Also known as:Profit Sharing, P&L Sharing, B-Book RevShare, Net Revenue Share
What is B-Book Revenue Share?
B-Book Revenue Share is a partnership model in which the introducing broker or affiliate earns a percentage of the net trading losses of the clients they refer. The broker keeps those clients on its internal "B-book" — it takes the other side of their trades rather than passing them to a liquidity provider — and splits the resulting profit-and-loss with the partner.
In a B-book, the broker is the counterparty. When a referred trader loses, the broker gains, and the partner receives an agreed slice of that gain. When a referred trader wins, the broker pays out, and that loss is deducted from the partner's balance. This is fundamentally different from spread- or commission-based sharing, where the partner earns on activity regardless of whether the client profits or loses.
Key takeaways
You earn a cut of referred clients' net losses, not their trading activity.
Payouts can exceed CPA and spread RevShare — but only when clients lose.
Negative carryover means a few winning clients can zero out your income.
Hard conflict of interest — incompatible with education or signal brands.
Legal where disclosed, but scrutinized under FCA, ASIC, and CySEC.
As a concrete example, an affiliate on a 40% B-Book Revenue Share refers a client who deposits $2,000 and eventually loses the full balance through trading. The broker books $2,000 of net client loss and pays the affiliate $800. If instead that client had netted a $500 profit that month, the affiliate's statement would show minus $200 (40% of the $500 loss to the broker), which typically carries forward against future positive months.
Because the payout is tied directly to client losses, this model concentrates a real conflict of interest and attracts regulatory scrutiny. It is legal in many jurisdictions when disclosed, but partners marketing under tier-1 regulators (FCA, ASIC, CySEC) should understand the reputational and compliance exposure before signing.
How it works
When a partner is placed on a B-Book Revenue Share deal, the broker tags that partner's referred accounts to its internal dealing (B-book) flow instead of hedging them externally. The broker's risk desk nets each client's realized and unrealized P&L over the reporting period.
At period end, the broker calculates total net client losses minus total net client wins for the partner's tagged accounts, then multiplies by the agreed percentage — commonly 20%–50%. A positive figure is paid to the partner; a negative figure (clients net-profitable) usually rolls forward as negative carryover that future positive months must clear before any payout resumes.
Sophisticated brokers apply risk management on top: profitable or "toxic" clients may be moved to an A-book (hedged) flow, capping the broker's and partner's downside while also removing the upside on those accounts. Partners rarely control this routing, which is why transparency of the reporting dashboard matters.
1
Agree the split and terms
Negotiate the percentage (often 20%–50%), the reporting period, and how negative carryover is handled before referring any clients.
2
Refer and tag clients
Your tracking link tags each new account to your B-book pool so its P&L is attributed to you.
3
Broker nets client P&L
Over the period the risk desk sums realized and unrealized losses minus wins across your accounts.
4
Apply the percentage
Net client loss is multiplied by your agreed share to produce the gross payout figure.
5
Settle or carry forward
A positive balance is paid out; a negative balance carries into the next period until cleared.
Why it matters for partnership: B-Book RevShare can pay far more per client than spread-based deals, but your income rises only when referred traders lose — a direct conflict of interest that can wreck an education- or signals-based brand if exposed. Weigh short-term payout against long-term trust and disclosure duties.
An affiliate on a 35% B-Book Revenue Share with a market-maker broker refers 20 clients in a month who collectively deposit $40,000. The desk reports $18,000 in net client losses after offsetting a few winners. The affiliate is paid $6,300 for that month — but one client's late $9,000 win the next month pushes the affiliate's balance negative, delaying the following payout.
B-Book RevShare vs Spread RevShare vs CPA
Model
You earn when
Conflict of interest
Income stability
B-Book RevShare
Referred clients lose money
High — you profit from client losses
Volatile (carryover risk)
Spread RevShare
Referred clients trade (any outcome)
Low — aligned with client activity
Recurring, smoother
CPA
Client makes a qualifying deposit
Low — one-off event
Front-loaded, no residual
Pro Tip
Avoid this model entirely if you provide trading education or signals — clients will recognize the conflict of interest and your brand will not survive the exposure.
Common Pitfalls
Ignoring negative carryover: when one referred client wins big, your IB balance can go deep negative, forcing other clients to lose money just to bring you back to zero.
FAQ
Is B-Book RevShare ethical?
It is heavily debated. Many professional IBs avoid it because their financial goals are aligned directly against the success of their clients, and disclosure rules in regulated markets make the conflict hard to hide.
Is B-Book Revenue Share legal?
The B-book model itself is legal in most jurisdictions, and many regulated brokers internalize flow. What matters is proper disclosure, fair execution, and that the broker holds the required license.
How is negative carryover calculated?
If your referred clients are net-profitable in a period, your share of that profit becomes a negative balance that must be cleared by future losing months before you are paid again.
Can I earn more with B-Book RevShare than CPA?
Potentially, over a client's full lifetime, but income is far less predictable. CPA pays a fixed amount up front; B-Book RevShare only pays if clients lose, and can swing negative.
How much do partners typically get?
Percentages usually range from 20% to 50% of net client losses, depending on volume, deposit size, and how much of the client base the broker keeps on the B-book.
Can the broker move my clients off the B-book?
Yes. Many brokers automatically route profitable or high-risk clients to a hedged A-book, which removes both the risk and the revenue on those accounts from your deal.
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