What are the Disadvantages of Rebates for Traders?

[Suba]

In the world of trading, whether in crypto, stocks, or forex, we often encounter the term "rebate," where traders receive a refund of a portion of their transaction fees (spread). When we make a trading transaction, a portion of the fees are returned to our account, making rebates similar to cashback.

While seemingly simple and beneficial for traders, there are also disadvantages, such as overtrading, often lacking transparency in rebates, trading addiction, and more.

 

[magnus2022]

I don't think a trader will because of rebates continue trading when he is not well disposed to trade. Rebates use to be around .01% of trade's volume. Moreover, only handful of trading platforms offers rebates!