FBS cashback per lot is an important concept for traders who want to reduce their overall trading costs. Instead of looking only at spreads or commissions, traders can also consider how much cashback they may receive from eligible trading activity. Understanding how FBS cashback is calculated per lot makes it easier to estimate potential returns, compare rebate programs, and determine whether a particular offer is suitable for a trading strategy.
In an IB-based rebate model, cashback is generally linked to the commission generated by eligible trading volume. RebateFX explains that FBS rebates are calculated from the IB commission actually received from FBS and then shared with the trader according to the applicable rebate percentage.
FBS cashback per lot refers to the amount of rebate associated with a specific amount of eligible trading volume. A lot is a standard unit used to measure trade size, while the actual commission generated from that lot can vary depending on the instrument, account type, and applicable partner conditions.
A lot represents the trading volume of a position. FBS explains that different lot sizes have different contract values, such as standard, mini, and micro lots. The value of a point can also change depending on the currency pair and account currency.
For cashback purposes, the key point is that the number of lots traded contributes to the amount of IB commission generated. A trader who completes 10 eligible lots will generally generate more commission volume than a trader who completes one lot, assuming the same instrument and applicable commission structure.
The basic calculation starts with the IB commission generated by eligible trading activity and then applies the rebate percentage. This distinction is important because the cashback is not necessarily calculated directly from the spread paid by the trader.
The general formula can be expressed as:
FBS Cashback = IB Commission Actually Received × Rebate Rate
For example, assume one eligible lot generates $10 in IB commission for the rebate provider. If the applicable cashback rate is 80%, the estimated cashback would be:
$10 × 80% = $8
If the applicable rate were 90%, the calculation would instead be:
$10 × 90% = $9
RebateFX currently describes an FBS rebate structure of up to 90% of the IB commission actually received, although the applicable rate and final amount depend on the relevant account, instrument, and program conditions.
The same principle can be applied to multiple eligible lots.