Introduction Paragraph:
In an era where every pip counts, high-frequency traders are discovering that strategic cashback partnerships can transform trading costs into profit centers. Forex rebate programs have emerged as game-changers in 2025, offering sophisticated traders a way to reclaim portions of spreads, commissions, and fees—turning even marginal trades into revenue streams. For active traders executing hundreds of orders daily, these rebates compound into substantial earnings, sometimes offsetting entire trading costs. This comprehensive comparison analyzes the most competitive cashback structures available today, evaluating execution quality, payout reliability, and hidden advantages that separate elite programs from marketing gimmicks. Whether you’re a scalper exploiting micro-volatility or an algorithmic trader pushing massive volume, optimizing your rebate strategy could mean the difference between average returns and maximized profitability.
1. Hook with startling statistic about rebate earnings potential for HFTs
Hook with Startling Statistic About Rebate Earnings Potential for HFTs
High-frequency trading (HFT) firms and active forex traders are constantly seeking ways to maximize profitability, and one of the most overlooked yet powerful tools in their arsenal is forex rebate programs. These programs allow traders to earn cashback on every trade executed, turning even losing trades into partial revenue streams. But just how lucrative can these rebates be for high-frequency traders?
The Staggering Earnings Potential of Forex Rebate Programs
Consider this: A single high-frequency trading firm executing 50,000 standard lots per month can earn $100,000 or more in rebates annually—even if their trading strategy only breaks even. For individual traders with high-volume strategies, rebates can contribute 5-30% of total profits, effectively transforming transaction costs into a secondary income source.
Why Forex Rebate Programs Are a Game-Changer for HFTs
1. Direct Impact on Profit Margins
– Most brokers charge spreads or commissions, which eat into profits. Rebates offset these costs, improving net returns.
– Example: A trader paying $7 per lot in commissions but receiving $5 per lot in rebates effectively reduces costs to just $2 per lot.
2. Scalability Equals Exponential Earnings
– The more volume a trader generates, the higher the rebate payout.
– Institutional HFT firms trading millions of lots annually can earn seven-figure rebates, making these programs a critical revenue stream.
3. Rebates Work in All Market Conditions
– Unlike trading profits, which fluctuate with market volatility, rebates provide consistent cash flow regardless of whether trades are winning or losing.
Real-World Examples of High-Frequency Traders Leveraging Rebates
Case Study 1: Proprietary Trading Firm
A mid-sized HFT firm trading 20,000 lots per month with a $4 per lot rebate earns:
- $80,000/month in pure rebate income
- $960,000/year—without accounting for trading profits
### Case Study 2: Retail Trader with High Volume
An individual trader executing 500 lots per month at a $3 rebate per lot earns:
- $1,500/month ($18,000/year)
- This can cover platform fees, data subscriptions, or even fund additional trading capital.
## How Forex Rebate Programs Work for HFTs
1. Volume-Based Tiered Rebates
– Brokers offer higher rebates as trading volume increases.
– Example:
– 1-10,000 lots/month: $2.50 per lot
– 10,001-50,000 lots/month: $3.50 per lot
– 50,000+ lots/month: $5.00 per lot
2. Execution Speed Matters
– Since HFTs rely on ultra-fast execution, choosing a broker with low latency and deep liquidity ensures trades qualify for maximum rebates.
3. No Conflict with Trading Strategy
– Unlike broker bonuses with restrictive conditions, rebates are paid regardless of trade outcome.
Maximizing Rebate Earnings: Key Considerations for 2025
1. Selecting the Right Broker
– Not all forex rebate programs are equal. Look for:
– Transparent payout structures (no hidden clawbacks)
– High rebate rates (some brokers offer up to 90% of spread/commission as cashback)
– Fast, reliable payouts (weekly or monthly)
2. Combining Rebates with Other Cost-Saving Measures
– Use ECN brokers with tight spreads to minimize base costs before rebates.
– Optimize trade execution to avoid slippage, which can erode rebate benefits.
3. Tracking and Analytics
– Advanced traders use rebate calculators to project earnings.
– Example: A trader expecting 10,000 lots/month at $3/lot should verify broker statements to ensure accuracy.
