Intermediate

Commission Mark-up

Also known as: Mark-up, Commission Markup, IB Mark-up, Added Commission

What is Commission Mark-up?

Commission mark-up is an extra per-trade fee an Introducing Broker (IB) adds on top of the broker's standard trading commission. The broker charges the client the combined amount, keeps its base commission, and passes the marked-up portion back to the IB as compensation.

Unlike a rebate model, where the IB gets a share of a commission the client would have paid anyway, a mark-up increases the total cost the client pays. The broker's raw commission on a Raw/ECN account might be $3.50 per lot round-turn; the IB sets a $3.00 mark-up, so the client is charged $6.50 per lot and the IB collects the $3.00 difference. Most broker back offices (cTrader, MetaTrader with an IB module, or the broker's partner portal) let the IB configure this mark-up per symbol group, per account type, or per client tier.

Key takeaways
  • Mark-up is added on top of broker commission and raises the client's total cost.
  • You keep 100% of the mark-up — no revenue share back to the broker.
  • Configured per lot, per symbol group, often on Raw/ECN accounts only.
  • Higher mark-up funds you but shortens client survival — price to your value.
  • Blend it with rebates and CPA rather than relying on it alone.

The economics are simple but sharp. If your clients trade 400 standard lots a month collectively at a $3.00 mark-up, that is $1,200 in monthly revenue with zero share given back to the broker. But the same lever that funds you also raises your clients' break-even point on every trade, which directly affects how long they survive and keep trading.

Mark-up sits inside the broader IB compensation toolkit alongside spread mark-up (widening the spread instead of adding commission), volume rebates, and CPA. Serious IBs blend these, using a modest mark-up on active traders while relying on rebates or CPA elsewhere.

How it works

You configure a mark-up in the broker's IB/partner portal, usually as a fixed dollar amount per lot per side (or round-turn) on a chosen symbol group. When a client under your link trades, the broker's system charges the client the base commission plus your mark-up, records the split, and credits the mark-up portion to your IB balance in real time or at end-of-day reconciliation.

Because the mark-up is embedded in the commission the client sees on their trade confirmation, it is transparent in the sense that it appears as a commission line — but the client generally cannot see how much of it is broker versus IB. Payout is typically settled weekly or monthly by wire, Skrill/Neteller, or the broker's internal wallet, and Master IBs can set sub-IB mark-ups beneath their own.

  1. Get IB approval and a mark-up-enabled account

    Sign the broker's IB agreement and confirm your account type supports commission mark-up (usually Raw/ECN accounts, not fixed-spread ones).

  2. Set the mark-up in the partner portal

    Choose a per-lot amount per symbol group. Many IBs start at $1.00–$3.00 per lot round-turn on FX majors.

  3. Route clients under your link or IB code

    Clients who register through your tracking link or enter your IB code inherit the marked-up pricing automatically.

  4. Monitor client cost and activity

    Watch churn and average trade frequency; a mark-up that is too high shows up as shorter client lifespans.

  5. Reconcile and withdraw

    Confirm the mark-up totals against your trade report each cycle, then withdraw via the broker's supported payout rails.

Why it matters for partnership: Mark-up gives you direct, per-lot control of your margin without waiting for a broker rebate schedule. The trade-off is retention: every dollar of mark-up raises the client's cost per trade, so price it against the value you actually add.

Formula
Client Commission = Broker Base Commission + IB Mark-up (per lot)
Real World Example

An IB partnered with IC Markets adds a $2.50 per-lot round-turn mark-up on the Raw Spread account, where the base commission is $7.00 per lot round-turn. Clients therefore pay $9.50 per lot. With 15 active clients trading a combined 250 lots per month, the IB earns 250 × $2.50 = $625 monthly from mark-up alone, on top of any separate rebate arrangement.

Mark-up vs. Volume Rebate vs. CPA
Model Who pays extra Payout basis Best for
Commission Mark-up Client pays more Per lot on top of base Active traders who value your service
Volume Rebate No extra cost to client Share of broker's commission High-volume, price-sensitive clients
CPA No extra cost to client Fixed fee per funded client Fast upfront cash from paid traffic

Pro Tip

Only apply a mark-up when you deliver justifiable value — premium signals, coaching, or tools — and benchmark your total client cost against competing brokers so you never price your clients into leaving.

Common Pitfalls

Marking commissions up so aggressively that clients calculate their true per-trade cost, feel overcharged, and migrate to a cheaper IB or broker.

FAQ

Does a commission mark-up cost my clients more than a rebate?

Yes. A mark-up adds to the price the client pays, while a rebate is a share of a commission the client would already have paid. Mark-up raises the client's break-even on each trade.

How much mark-up can I add?

The broker sets a ceiling, but competitive practice on FX majors is roughly $1–$3 per lot round-turn. Push past that and your clients' costs become uncompetitive versus other brokers.

Can clients see how much I mark up?

They see a total commission line on their trade confirmation, but usually cannot see the split between the broker's base fee and your mark-up. Being transparent when asked builds trust.

Does mark-up work on fixed-spread accounts?

Generally no. Mark-up is a commission add-on, so it applies to commission-based Raw/ECN accounts. On fixed-spread accounts, IBs typically earn through spread mark-up or rebates instead.

Is commission mark-up allowed by regulators?

IB compensation is permitted under most regulators, but pricing and IB arrangements must be disclosed to the broker and handled per the broker's regulated framework. Never promise clients guaranteed returns to justify higher costs.

Can a Master IB set mark-ups for sub-IBs?

Yes. Master IBs typically configure a mark-up layer above the sub-IB's own compensation, so each level in the chain earns from the same client's volume.

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