Forex traders in 2024 face a critical choice: should they prioritize forex cashback or rebates to maximize savings? While both forex cashback and rebates offer ways to recover trading costs, their structures, eligibility, and payout models differ significantly—impacting your bottom line. Cashback programs refund a percentage of spreads or commissions directly, while rebates provide per-trade payouts, often through third-party providers. This guide breaks down the key differences, analyzes real-world savings, and reveals which option (or combination) puts more money back in your pocket this year. Whether you’re a high-volume day trader or a casual investor, understanding these incentives could mean thousands in recovered fees—let’s dive in.
1. Understanding Forex Cashback vs. Rebates
When trading in the forex market, every pip and every dollar saved can significantly impact profitability. Two popular ways traders reduce costs and maximize returns are through forex cashback and rebates. While both offer monetary benefits, they operate differently and cater to distinct trading styles. Understanding the key differences between forex cashback vs rebates is crucial for traders looking to optimize their savings in 2024.
What is Forex Cashback?
Forex cashback is a reward system where traders receive a portion of their trading costs (spreads, commissions, or fees) back as a monetary refund. Cashback programs are typically offered by:
- Broker-affiliated programs – Some brokers provide cashback directly to traders as an incentive.
- Third-party cashback services – Independent platforms partner with brokers to offer rebates on trades.
### How Forex Cashback Works
Cashback is usually calculated as a percentage of the spread or a fixed amount per lot traded. For example:
- A broker may offer $5 cashback per standard lot traded.
- Alternatively, a trader might receive 0.5 pips cashback on every trade.
Example:
If a trader executes 10 standard lots in a month with a $5 cashback per lot, they receive $50 back, effectively reducing their trading costs.
Advantages of Forex Cashback
1. Immediate Savings – Cashback is credited to the trader’s account regularly (daily, weekly, or monthly).
2. Scalability – The more you trade, the more cashback you earn.
3. No Restrictions – Unlike rebates, cashback is often available on all trade types (including scalping and high-frequency trading).
Limitations of Forex Cashback
- Broker Dependency – Not all brokers offer cashback programs.
- Variable Rates – Cashback percentages may fluctuate based on broker policies.
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What Are Forex Rebates?
Forex rebates are similar to cashback but are structured differently. Rebates are refunds given to traders based on their trading volume, usually facilitated by Introducing Brokers (IBs) or affiliate programs.
How Forex Rebates Work
Rebates are typically paid as a fixed amount per lot or a percentage of the spread. Unlike cashback, rebates are often processed through a third-party service rather than directly from the broker.
Example:
- A rebate program may offer $7 per standard lot traded.
- If a trader executes 20 lots in a month, they receive $140 in rebates.
### Advantages of Forex Rebates
1. Higher Payouts – Rebates often provide larger refunds compared to standard cashback.
2. Broker Flexibility – Traders can keep their preferred broker while still earning rebates.
3. Passive Income for IBs – Traders who refer others can earn additional rebates from their referrals’ trading activity.
Limitations of Forex Rebates
- Delayed Payments – Some rebate programs process payments monthly.
- Eligibility Requirements – Certain brokers exclude rebates on specific account types (e.g., ECN accounts).
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Key Differences Between Forex Cashback vs Rebates
| Feature | Forex Cashback | Forex Rebates |
|—————–|—————|————–|
| Source | Directly from broker or third-party | Usually via Introducing Brokers (IBs) |
| Payment Structure | Percentage of spread or fixed $/lot | Fixed $/lot or spread-based |
| Payment Frequency | Daily/Weekly/Monthly | Mostly Monthly |
| Broker Dependency | Limited to participating brokers | Works with multiple brokers |
| Best For | High-frequency traders, scalpers | Long-term traders, high-volume traders |
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Which One Saves You More Money?
The choice between forex cashback vs rebates depends on your trading style:
- Scalpers & High-Frequency Traders – Cashback is often better due to instant refunds and no restrictions on trade frequency.
- Swing & Position Traders – Rebates may offer higher per-lot returns, making them more profitable for lower-volume traders.
- High-Volume Traders – Rebates typically provide better savings for traders executing large lot sizes.
