An Introducing Broker (IB) is an individual or firm that refers clients to a brokerage and is paid ongoing commission tied to those clients' trading activity, usually per lot traded or as a share of the spread. Unlike a one-off CPA affiliate, an IB keeps a direct, continuing relationship with the trader.
The defining feature of the IB model is that earnings recur for as long as the referred client trades. A CPA affiliate is paid a single fixed bounty (say $500) when a client deposits and hits a volume threshold, then earns nothing more. An IB instead earns every time that client trades, so income compounds as the client base grows and stays active.
Key takeaways
IBs earn recurring per-lot or spread-share rebates, not a one-time bounty.
Typical rebates run roughly $2–$8 per standard lot round-turn.
Income scales with active traded volume, so retention beats raw signup count.
Regulated brokers require IB registration and compliance with promotion rules.
Master IBs earn overrides on a network of sub-IBs.
Compensation is almost always volume-based. A common IB rebate is $2 to $8 per standard lot (100,000 units) round-turn, or a slice of the spread expressed in pips. If a broker pays you $5 per lot and your book trades 400 lots in a month, that is $2,000 in rebates for that month alone — independent of whether those traders win or lose, because the payment is generated by activity, not outcome.
IBs range from a single trader-educator with a Telegram channel to a Master IB running a multi-tier network of sub-IBs. Regulated brokers require IBs to register, pass KYC, and follow the same financial-promotion rules as the broker itself, so the role sits at the intersection of marketing, client service, and compliance.
How it works
You register with a broker's partner program and receive a unique IB link or tracking code. Every trader who signs up through it is "tagged" to your account in the broker's CRM, permanently or until an inactivity rule untags them.
As your tagged clients trade, the broker's back office records their traded volume and credits your rebate — typically per lot or as a share of the spread or commission the broker collects. Rebates accrue in a partner dashboard and are paid out on a schedule (often weekly or monthly) once you clear a minimum threshold.
Master IBs add a tier: they recruit sub-IBs, take an override on the sub-IBs' volume, and effectively build a distribution network. The broker sits at the top, funding the whole structure out of the spread and commission its clients pay.
1
Apply and get approved
Register for the broker's IB program, complete KYC/AML and any financial-promotion checks, and agree the rebate schedule (per-lot rate or spread share).
2
Receive your tracking link
The broker issues a unique IB link and referral code that tags every client who opens an account through it to your partner account.
3
Refer and onboard clients
Drive traders to your link via content, education, signals, or community, and help them fund and start trading.
4
Earn on traded volume
As tagged clients trade, rebates accrue per lot in your partner dashboard, regardless of the client's win/loss outcome.
5
Withdraw and reinvest
Clear the payout threshold, withdraw on the broker's schedule, and reinvest in retention and acquisition to grow the book.
Why it matters for partnership: The IB model is the backbone of forex partnerships: it turns referrals into recurring, volume-based income. IBs earn most by keeping clients active — through education, analysis, and service — rather than chasing one-time signups.
Formula
IB Rebate = Rebate per Lot × Total Lots Traded by Referred Clients
Real World Example
An IB with IC Markets on a raw-spread account earns a share of the $3.50 per-side commission — say $2 per round-turn lot. Their community of 60 active traders averages 350 standard lots a month combined, producing about $700 in monthly rebates. Because payment is volume-based, the IB is paid whether individual clients finish the month up or down.
IB vs CPA Affiliate
Model
How you're paid
Payment timing
Client relationship
Best when
Introducing Broker (IB)
Per-lot rebate or spread share on ongoing volume
Recurring, for the client's trading life
Direct and continuing
You retain and engage active traders
CPA Affiliate
Fixed one-time bounty per qualified client
Once, after deposit + volume threshold
Usually none after signup
You drive high volumes of new signups
Pro Tip
Focus on retention over acquisition — a small group of high-volume, loyal traders out-earns thousands of dormant accounts because your income is tied to ongoing volume.
Common Pitfalls
Treating IB clients like CPA leads and ignoring them after deposit; without ongoing education and engagement they stop trading and your recurring rebate dries up.
FAQ
How much does an IB earn per lot?
It varies by broker and account type, but rebates commonly fall between $2 and $8 per standard lot round-turn. Raw-spread accounts pay a share of commission; standard accounts pay a share of the spread.
Is an IB the same as an affiliate?
No. An affiliate is typically paid a one-time CPA bounty per client, while an IB earns recurring commission on the client's ongoing trading volume and usually keeps a direct relationship.
Do I need a licence to be an IB?
Requirements depend on jurisdiction. In some regions IBs must register with or be authorised through the broker or a regulator; regulated brokers always require IB registration, KYC, and compliance with financial-promotion rules.
Do I still earn if my referred clients lose money?
Rebates are paid on traded volume, not client profit or loss, so you are credited whenever tagged clients trade. Never market this as guaranteed income, and never encourage overtrading.
Can a broker take my clients away?
Many programs untag a client after a defined inactivity period (often 3–6 months) or under specific terms. Always read the IB agreement for untagging, caps, and exclusivity clauses.
What is a Master IB?
A Master IB recruits and manages sub-IBs and earns an override on the volume those sub-IBs generate, building a multi-tier referral network on top of their own client book.
A practical playbook for turning a solo IB business into a multi-tier network: how to recruit sub-IBs, structure override commissions, and manage a partner org without …
Commission rate stops being the deciding factor once you're managing sub-IBs at scale — this guide covers the back-office infrastructure a broker needs: tier depth, API …
A practical framework for finfluencers and trading creators to vet, choose, and partner with a broker sponsor without risking their audience or their reputation.
A practical framework for embedding a broker referral inside a paid trading course without the disclosure gaps, conflicts of interest, and credibility damage that turn students …