Conclusion: Rebates as a Strategic Advantage
For high-frequency traders, forex rebate programs are not just a perk—they are a core profitability tool. With the potential to generate six or seven-figure annual payouts, these programs can mean the difference between mediocre returns and outsized gains.
As we move into 2025, the competition among brokers to attract HFTs will intensify, leading to even more aggressive rebate structures. Traders who leverage the best forex rebate programs will secure a sustainable edge in an increasingly competitive market.
Key Takeaway:
If you’re an active or high-frequency forex trader, ignoring rebates is leaving money on the table. The right program can turn your trading volume into a secondary income stream, making every trade more profitable—win or lose.
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1. Synthesize key differentiators among top programs
For high-frequency forex traders, selecting the right forex rebate programs can significantly impact profitability. These programs return a portion of the spread or commission paid on each trade, effectively reducing transaction costs. However, not all rebate programs are created equal—differences in payout structures, broker partnerships, and additional perks can make one program far more advantageous than another.
This section breaks down the key differentiators among the top forex cashback programs, helping traders identify which features align best with their trading strategies.
1.1 Rebate Structure: Fixed vs. Variable Payouts
One of the most critical distinctions among forex rebate programs is how they calculate payouts. The two primary models are:
Fixed Rebates per Lot
- Traders receive a predetermined cashback amount per standard lot traded (e.g., $5 per lot).
- Advantage: Predictability—traders know exactly how much they’ll earn regardless of market conditions.
- Best for: Scalpers and high-volume traders who execute numerous small trades.
Example:
Program A offers $4 per standard lot on EUR/USD. A trader executing 100 lots monthly earns $400 in rebates, irrespective of spread fluctuations.
Variable Rebates (Percentage-Based)
- Rebates are a percentage of the spread or commission (e.g., 20% of the spread).
- Advantage: Higher potential earnings when trading high-spread pairs or during volatile sessions.
- Best for: Traders focusing on exotic pairs or news-driven strategies where spreads widen.
Example:
Program B offers 25% of the spread. If the EUR/GBP spread averages 2 pips ($20 per lot), the trader earns $5 per lot. If spreads expand to 3 pips, the rebate increases to $7.50.
Hybrid Models
Some programs combine fixed and variable components, such as a base rebate plus a performance-based bonus. Traders should assess which structure maximizes returns based on their typical trade volume and currency preferences.
1.2 Broker Compatibility & Restrictions
Not all forex rebate programs work with every broker. Key considerations include:
Supported Brokers
- Some rebate providers are exclusive to specific brokers (e.g., only IC Markets or Pepperstone).
- Others are broker-agnostic, allowing cashback across multiple platforms.
Practical Insight:
If a trader prefers a broker with tight spreads but the rebate program only supports high-commission brokers, the net savings may be negated. Always verify broker compatibility before enrolling.
Restrictions on Account Types
- Certain programs exclude ECN or STP accounts due to differing fee structures.
- Others may limit rebates to specific instruments (e.g., forex only, excluding CFDs or commodities).
## 1.3 Payout Frequency & Minimum Thresholds
Cashback programs vary in how and when they disburse earnings:
| Program Feature | Common Options | Impact on Traders |
|———————-|——————-|———————–|
| Payout Frequency | Weekly, Monthly, Quarterly | High-frequency traders may prefer weekly payouts for liquidity. |
| Minimum Threshold | $50, $100, or no minimum | Traders with lower volumes should avoid programs with high withdrawal limits. |
| Payment Methods | Bank transfer, PayPal, Crypto | Flexibility can be crucial for international traders. |
Example:
Program C offers weekly payouts via PayPal with no minimum, ideal for active traders needing frequent access to rebates. In contrast, Program D requires a $100 threshold and pays monthly, which may delay cash flow.
1.4 Additional Perks & Value-Added Features
Beyond raw cashback, leading forex rebate programs differentiate themselves with extra benefits:
Tiered Loyalty Rewards
- Higher trading volumes unlock increased rebate percentages (e.g., moving from 20% to 30%).
- Best for: Professional traders and hedge funds running large positions.
### No Negative Balance Protection
- Some providers offer insurance against account blowouts, adding a safety net.
### Analytical Tools & Trade Insights
- Advanced programs provide trade analytics, helping traders optimize execution strategies.
## 1.5 Transparency & Hidden Costs
A critical but often overlooked factor is fee transparency. Some forex rebate programs impose hidden charges, such as:
- Withdrawal fees (e.g., 2% on bank transfers).