### Practical Example: Cashback vs. Rebates
Let’s compare two traders:
- Trader A (Cashback)
– Trades 50 lots/month
– Receives $5/lot cashback
– Total Savings: $250
- Trader B (Rebates)
– Trades 50 lots/month
– Receives $7/lot rebate
– Total Savings: $350
In this case, rebates yield higher savings. However, if Trader A’s broker offers 0.8 pips cashback (worth ~$8 per lot), the cashback could surpass rebates.
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Conclusion
Understanding the nuances between forex cashback vs rebates helps traders make informed decisions to reduce costs. Cashback is ideal for active traders seeking immediate refunds, while rebates benefit high-volume traders looking for larger per-trade savings. In 2024, evaluating broker policies, trading volume, and personal strategy will determine which option maximizes profitability.
For traders aiming to optimize savings, combining both cashback and rebates (where possible) can further enhance cost efficiency in forex trading.
2. How Forex Cashback Saves You Money in 2024
In the competitive world of forex trading, every pip and every dollar saved can significantly impact profitability. One of the most effective ways traders reduce costs is through forex cashback programs. But how exactly does forex cashback work, and why is it a smarter choice compared to rebates in 2024? This section explores the mechanics of forex cashback, its financial benefits, and real-world examples to demonstrate how it maximizes savings for traders.
Understanding Forex Cashback
Forex cashback is a reward system where brokers or third-party providers refund a portion of the trading costs (spreads, commissions, or fees) back to the trader. Unlike rebates, which are typically fixed payouts per lot traded, cashback is often calculated as a percentage of the trading costs, making it more flexible and potentially more lucrative for active traders.
Key Features of Forex Cashback in 2024
1. Percentage-Based Refunds – Most cashback programs return a percentage (e.g., 10%-30%) of the spread or commission, meaning higher trading volumes yield greater returns.
2. No Restrictions on Trading Style – Unlike rebates, which may favor high-frequency traders, cashback benefits scalpers, day traders, and long-term investors alike.
3. Real-Time or Periodic Payouts – Some brokers offer instant cashback credited to the trading account, while others provide weekly or monthly payouts.
4. Compatibility with Other Bonuses – Many brokers allow traders to combine cashback with deposit bonuses or loyalty programs, amplifying savings.
How Forex Cashback Lowers Trading Costs
1. Direct Reduction in Transaction Costs
Every forex trade involves costs—either through spreads or commissions. Cashback directly offsets these expenses by returning a portion of the fees.
Example:
- A trader executes 100 standard lots per month with an average spread cost of $30 per lot.
- With a 20% cashback program, they receive:
“`
100 lots × $30 × 20% = $600 cashback per month
“`
This effectively reduces their net trading costs by $600, improving overall profitability.
2. Better Than Fixed Rebates in Volatile Markets
Rebates offer a fixed amount per lot (e.g., $2 per lot), which may not adjust for changing market conditions. In contrast, cashback scales with trading costs, making it more advantageous when spreads widen during high volatility.
Scenario:
- During a major economic news event, spreads on EUR/USD jump from 1 pip to 5 pips.
- A rebate still pays $2 per lot, but the trader’s cost per lot increases significantly.
- A cashback program refunds 20% of the spread, meaning:
“`
Normal spread (1 pip = $10): $10 × 20% = $2 cashback
Widened spread (5 pips = $50): $50 × 20% = $10 cashback
“`
Here, cashback adapts to market conditions, providing higher refunds when costs rise.
3. Enhanced Profitability for High-Volume Traders
Active traders executing hundreds of lots per month benefit exponentially from cashback due to compounding savings.
Case Study:
- Trader A: Executes 500 lots/month with a $3 commission per lot.
– Rebate: $1.5 per lot → $750/month
– Cashback (30% of commission): $3 × 30% = $0.9 per lot → $450/month
– At first glance, rebates seem better.
- Trader B: Same volume but trades during high-spread periods.
– Rebate: Still $750/month (fixed).
– Cashback: If commissions rise to $5/lot due to volatility → $5 × 30% = $1.5 per lot → $750/month
– Cashback matches rebates but outperforms when costs increase.
This shows that while rebates offer predictability, cashback can match or exceed rebate earnings in volatile or high-cost trading environments.
