one of the more generous and user-friendly schemes.

We have covered the Trader Rebate and other rebate offers below.

First Things First… Do Rebates Help You?

  • check_boxRebates reduce your trading costs and are useful for high volume / high frequency traders.

  • check_boxIf you trade semi-frequently with medium-large trades sizes e.g. +£10/point then they can also help reduce your costs.

  • cancelIf you trade a few times a month then you are unlikely to get a rebate. If you do happen to earn a rebate then it’s likely to be very very small. I.e. less than £5 and not worth thinking about.

    I’m not being snobby, it’s more a case of, if you think about £5 rebates then you shouldn’t be spread betting.

  • errorLEVEL: Rebates are just there to reduce your trading costs (and create some loyalty for the spread betting firms).

    Concentrate on your trading, if you get a rebate, great. If you don’t then you don’t. It’s your trading P&L that should make the big difference.

  • warningDo not trade more to get a rebate – the risks outweigh the reward.

What About The Little People? What About Low Volume Traders?
1) Same as the big boys… concentrate on getting your trading right.

2) Keep your trading costs low and use a firm that offers tight spreads:

Note that Financial Spreads does tend to do well on the comparisons but a number of the firms are similarly competitive if you are just trading the FTSE 100 or EUR/USD.

3) Use a firm that doesn’t charge you commissions to open/close a trade.

Many spread betting, CFD and forex firms don’t charge commissions to open/close trades but if you use their MT4 platforms then some extra commission costs can creep in. Check trading costs in advance if you want to use MT4.’s “Trader Rebate”: Up to 20% Rebate

As of December 2017, the “Trader Rebate” ticks the boxes of:

  • check_boxNo need to claim – each month they will check if you are due a rebate, when you are, they put the money in your trading account.
  • check_boxEmail update – they email you when a rebate is added to your account
  • check_boxSimple withdrawals – once you earn a rebate you can withdraw it. No hoops to jump through, no need to turn it over X times
The downside… as with nearly all rebates, you need to trade a lot to get a rebate, see examples below.

But… if you trade a lot anyway then they are useful.

Although… as of 27 December 2017 Financial Spreads have dropped the entry level so that if you trade £250 in spread then you’ll get a 10% rebate. This makes it a lot more realistic. But it’s still a lot of trades.

Trader Rebate FAQs

How Big is the Trader Rebate?
  • arrow_forward10-20% depending upon how much you trade in the month
  • arrow_forwardThe minimum rebate is £25 ($30, €30) and the max rebate is £2,500 ($3,000, €3,000)
Monthly Rebate Tiers

Spread Costs in the Calendar Month Rebate Tier
£4,000 20%
£1,500 – £3,999 15%
£250 – £1,499 10%
Less than £250 0%

Spread costs = spread x stake, e.g. one closed £10/pt trade on GBP/USD (0.9pt spread) = £9 in spread costs.

How To Get a Rebate?

As above, and trading with a Financial Spreads Account:
  • arrow_forwardYou do not need to claim the rebate
  • arrow_forwardIf / when you are due a rebate, Financial Spreads will automatically add it to your trading account
  • arrow_forwardThey also email you a confirmation
How To Withdraw the Rebate?
  • arrow_forwardWhen a rebate has been added to your Financial Spreads account you can withdraw the rebate or use it to trade. There are no complex withdrawal criteria
Does the Trader Rebate Work on All Markets?
  • arrow_forwardYou earn a rebate on any markets including forex, stock market indices commodities, and single shares
  • arrow_forwardYou earn a rebate on financial spread betting and CFDs
Monthly Trader Rebate Example 1
  • arrow_forward50 closed trades on the Germany 30 (1pt spread) with a £5 stake creates £250 in spread costs and releases a Trader Rebate of £250 x 10% = £25 rebate
Monthly Trader Rebate Example 2
The following trades create spread cost of £1,505 and so give a Trader Rebate of £1505 x 15% = £225.75:
  • arrow_forward30 closed trades on Brent Crude oil (3pt spread) with a £10 stake (£900 in Spread), and
  • arrow_forward150 closed trades on EUR/USD (0.7pt spread) with a £5 stake (£525 in Spread), and
  • arrow_forward20 closed trades on the FTSE 100 (0.8pt spread) with a £5 stake (£80 in Spread)

More Rebates for Forex, Spread Betting and CFDs

Rebate 2: InterTrader’s “TradeBack”
InterTrader’s “TradeBack” is similar to the “Trader Rebate” but the tiers are not as generous. E.g.:

  • arrow_forwardWith InterTrader you need to trade £2,000 to get a 7.5% rebate. If you trade £5,000 in spread then you get a 10% rebate.
  • arrow_forwardWith Financial Spreads you need to trade £1,000 to get a 10% rebate. If you trade £5,000 in spread then you get a 20% rebate.
Note 1) InterTrader‘s TradeBack only applies to their web platform and not MT4 trades.
Note 2) There is no maximum monthly rebate with “TradeBack”.

In comparison, the maximum rebate with Financial Spreads is £2,500 per month but you would need to trade off the charts to hit that limit.

Err… e.g. you could have 1,562 closed trades on the FTSE 100 (0.8pt spread) with a healthy £10 stake before you hit the £2,500 maximum.

That’s a lot of trading for one month.

(1,562 x 0.8pt x £10/pt = £12,496. 20% of £12,496 = £2,499.2).

Tip: if you happen to be doing this much trading every month then drop them an email. They might adjust the limits for you. You’ll probably need to show you are serious by trading with them for a month first. But it’s worth a simple email.

Rebate 3: Financial Spreads “25% Rebate”
As well as the Trader Rebate, Financial Spreads offer an introductory one-off “25% Rebate”.
  • arrow_forwardYou can get a 25% rebate on your first months trading, irrespective of how much you trade
  • arrow_forwardAfter that you can go on to their Trader Rebate program
  • arrow_forwardTo get the 25% Rebate you do need to deposit £250, your month starts once you deposit £250
  • arrow_forwardYou do need to claim the offer within 30 days – not tricky, just send them a one line email
  • arrow_forwardThe maximum rebate is £2,000 ($2,500, €2,500)

Other FX, CFD and Financial Spread Betting Rebates

The above list is not definitive and naturally it is subject to change.

Other brokers may offer rebates.

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

Leave a Reply

Be the First to Comment!

Notify of