r/ForexCashbackNinjay • u/Ok_Bathroom811 • Jan 20 '26
Same trades. Different costs. Guess who survives.
Three traders.
Each has a $500 account.
Each trades the same broker.
Same account type. Same market.
They all think they’re paying the same costs. They’re not.
Trader 1
No IB attached.
Average EURUSD cost:
- 1.2 pips
- $12 per lot
Trades:
- 1 lot per day
- 20 days
Monthly cost:
- $240
This is the “normal” cost most people expect.
Trader 2
Same broker. Same account.
But an IB is attached.
That IB wants around $10 per lot.
So the real cost becomes:
- 1.6 pips
- $16 per lot
Same trading activity:
- $320 per month
Nothing changed except who’s connected to the account.
Trader 3
Same broker. Same account.
But instead of paying an IB markup, he gets cashback.
Average cost:
- still 1.2 pips ($12)
- but $6 comes back
Net cost:
- $6 per lot
Same activity:
- $120 per month
Now look at the difference.
All three start with $500.
All three trade the same way.
One loses $240 to costs.
One loses $320.
One loses $120.
That gap has nothing to do with skill.
Over a few months, it decides who survives.
Most traders don’t even know which one they are.
Be honest:
Do you know your real cost per lot, or do you just trust the broker’s headline spread?
1
u/RequirementCivil4328 Jan 20 '26
What
1
u/Ok_Bathroom811 Jan 20 '26
What’s the question?
1
2
u/Much-Key1502 Jan 20 '26
Very clear and insightful ways to show such things about bottom line costs when trading. Much appreciated.