4. No Hidden Restrictions
Some rebate programs impose conditions like minimum trading volumes or exclude certain account types. Cashback, especially when offered directly by brokers, tends to have fewer restrictions, making it accessible to all traders.
Maximizing Forex Cashback in 2024
Strategy 1: Combine Cashback with Tight-Spread Accounts
Cashback is most effective when trading on accounts with variable spreads (ECN or Raw Spread accounts). Since cashback is percentage-based, lower initial spreads mean higher relative savings.
Strategy 2: Use Cashback Providers with Tiered Rewards
Some third-party cashback services offer tiered rewards—higher volumes unlock better refund rates. Traders scaling up their activity should seek these programs.
Strategy 3: Monitor Payout Schedules
Instant cashback improves liquidity, while monthly payouts may suit swing traders. Aligning cashback schedules with trading frequency optimizes cash flow.
Conclusion: Why Forex Cashback Wins in 2024
When comparing forex cashback vs rebates, cashback emerges as the more dynamic and cost-efficient option in 2024. Its percentage-based structure ensures traders benefit proportionally to their trading activity and market conditions, unlike fixed rebates. For high-volume traders, scalpers, and those navigating volatile markets, cashback provides superior savings and flexibility.
By strategically selecting brokers with competitive cashback rates and combining them with low-cost accounts, traders can significantly reduce expenses—ultimately boosting their bottom line. In an era where every trading advantage counts, forex cashback is a powerful tool for maximizing profitability.
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Next Section Preview: “3. Forex Rebates Explained: Are They Still Worth It in 2024?” – A deep dive into rebate structures, their pros and cons, and whether they remain a viable alternative to cashback.
3. How Forex Rebates Maximize Savings in 2024
In the competitive world of forex trading, every pip saved contributes to long-term profitability. While both forex cashback and rebates offer cost-saving benefits, rebates stand out as a powerful tool for maximizing savings—especially for high-volume traders. This section explores how forex rebates work, their advantages over cashback, and practical strategies to optimize savings in 2024.
Understanding Forex Rebates
Forex rebates are partial refunds of the spread or commission paid on each trade. Unlike cashback, which is typically a fixed percentage of the spread, rebates are often structured based on trading volume, broker partnerships, or tiered reward systems. Rebate providers collaborate directly with brokers to return a portion of transaction costs to traders, effectively lowering the overall cost of trading.
Key Features of Forex Rebates:
- Volume-Based Earnings: The more you trade, the higher your rebate earnings.
- Broker-Specific Programs: Rebate amounts vary depending on broker agreements.
- Instant or Periodic Payouts: Some programs offer daily, weekly, or monthly payouts.
- No Additional Fees: Rebates are usually free to join, with no hidden costs.
## How Forex Rebates Outperform Cashback in 2024
When comparing forex cashback vs rebates, rebates often provide greater savings for active traders due to their scalable structure. Here’s why:
1. Higher Earnings for Frequent Traders
Cashback programs typically offer a flat rate (e.g., 0.5–1 pip per trade), which remains static regardless of trading volume. Rebates, however, often increase in value as trading activity grows. For example:
- Cashback Example: A trader executing 100 monthly trades with a $5 cashback per lot earns $500.
- Rebate Example: A tiered rebate program might offer $7 per lot after 50 trades, increasing to $10 per lot beyond 100 trades—resulting in higher earnings ($1,000+).
### 2. Reduced Effective Spreads
Since rebates directly offset trading costs, they effectively narrow the spread. For scalpers and day traders who rely on tight spreads, this can significantly improve profitability.
Calculation Example:
- Standard Spread: 1.2 pips on EUR/USD
- Rebate Received: 0.3 pips
- Effective Spread: 0.9 pips
Over hundreds of trades, this reduction compounds into substantial savings.
3. Broker Neutrality & Flexibility
While cashback is often tied to specific brokers, rebate programs may work across multiple brokers, allowing traders to choose the best trading conditions without sacrificing savings.
Maximizing Rebate Savings in 2024: Practical Strategies
To fully capitalize on forex rebates, traders should adopt the following strategies:
1. Select High-Volume Rebate Programs
Look for rebate providers offering competitive rates for high-frequency trading. Some top-tier programs in 2024 include:
- Tiered Rebates: Higher payouts for increased monthly volumes.