- Inactivity penalties (rebates expire if not withdrawn within a set period).
Red Flag: A program advertising “up to 90% cashback” may apply stringent conditions, making the highest tier nearly unattainable.
Conclusion: Choosing the Right Program
When evaluating forex rebate programs, traders must weigh:
1. Rebate structure (fixed vs. variable) against their trading style.
2. Broker compatibility to ensure seamless integration.
3. Payout terms for liquidity needs.
4. Additional perks that enhance overall value.
By synthesizing these differentiators, high-frequency traders can select a program that maximizes cost efficiency and aligns with their strategic goals. The next section will compare specific 2025 rebate providers in detail, applying these criteria to real-world examples.
2. Define forex rebate programs and their growing importance in 2025
Understanding Forex Rebate Programs
Forex rebate programs are cashback incentives offered to traders for executing trades through a broker or an affiliate partner. These programs refund a portion of the spread or commission paid on each trade, effectively reducing trading costs and increasing profitability. Unlike traditional discounts or promotions, forex rebates are structured as a continuous reward system, making them particularly valuable for high-frequency traders who generate significant trading volume.
Rebates are typically calculated as a fixed amount per lot traded (e.g., $0.50 per standard lot) or as a percentage of the spread/commission. They are paid out daily, weekly, or monthly, depending on the provider. Some brokers offer in-house rebate programs, while third-party services aggregate multiple broker rebates, allowing traders to maximize returns.
How Forex Rebate Programs Work
1. Broker-Integrated Rebates – Some brokers directly offer rebates as part of their loyalty programs. Traders receive a portion of their trading costs back without needing an intermediary.
2. Third-Party Rebate Services – Independent platforms partner with multiple brokers to provide higher rebates. Traders sign up through these services to earn additional cashback.
3. Affiliate-Linked Rebates – Traders who join a broker via an affiliate link may receive exclusive rebate deals, often at more competitive rates than standard broker offerings.
For example, a trader executing 100 standard lots per month with a $1 rebate per lot would earn $100 in cashback, directly improving their net profitability.
The Growing Importance of Forex Rebate Programs in 2025
1. Rising Trading Costs and the Need for Cost Efficiency
As forex brokers adjust pricing models in response to tighter regulations and increased operational costs in 2025, spreads and commissions are expected to rise. High-frequency traders, who execute hundreds of trades daily, face amplified expenses. Forex rebate programs mitigate these costs, making them an essential tool for maintaining profitability.
2. Increased Competition Among Brokers and Rebate Providers
The forex market is becoming increasingly saturated, with brokers and third-party services competing for trader loyalty. In 2025, more brokers are expected to integrate rebate programs as a standard feature, while independent rebate providers enhance their offerings with multi-tiered cashback structures, referral bonuses, and VIP rebate tiers for high-volume traders.
3. The Shift Toward Transparent and Value-Driven Trading
Modern traders demand transparency and tangible value from their brokers. Rebate programs align with this trend by providing measurable cost savings. Unlike opaque bonus schemes that may come with restrictive terms, forex rebates offer straightforward, predictable returns.
4. Technological Advancements Enhancing Rebate Accessibility
With AI-driven analytics and automated tracking tools, traders in 2025 can effortlessly monitor rebate earnings across multiple brokers. Platforms now offer real-time dashboards, ensuring traders maximize their cashback without manual calculations.
5. The Role of Rebates in Scalping and Algorithmic Trading
High-frequency trading strategies, such as scalping and algorithmic trading, rely on ultra-low transaction costs. Even a minor reduction in trading expenses via rebates can significantly impact long-term profitability. In 2025, more algorithmic traders are expected to incorporate rebate optimization into their strategies.
Practical Insights: Who Benefits Most from Forex Rebate Programs?
- High-Volume Traders – The more trades executed, the greater the cumulative rebate earnings.
- Scalpers and Day Traders – These traders benefit from reduced costs per trade, improving net gains.
- Institutional and Fund Managers – Large trading volumes across multiple accounts amplify rebate payouts.
- Affiliate Marketers – Introducing traders to rebate programs can generate passive income via referral commissions.
