Many traders are quickly attracted to a high rebate number, even though that figure must be reviewed together with spread, commission, account type, and the instruments being traded.
Understand the rebate model
- USD per lot is easier to compare as a direct monetary value.
- Pips must be read together with pip value.
- Percentage of spread is relevant for spread-based accounts.
- Percentage of commission often appears in Raw or ECN setups.
Compare the total trading cost, not just the headline rebate. A broker with a smaller rebate may still be more efficient if its spread and commission are more competitive.