- Exclusive Broker Deals: Certain brokers offer enhanced rebates through affiliate partnerships.
### 2. Combine Rebates with Low-Cost Brokers
Pairing rebates with brokers that already offer tight spreads or low commissions amplifies savings. For instance:
- ECN Brokers: Typically charge commissions but offer raw spreads. A rebate on top of this structure can make trading ultra-cost-effective.
- STP Brokers: Rebates help offset wider spreads, improving net profitability.
### 3. Track & Optimize Trading Frequency
Since rebates reward volume, traders should:
- Use Automated Trading: Bots or algorithmic strategies can increase trade counts without manual effort.
- Monitor Rebate Thresholds: Ensure trades meet minimum lot requirements for maximum payouts.
### 4. Leverage Multiple Rebate Accounts
Some traders diversify across several rebate providers to maximize returns from different brokers. However, ensure compliance with broker terms to avoid conflicts.
Real-World Example: Rebate Savings in Action
Consider a trader executing 500 standard lots per month under two scenarios:
| Metric | Without Rebates | With Rebates ($5/lot) |
|———————|———————|—————————|
| Total Trading Cost | $10,000 | $10,000 |
| Rebate Earnings | $0 | $2,500 |
| Net Cost | $10,000 | $7,500 |
Savings: $2,500/month ($30,000 annually)
This demonstrates how rebates transform trading economics, particularly for professionals.
Conclusion: Why Rebates Are the Superior Choice in 2024
When evaluating forex cashback vs rebates, rebates emerge as the more lucrative option for serious traders. Their volume-based structure, spread-reducing effect, and flexibility make them indispensable for cost optimization. By strategically selecting rebate programs, pairing them with low-cost brokers, and maximizing trade volume, traders can significantly enhance their bottom line in 2024.
For those prioritizing long-term savings, forex rebates are not just an alternative—they are a necessity.
4. Direct Comparison: Which Saves More?
When evaluating forex cashback vs rebates, traders must consider several factors to determine which option offers greater savings. Both cashback and rebates reduce trading costs, but their structures, payout mechanisms, and suitability vary depending on trading style, volume, and broker partnerships. This section provides a detailed comparison to help traders decide which option maximizes their savings in 2024.
1. Cost Savings Structure
Forex Cashback: Volume-Based Savings
Forex cashback programs return a portion of the spread or commission paid on each trade, typically calculated as a fixed amount per lot or a percentage of trading costs.
- Example: A trader executing 10 standard lots (1,000,000 units) with a $3 cashback per lot earns $30 back, regardless of trade profitability.
- Best For: High-frequency traders and scalpers who execute numerous trades, as cashback accumulates quickly with volume.
### Forex Rebates: Spread/Commission Reduction
Rebates are pre-negotiated reductions in spreads or commissions, lowering the cost per trade directly.
- Example: A broker offers a 0.2-pip rebate on EUR/USD, reducing the effective spread from 1.0 pip to 0.8 pips. For a 10-lot trade, this saves $20 (0.2 pips × $10 per pip × 10 lots).
- Best For: Traders with large position sizes, as rebates provide immediate cost savings per trade.
Key Insight: Cashback rewards volume, while rebates reduce per-trade costs. High-volume traders may prefer cashback, whereas position traders benefit more from rebates.
2. Payout Frequency and Accessibility
Cashback: Delayed but Predictable
- Most cashback programs pay out weekly or monthly.
- Funds are usually withdrawable or usable for further trading.
- Example: A trader receives $200 monthly cashback, which can be reinvested or withdrawn.
### Rebates: Instant but Non-Withdrawable
- Rebates apply immediately, reducing the cost basis of each trade.
- Savings are reflected in real-time but do not generate additional withdrawable funds.
- Example: A 0.3-pip rebate on GBP/USD means paying 0.7 pips instead of 1.0 pip, but the trader cannot withdraw the saved amount.
Key Insight: Cashback provides liquidity, while rebates offer continuous cost efficiency.