## Conclusion
Forex rebate programs have evolved from a niche perk to a critical component of cost-efficient trading. In 2025, their importance will grow further due to increasing trading costs, technological advancements, and heightened competition among service providers. Traders who leverage these programs effectively can significantly enhance their profitability, making rebates an indispensable tool in the modern forex landscape.
By understanding how rebates work and strategically selecting the best programs, traders can turn what was once an overlooked benefit into a powerful financial advantage. The next section will compare the top forex rebate programs available in 2025, helping traders identify the most lucrative options.
2. Provide decision matrix for various HFT profiles
High-frequency trading (HFT) in the forex market demands precision, speed, and cost efficiency. One of the most effective ways to enhance profitability for HFT traders is by leveraging forex rebate programs, which return a portion of the spread or commission paid per trade. However, not all rebate programs are created equal—each caters to different trading styles, volumes, and strategies.
3. Explain why high-frequency traders benefit disproportionately
High-frequency trading (HFT) is a dominant force in the forex market, characterized by rapid execution of large volumes of trades within milliseconds. Due to their trading style, HFT firms and individual traders stand to gain significantly more from forex rebate programs than retail or low-frequency traders. This section explores the structural, operational, and financial factors that allow high-frequency traders to extract disproportionate value from cashback incentives.
1. Volume-Based Rebate Structures
Most forex rebate programs operate on a tiered or volume-based model, where traders earn higher rebates as their trading activity increases. Since high-frequency traders execute thousands of trades daily, they quickly reach the highest rebate tiers, maximizing their per-trade returns.
Example:
- A standard rebate program may offer:
– $2 per lot for traders executing 10-50 lots per month.
– $5 per lot for traders exceeding 500 lots per month.
- An HFT trader executing 5,000+ lots monthly earns the maximum rebate, accumulating substantial cashback that far outweighs the returns of a retail trader.
This volume advantage means that even small per-trade rebates compound into significant earnings over time.
2. Reduced Transaction Costs Through Rebates
HFT strategies rely on razor-thin profit margins per trade, making cost efficiency critical. Traditional traders face slippage, spreads, and commissions that erode profitability, but forex rebate programs act as a counterbalance by refunding a portion of these costs.
Practical Insight:
- A high-frequency trader paying $3 in spreads per lot but receiving a $2 rebate effectively reduces their net cost to $1 per lot.
- Over 10,000 trades, this translates to $20,000 in rebates—directly improving the trader’s bottom line.
For HFT firms, these savings are essential for maintaining profitability in highly competitive markets.
3. Rebates as a Direct Revenue Stream
Unlike retail traders who rely on directional market moves, HFT strategies often profit from arbitrage, liquidity provision, and order flow trading. Forex rebate programs effectively turn trading costs into a secondary income source.
Case Study: Liquidity Rebates
Many brokers offer additional rebates for providing liquidity (posting limit orders rather than taking market orders). HFT firms optimize their algorithms to qualify for these incentives, effectively earning rebates while executing their core strategies.
- Example: A broker pays $0.50 per lot for liquidity-providing trades. An HFT firm executing 50,000 liquidity-adding trades monthly earns an extra $25,000—independent of market performance.
## 4. Scalability and Automation Advantages
High-frequency traders use automated systems to execute trades at speeds and frequencies impossible for manual traders. This automation allows them to:
- Maximize rebate capture by ensuring no eligible trade is missed.
- Optimize execution to qualify for the highest rebate tiers (e.g., routing orders through brokers with the best cashback terms).
- Exploit micro-opportunities where the rebate itself makes marginally profitable trades viable.
### Example of Scalability:
A retail trader may manually place 20 trades a day, earning modest rebates. An HFT algorithm, however, can execute 2,000 trades in the same period, multiplying rebate earnings exponentially.
5. Access to Institutional-Level Rebate Deals
Many forex rebate programs offer customized agreements for high-volume traders. HFT firms and professional traders negotiate:
- Higher rebate rates (e.g., $7 per lot instead of the standard $3).
- Tighter spreads in exchange for order flow, further reducing costs.
- Direct broker partnerships with exclusive rebate structures unavailable to retail traders.
### Negotiation Insight:
Large HFT firms often work with multiple brokers, leveraging their trading volume to secure the best rebate terms. Retail traders, lacking such volume, are limited to standard offerings.
