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IB Agreement

Also known as: Partner Agreement, Introducing Broker Agreement, Introducing Broker Contract

What is IB Agreement?

An IB Agreement is the formal legal contract between a broker and an Introducing Broker that sets out how the IB refers clients and how they are paid. It defines the commission model, payment terms, compliance duties, and the marketing conduct the IB must follow.

The agreement is the single document that turns a handshake into an enforceable business. It names the parties, the effective date, and the territory, then specifies exactly how you earn: a flat CPA per funded client, a percentage revenue share of spread and commission, a hybrid, or a per-lot rebate. Crucially, it also spells out when and how you get paid and the conditions under which the broker can withhold or reverse a payout.

Key takeaways
  • Defines your commission model, payout cycle, and qualification thresholds
  • Clawback and inactivity clauses can reverse or forfeit earnings, read them
  • Termination terms decide whether trailing revenue share survives
  • Rates are negotiable when you can prove high-quality volume
  • Binds you to the broker's marketing and AML/GDPR rules

A typical retail-forex IB deal pays either a CPA of 200 to 1,000 US dollars per qualified client or a revenue share of 20% to 40% of the net revenue those clients generate. The contract states the qualification threshold (for example, a 250-dollar minimum deposit plus one traded lot), the payment cycle (weekly or monthly), and the minimum withdrawal amount.

Beyond money, the agreement binds you to the broker's compliance framework: approved marketing claims, prohibited jurisdictions, GDPR and AML duties, and a ban on guaranteed-profit language. It also covers term, termination, clawbacks for chargebacks or bonus abuse, and what happens to your trailing revenue share if the relationship ends.

How it works

The agreement operates as the rulebook for the whole partnership lifecycle. Once signed and KYC is cleared, the broker issues your tracking links and IB codes; every client who registers under them is attributed to you in the broker's partner CRM. Commissions accrue automatically as those clients deposit and trade, calculated on the model the contract fixed.

Payouts follow the stated cycle and are subject to the contract's conditions: minimum thresholds, clawback windows for refunded deposits or chargebacks, and inactivity rules. If either side terminates, the termination clause decides whether your trailing revenue share continues, freezes, or stops, which is why the exit terms matter as much as the headline rate.

  1. Review the commission model

    Confirm whether you are on CPA, revenue share, or hybrid, and pin down the exact rate, qualification threshold, and how net revenue is defined.

  2. Check payment mechanics

    Note the payout cycle, minimum withdrawal, accepted payment methods, and any processing fees deducted before you are paid.

  3. Read the clawback and inactivity clauses

    Identify what reverses a commission (chargebacks, bonus abuse, early withdrawals) and any dormancy rule that forfeits accrued earnings.

  4. Confirm compliance obligations

    Understand approved marketing claims, restricted jurisdictions, and your GDPR and AML duties toward referred clients.

  5. Negotiate and sign

    If you can evidence quality volume, negotiate the rate or terms, then sign and complete KYC to activate your tracking links.

Why it matters for partnership: The IB Agreement is where your real income is decided: it fixes your commission model, your payout cycle, and the clawback and inactivity clauses that can quietly erase earnings. Read and negotiate it before you send a single lead.

Real World Example

An IB reviewing an IC Markets partner agreement found the choice was a 40% revenue share or a rebate of 3 US dollars per standard lot. Because their audience were active scalpers trading 15 lots a month each, the IB modelled both, saw the rebate paid more on high volume, negotiated it up to 3.50 dollars per lot on the strength of projected flow, and signed the rebate model.

Common IB commission models in the agreement
Model How you earn Best for
CPA Fixed sum per qualified funded client High-volume lead traffic
Revenue share Percentage of client net revenue over time Long-term active clients
Rebate per lot Fixed amount per traded lot High-frequency, high-volume traders
Hybrid Smaller CPA plus ongoing revenue share Balancing upfront and recurring income

Pro Tip

Before signing, ask the broker for a written definition of "net revenue" and "qualified client", the two terms that most often shrink the payout you actually receive.

Common Pitfalls

Skipping the fine print on clawback and inactivity clauses, then losing accrued commissions when a referred client charges back or the account goes dormant.

FAQ

Can I negotiate my IB agreement terms?

Often yes, especially the commission rate, if you can evidence high-quality or high-volume traffic. Smaller brokers are usually more flexible than large regulated ones.

What is a clawback clause and how does it affect me?

A clawback lets the broker reverse a commission if a referred client refunds a deposit, charges back, or abuses a bonus. It protects the broker but can turn a paid commission into a debit.

Do I keep my revenue share if the agreement ends?

It depends on the termination clause. Some contracts continue trailing revenue share, many freeze or stop it, so check the exit terms before signing.

Is an IB agreement the same as an affiliate agreement?

They overlap but differ. IBs usually have an ongoing client-management relationship and often revenue share, while affiliates are typically pure CPA referrers with less client contact.

Do I need a company to sign an IB agreement?

Not always. Many brokers accept individual IBs, but some jurisdictions or higher tiers require a registered entity, and a company can improve payout and tax handling.

What happens if I refer a client in a restricted country?

The broker can void those commissions and may terminate you, because onboarding clients from prohibited jurisdictions breaches the broker's licence conditions.

Sources & further reading
Reviewed by the Revenika Editorial Desk Last updated

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