3. Suitability by Trading Strategy
| Trading Style | Better Option (Cashback vs. Rebates) | Why? |
|——————|——————————–|———|
| Scalping | Cashback | High trade volume maximizes cashback earnings. |
| Day Trading | Cashback/Rebates (depends on broker) | Frequent traders benefit from both, but cashback may yield higher returns. |
| Swing Trading | Rebates | Fewer trades but larger positions make rebates more effective. |
| Position Trading | Rebates | Lower trading frequency favors per-trade cost reductions. |
4. Broker Influence on Savings
Not all brokers offer both cashback and rebates, and terms vary significantly:
- Cashback Brokers: Often third-party providers (e.g., Cashback Forex, FXRebates) partner with brokers to offer retroactive payouts.
- Rebate Brokers: Some brokers (e.g., IC Markets, Pepperstone) provide built-in rebate programs for tight spreads.
Pro Tip: Compare brokers offering forex cashback vs rebates—some may have hidden restrictions (minimum lots, eligible account types).
5. Real-World Savings Comparison
Scenario 1: High-Volume Trader (100 Lots/Month)
- Cashback: $3 per lot × 100 lots = $300/month
- Rebate: 0.2 pips × $10 per pip × 100 lots = $200/month
Winner: Cashback
Scenario 2: Low-Volume, Large-Position Trader (10 Lots/Month, 10-Pip Spreads)
- Cashback: $3 × 10 = $30/month
- Rebate: 0.5 pips × $10 × 10 = $50/month
Winner: Rebates
6. Hidden Costs & Considerations
- Cashback Drawbacks:
– May require high minimum volumes.
– Some brokers exclude certain account types.
- Rebate Limitations:
– Only applicable to specific instruments (e.g., major forex pairs).
– May not apply during high volatility.
Final Verdict: Which Saves More?
The choice between forex cashback vs rebates depends on:
✅ Cashback is better if:
- You trade frequently (scalping/day trading).
- You prefer withdrawable earnings.
- Your broker offers competitive per-lot rates.
✅ Rebates are better if:
- You trade fewer but larger positions.
- You prioritize lower spreads/commissions upfront.
- Your broker provides deep rebate discounts.
For maximum savings, some traders combine both—using rebates for cost efficiency and cashback for additional earnings. Always review broker terms and calculate potential savings based on your trading habits.
By understanding these nuances, traders can optimize their cost structures and enhance profitability in 2024’s competitive forex market.
5. Choosing the Right Option for Your Strategy
When deciding between forex cashback vs rebates, the right choice depends on your trading style, frequency, and financial objectives. Both options offer cost-saving benefits, but they cater to different strategies. Understanding how each aligns with your approach will help you maximize savings and optimize profitability.
Key Factors to Consider
1. Trading Frequency and Volume
High-Frequency Traders (Scalpers/Day Traders)
If you execute multiple trades daily, forex rebates may be more advantageous. Rebates are typically paid per trade, meaning the more you trade, the more you earn. For example, a scalper placing 50 trades a day with a $0.50 rebate per lot would accumulate $25 daily—adding up significantly over time.
Low-Frequency Traders (Swing/Position Traders)
If you hold positions for days or weeks, forex cashback might be more beneficial. Cashback is often a percentage of the spread or commission, so even if you trade less frequently, you still earn a consistent return on each transaction.
2. Account Size and Broker Costs
Small Accounts
Traders with smaller accounts may prefer cashback because it provides immediate liquidity. Since cashback is credited to your account, it can help offset trading costs without requiring high volume.
Large Accounts
Rebates often scale better for high-volume traders. Institutional or professional traders with large accounts benefit more from per-trade rebates, as they generate substantial savings over thousands of transactions.
3. Broker Spreads and Commission Structures
- Tight-Spread Brokers: If your broker offers low spreads, cashback might be more valuable since it returns a percentage of the already-small spread.
- Wide-Spread Brokers: If spreads are high, rebates can help mitigate costs by refunding a fixed amount per lot.
For example:
- Cashback Example: A broker charges a 1-pip spread on EUR/USD, and you receive 0.3 pips back as cashback.
- Rebate Example: The same broker offers a $3 rebate per lot traded, regardless of spread.
If you trade 10 lots, the cashback might be $3 (0.3 pips × 10), while the rebate would be $30 ($3 × 10). In this case, rebates are superior for high-volume traders.
4. Short-Term vs. Long-Term Profitability
- Short-Term Traders: Rebates provide immediate per-trade savings, which is ideal for those who rely on quick, frequent profits.