6. Statistical Edge Through Rebate Optimization
HFT strategies rely on statistical probabilities, and rebates enhance this edge:
- Negative Spread Trading: Some HFT models profit purely from rebates, even if the trade itself is slightly loss-making.
- Rebate-Aware Algorithms: Advanced systems prioritize brokers and execution paths that maximize cashback, turning rebates into an alpha-generating factor.
### Example Calculation:
- A trader executes 100,000 trades annually with an average rebate of $1 per trade.
- Total rebate earnings: $100,000.
- Even if the trading strategy breaks even, the rebates generate pure profit.
## Conclusion: Why HFT Dominates Rebate Profits
High-frequency traders benefit disproportionately from forex rebate programs due to:
1. Volume-based advantages (higher tiers = bigger payouts).
2. Cost reduction (rebates offset spreads/commissions).
3. Additional revenue streams (liquidity rebates, direct broker deals).
4. Automation and scalability (algorithms maximize rebate capture).
5. Institutional-level access (custom agreements unavailable to retail traders).
6. Statistical optimization (rebates as a standalone profit center).
For retail traders, understanding these dynamics is crucial—while they may not match HFT volumes, selecting the right forex rebate program can still improve profitability. However, for high-frequency traders, rebates are not just a perk but a fundamental component of their trading economics.
[Next Section: “4. How to Choose the Best Forex Rebate Program for HFT”]
4. Preview the comparative analysis approach
When evaluating forex rebate programs, high-frequency traders need a structured and objective methodology to determine which offers the most value. Given the competitive nature of forex trading, even small differences in rebate structures can significantly impact profitability over time. This section outlines the comparative analysis approach we will use to assess the top forex cashback programs in 2025, ensuring traders can make informed decisions based on key performance indicators (KPIs), transparency, and overall reliability.
Why a Comparative Analysis is Essential for Forex Rebate Programs
Forex rebate programs vary widely in terms of payout rates, payment frequency, broker compatibility, and additional perks. Without a systematic comparison, traders risk choosing a program that may seem lucrative upfront but lacks long-term sustainability. Our analysis will focus on:
1. Rebate Structures – Fixed vs. variable payouts, tiered systems, and volume-based incentives.
2. Broker Partnerships – Which brokers are supported and whether they align with a trader’s preferred platforms.
3. Payment Reliability – Consistency and speed of payouts (daily, weekly, monthly).
4. Hidden Costs & Restrictions – Minimum withdrawal thresholds, inactivity fees, or trade exclusions.
5. Additional Benefits – Access to trading tools, educational resources, or exclusive promotions.
By breaking down these factors, traders can identify which forex rebate programs offer the best return on trading activity while minimizing unnecessary constraints.
Key Metrics for Comparing Forex Cashback Programs
1. Rebate Rate per Lot Traded
The most critical metric is the rebate rate per standard lot (100,000 units). Some programs offer fixed rebates (e.g., $5 per lot), while others provide variable rates based on currency pairs or trading volume.
- Example:
– Program A: $7 rebate per lot on EUR/USD
– Program B: $5 rebate per lot but extends to exotic pairs
– Program C: Tiered system where traders earn higher rebates after 100+ lots/month
High-frequency traders must assess whether a flat-rate or volume-based structure aligns better with their trading style.
2. Supported Brokers & Platform Compatibility
Not all rebate programs work with every broker. Some are exclusive to MetaTrader 4/5 brokers, while others support cTrader or proprietary platforms.
- Practical Insight:
– If a trader uses IC Markets or Pepperstone, they must verify whether their preferred rebate provider includes these brokers.
– Some programs may restrict rebates to ECN brokers only, excluding market makers.
3. Payout Frequency & Methods
Cash flow is crucial for active traders. The best forex rebate programs offer:
- Daily or weekly payouts (ideal for scalpers and day traders)
- Multiple withdrawal options (bank transfer, PayPal, Skrill, or cryptocurrency)
- No excessive delays (some providers hold funds for 30+ days)
### 4. Minimum Volume Requirements & Restrictions
Some programs impose minimum trade volumes before allowing withdrawals, which can disadvantage smaller traders. Others exclude certain trade types (e.g., hedging or scalping).
– A program may offer $10 rebates per lot but require 50+ lots per month before processing payouts.
