IC Markets Rebates vs Raw Spreads: Which is More Profitable?
When it comes to reducing trading costs and maximizing profits, IC Markets offers two compelling options: Raw Spreads Accounts and Rebate Programs. Each has its own advantages — but which one gives you more financial leverage? Should you choose ultra-tight spreads or rebates per lot? The answer depends on your trading strategy, volume, and cost sensitivity.
In this article, we compare IC Markets Rebates vs Raw Spreads, breaking down the numbers to help you decide which one is more profitable in 2024.
🏦 Understanding IC Markets: A Quick Overview
IC Markets is an Australian-based broker known for its institutional-grade execution and ultra-low spreads. It offers multiple account types to suit all kinds of traders — including Standard, Raw Spread, and cTrader accounts.
The Raw Spread account is especially popular with scalpers, day traders, and algorithmic traders due to spreads starting from 0.0 pips. At the same time, IC Markets allows traders to partner with rebate platforms to get a portion of their trading commission refunded — offering an opportunity to reduce costs further.
💰 What Are Raw Spreads?
Raw spreads refer to the true market spread — meaning you pay exactly what liquidity providers quote, with no markup. This often results in 0.0 to 0.2 pips on major pairs like EUR/USD. However, there’s a commission fee:
- $3.5 per side ($7 round turn) per standard lot.
🔍 Example:
- Spread on EUR/USD = 0.1 pip
- Commission = $7 per lot
- Total cost = Spread + Commission = ~$8
💸 What Are IC Markets Rebates?
Rebates are cashback rewards given for every trade you execute. They are calculated per lot traded and are paid by IC Markets directly or via third-party partners like CashbackForex, PaybackFX, or TradersUnion.
Typical rebate rates:
- $1.50 to $2.50 per lot, depending on the partner
- Paid daily, weekly, or monthly
Rebates are available on both Raw Spread and Standard Accounts, but the savings are often more noticeable on Raw Spread accounts due to the tighter pricing.
⚖️ Raw Spreads vs Rebates: Side-by-Side Comparison
| Feature | Raw Spread (No Rebate) | Raw Spread + Rebates |
|---|---|---|
| Spread (EUR/USD) | 0.1 pips | 0.1 pips |
| Commission per lot | $7 | $7 |
| Rebate per lot | $0 | $1.50 to $2.50 |
| Net trading cost | ~$8 | ~$5.50 to $6.50 |
| Payout method | N/A | PayPal, Skrill, Crypto, etc. |
| Payout frequency | N/A | Weekly / Monthly |
| Broker performance | Identical | Identical |
✅ Winner: Raw Spread + Rebates (Lower net cost)
📊 Profitability Analysis: Which Saves You More?
Let’s take a scenario:
- You trade 50 lots/month on EUR/USD
- Raw Spread account cost = 50 × $8 = $400
- Raw Spread + Rebate ($2/lot) = 50 × ($8 – $2) = $300
- Monthly savings = $100
- Yearly savings = $1,200
Over time, rebates make a significant difference — especially for high-frequency or large-volume traders.
🧠 Important Considerations
- Rebates work best on Raw Spread accounts — because spreads are tighter and commissions are fixed
- Execution speed and slippage are identical across both setups
- Rebates do not affect trading performance — they simply refund part of your trading cost
- Some rebate partners offer referral bonuses or tiered structures, further increasing value
- Always register with a broker via the rebate platform to activate the reward
🚫 When Raw Spreads Alone May Be Better
- If you’re trading very low volume (less than 5 lots/month), the difference may be too small to notice
- If rebate platforms are not supported in your region, you may have to rely solely on IC Markets’ pricing
- For some traders, simplicity matters — fewer systems, fewer partners
🔚 Final Verdict: Which is More Profitable?
If you’re trading with IC Markets, using a Raw Spread Account combined with a reliable rebate partner is almost always more profitable than using Raw Spreads alone. The math speaks for itself: you reduce your effective commission while still benefiting from tight spreads and world-class execution.
More trades = more cashback = more savings = more profit.