- Long-Term Investors: Cashback compounds over time, making it a better fit for traders who prioritize steady returns.
### 5. Transparency and Payment Frequency
- Cashback Programs: Often credited instantly or weekly, providing liquidity.
- Rebate Programs: May have a delay (monthly payouts), which could affect cash flow for active traders.
## Practical Scenarios: Which One Saves You More?
Scenario 1: The Scalper
- Trades/Day: 50
- Lots/Trade: 1
- Rebate: $0.50 per lot
- Cashback: 0.2 pips (approx. $2 per lot)
Rebate Earnings: 50 trades × $0.50 = $25/day
Cashback Earnings: 50 trades × $2 = $100/day
Verdict: Cashback is better here due to higher per-lot returns.
Scenario 2: The Swing Trader
- Trades/Week: 5
- Lots/Trade: 10
- Rebate: $3 per lot
- Cashback: 0.5 pips (approx. $5 per lot)
Rebate Earnings: 5 trades × 10 lots × $3 = $150/week
Cashback Earnings: 5 trades × 10 lots × $5 = $250/week
Verdict: Cashback still wins, but rebates are competitive.
Scenario 3: The High-Volume Institutional Trader
- Trades/Day: 200
- Lots/Trade: 5
- Rebate: $1 per lot
- Cashback: 0.1 pips (approx. $1 per lot)
Rebate Earnings: 200 × 5 × $1 = $1,000/day
Cashback Earnings: 200 × 5 × $1 = $1,000/day
Verdict: Both are equal, but rebates may offer better scalability with negotiated rates.
Final Decision-Making Checklist
To determine whether forex cashback vs rebates suits your strategy, ask:
1. How often do I trade?
– Frequent traders → Rebates
– Occasional traders → Cashback
2. What’s my typical trade size?
– Large lots → Rebates may scale better
– Small lots → Cashback may be more consistent
3. Does my broker have high spreads?
– Yes → Rebates help offset costs
– No → Cashback enhances savings
4. Do I need immediate liquidity?
– Yes → Cashback (instant/weekly payouts)
– No → Rebates (monthly payouts acceptable)
Conclusion
Choosing between forex cashback vs rebates isn’t a one-size-fits-all decision. Scalpers and high-volume traders typically benefit more from rebates, while swing traders and those with smaller accounts may prefer cashback. Assess your trading habits, broker costs, and financial goals to determine which option maximizes your savings in 2024.
By aligning the right program with your strategy, you can significantly reduce trading costs and enhance profitability over time.
FAQs: Forex Cashback vs. Rebates in 2024
What is the main difference between forex cashback and rebates?
Forex cashback provides fixed refunds per trade, while forex rebates offer percentage-based returns on trading volume or spreads. Cashback is immediate, whereas rebates often accumulate and pay out monthly or quarterly.
Which is better for scalpers: forex cashback or rebates?
- Scalpers benefit more from forex cashback because:
- They execute many small trades, maximizing per-trade refunds.
- Rebates may not offset costs as effectively due to lower individual trade volumes.
Can I use both forex cashback and rebates together?
Yes! Some brokers and cashback/rebate programs allow stacking benefits. However, check terms carefully—some may restrict dual participation.
Do forex rebates work with all brokers?
No. Rebates are typically offered through introducing brokers (IBs) or affiliate programs. Ensure your broker supports rebate partnerships before enrolling.
How do forex cashback programs save me money?
Forex cashback refunds a portion of spreads or commissions on every trade, reducing overall trading costs—especially useful for active traders.
Are forex rebates taxable?
- Rebates may be taxable depending on your country’s laws.
- Some jurisdictions treat them as discounts, while others classify them as income.
- Consult a tax professional for guidance.
Which offers higher savings: forex cashback or rebates?
- High-volume traders save more with rebates (percentage-based).
- Frequent, small-volume traders gain more from cashback.
- Compare your trading habits to determine the best fit.
How do I choose the best forex cashback or rebate program?
- Check payout reliability (reviews, broker reputation).
- Compare rates (cashback per lot vs. rebate percentages).
- Verify eligibility (minimum trade requirements, restrictions).
- Test both (if possible) to see which yields better savings.