Broker cashback tiers: how rebates are calculated

In FX, “cashback” means returning part of the commission you paid on trades. The money comes from the share a broker pays an introducing broker (IB), and the PAMM Iran referral programme passes part of it back to the user. Broker cashback tiers are the percentage table that shows how much of that commission returns to you at each level of trading volume or referral network size.

How broker cashback tiers are defined

Each programme has its own tier structure, usually based on one of two foundations:

• Monthly trading volume: the higher your monthly volume, the higher the rebate percentage.
• Referral network size: as the number of active users registered through your link grows, your tier rises.

The percentage applies to the actual commission paid, not to trade volume. A trade with a wider spread generates more rebate — a detail worth including in your real cost calculation.

Cashback vs bonus vs IB rebate

Timing and payout path

1. Broker settlement: the broker calculates commission and pays the introducer first; cashback is calculable after that step.
2. Calculation and record: the platform computes your share by active tier and shows it in the panel.
3. Withdrawal request: submit from My cashback and the amount moves to your wallet or bank account.
4. Tracking: each request’s status and the per-period breakdown stay visible in the panel.

What to ask before joining

• Each tier’s rate and threshold: the final number matters less than the condition to reach it.
• Calculation basis: commission, spread or swap? Programmes differ.
• Minimum withdrawal and settlement cycle: a $5 rebate that cannot be withdrawn monthly is of little practical value.
• Termination terms: if the broker ends the relationship, what happens to pending cashback?
• Tax and local rules: payouts fall under your local tax regulations.

A monthly cashback calculation example

Suppose your tier pays 40% of commission, and in a month you paid $120 in commission across 60 trades. The rebate is $48 — roughly $0.80 per trade. That number explains why cashback should be read as a cost reduction, not income: it lowers the friction of trading, and it grows only when traded volume grows, which is not a goal by itself. Add the spread cost for the same month to see the full picture.

Frequently asked questions

Is cashback paid on losing trades too?

Cashback is based on trading commission, not profit or loss, so losing trades can still generate rebates. That makes cashback a cost-reduction tool, not an income source.

Is cashback guaranteed?

No. The amount depends on volume and broker rules; there is no fixed number for everyone.

Can I join several cashback programmes at once?

For a single account, usually only one introducer can be registered. If you hold accounts at several brokers, each can have its own programme.

What causes removal from a programme?

Fraud, artificial trading to generate commission, multiple accounts under one identity and broker-terms violations are common reasons.

The bottom line

Broker cashback tiers reduce trading costs — they are not a way to earn without trading. Read the percentage alongside the tier threshold, calculation basis and settlement cycle. Full guide: cashback help center.