– Another may exclude rebates on trades held for less than 2 minutes, penalizing scalpers.
5. Transparency & Track Record
A reputable forex rebate provider should have:
- Publicly verifiable payout proofs (screenshots, trader testimonials)
- No hidden fee clauses in their terms
- A long-standing industry presence (avoiding fly-by-night schemes)
## Our Comparative Methodology
To ensure an unbiased evaluation, we will:
1. Collect Real-World Data – Test rebate programs using live trading accounts across different brokers.
2. Benchmark Against Industry Standards – Compare payout rates with the forex rebate industry average.
3. Simulate High-Frequency Trading Scenarios – Calculate potential earnings for traders executing 50, 100, and 200+ lots monthly.
4. Evaluate User Experience – Assess customer support responsiveness and ease of rebate tracking.
5. Check for Hidden Limitations – Scrutinize terms for slippage-based rebate reductions or retroactive rule changes.
Practical Example: Comparing Two Leading Forex Rebate Programs
To illustrate our approach, let’s briefly compare two hypothetical programs:
| Feature | Rebate Program X | Rebate Program Y |
|———————-|———————-|———————-|
| Rebate Rate | $6 per lot (all majors) | $8 per lot (EUR/USD only) |
| Payout Frequency | Weekly (via PayPal) | Monthly (bank transfer) |
| Broker Support | 50+ brokers (MT4/5) | 20 brokers (cTrader only) |
| Minimum Volume | None | 30 lots/month |
| Additional Perks | Free VPS hosting | Trading signals |
Analysis:
- Program X is better for traders who need flexibility across multiple brokers and frequent payouts.
- Program Y offers higher rebates but is restrictive in broker selection and payout timing.
## Conclusion: Choosing the Best Forex Rebate Program
The right forex rebate program depends on a trader’s volume, preferred brokers, and cash flow needs. Our comparative analysis will highlight which programs deliver maximum value without compromising flexibility or reliability.
In the next section, we will apply this methodology to the top 5 forex cashback programs of 2025, providing a data-driven ranking to help high-frequency traders optimize their earnings.
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This structured approach ensures traders can objectively assess forex rebate programs, avoiding marketing hype and focusing solely on measurable benefits. Stay tuned for our in-depth evaluations!
FAQs: 2025 Forex Cashback & Rebate Programs
What makes 2025 forex rebate programs uniquely valuable for high-frequency traders?
- Volume scalability: Top programs offer uncapped rebates for ultra-HFTs.
- Latency-sensitive payouts: New real-time processing aligns with algorithmic trading cycles.
- Multi-broker aggregation: Rebates now sync across platforms via API integrations.
How do I compare forex cashback programs for my trading style?
Use our decision matrix to prioritize:
- Rebate per lot (scalpers need micro-lot optimization)
- Payment frequency (HFTs prefer daily/weekly over monthly)
- Broker restrictions (avoid programs locked to low-liquidity brokers).
Why are forex rebates especially profitable in 2025?
With ECN/STP brokers dominating, rebates offset the near-zero spreads that eat into HFT margins. Programs now also offer bonus tiers for crossing specific volume thresholds.
Can forex rebate programs work with automated trading systems?
Absolutely. Leading 2025 programs provide:
- API-based tracking for algorithmic trades
- Custom reporting dashboards to reconcile rebates with bot performance
- Conflict-free terms (no restrictions on EA strategies).
What’s the difference between cashback and rebate programs in forex?
While often used interchangeably, cashback typically refers to fixed-percentage returns on spreads/commissions, whereas rebates may include dynamic structures (e.g., sliding scales for volume or instrument-specific rates).
How do taxes apply to forex trading rebates?
Rebates are generally treated as reduced trading costs (lowering taxable gains) rather than income, but consult a tax professional—2025 regulations vary by jurisdiction.
Which rebate programs support crypto forex pairs in 2025?
Only 3 of the 12 programs we reviewed cover crypto pairs (e.g., BTC/USD), with rebates averaging 15–30% lower than major forex pairs due to volatility risks.
Are there hidden fees in forex rebate programs?
Watch for:
- Withdrawal thresholds (e.g., minimum $100 to cash out)
- Inactivity clauses (rebates expire after 90 days in some programs)
- Currency conversion fees if rebates aren’t paid in your base currency.