Cashback vs. Spread discounts: which saves you more?

Every time you enter or exit a Forex trade, you pay a cost — either in spread or commission. Over hundreds of trades, those costs add up and can quietly eat into your profits.
That’s why most professional traders look for cost-saving methods like cashback and spread discounts.
But which one actually saves you more? Let’s dive in.

A spread discount means your broker offers you a reduced spread on trades.
For example:

• Standard EUR/USD spread = 1.2 pips
• Discounted spread = 0.9 pips
  That’s a 0.3-pip reduction per trade — lowering your entry and exit cost directly.

Pros:

• Immediate savings when you open the trade
• Easy to calculate and see in your trading platform
• Ideal for scalpers who trade tight spreads

Cons:

• Requires special broker arrangements (often for high-volume or VIP clients)
• Usually smaller savings compared to cashbacks
• Some brokers widen spreads elsewhere to offset the discount

Example: Which One Saves More?

Let’s say you trade 200 lots per month.

Option A – Spread Discount:

1. 0.3-pip reduction on EUR/USD (worth $3 per lot)
2. Savings = $600/month

Option B – Cashback:

1. $2 per lot rebate
2. Savings = $400/month

Now, if your broker already offers ultra-tight ECN spreads, the cashback might actually save you more consistently — since you get paid on every trade, even small ones that don’t benefit from reduced spreads.

In real-world trading, cashback usually offers more flexibility and predictability — especially when combined with low-spread ECN accounts.

Pro Tip: Combine Both for Maximum Savings

Some brokers allow both — you trade with a spread discount and still earn cashback via ForexCashbackRebate.
 

That means double savings: a smaller upfront cost plus cash returns later.

This combination can reduce your effective trading costs by 30-50%, especially for high-frequency or EA-based strategies.

For most traders, Forex cashback offers greater transparency, flexibility, and long-term savings — especially when earned through trusted partners like ForexCashbackRebate, which negotiates higher rebate rates with leading brokers like IC Markets, Tickmill, and XM.