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Net Deposits

Also known as: Net Funding, Net New Deposits, NND, Net Deposit Value

What is Net Deposits?

Net Deposits are a referred client base's total deposits minus their total withdrawals over a period. It measures the money that actually stayed on the platform, not the gross amount that ever arrived, and it is the figure brokers use to judge a partner's real contribution.

Gross deposits flatter a partner; net deposits reveal the truth. If your clients deposit $100,000 in a month but withdraw $90,000, your gross looks strong while your net is only $10,000. Because trading capital left on the platform is what generates spread, commission, and B-Book exposure for the broker, net deposits — not gross — drive bonus tiers, partnership valuations, and negotiating power.

Key takeaways
  • Net deposits = gross deposits minus withdrawals.
  • Brokers value net, not gross — money that stays is what counts.
  • The figure can go negative in heavy-withdrawal months.
  • A falling trend flags execution, service, or trust problems.
  • Retention, not just acquisition, is what grows this number.

The number can go negative. In a month where clients withdraw more than they deposit — after a losing streak, a payout run, or a confidence wobble — net deposits for that period are below zero even if you referred new funds. Watching net deposits trend over time therefore doubles as an early-warning signal for client satisfaction and retention.

Brokers lean on net deposits precisely because it is hard to game: churning money in and straight back out does not move it.

How it works

The broker's back office logs every deposit and withdrawal tied to your referral tag and nets them over the reporting period. That single figure feeds several downstream decisions: which volume-based bonus tier you land in, how a broker values your book if you renegotiate, and whether you trigger any net-funding milestones in your agreement.

Because the metric rewards money that stays, it structurally pushes partners toward retention rather than pure acquisition. A partner who refers fewer but longer-committed clients can post a higher net-deposit figure than one who churns large gross deposits that quickly leave. Watching the trend month over month lets you catch a retention problem — poor execution, slow withdrawals, weak support — before it shows up in your commissions.

  1. Aggregate deposits

    Sum all funds your referred clients paid into their accounts during the period.

  2. Aggregate withdrawals

    Sum all funds those same clients withdrew during the period.

  3. Compute the net

    Subtract total withdrawals from total deposits to get net deposits for the period.

  4. Map to tiers

    Compare the net figure against the broker's bonus or valuation thresholds.

  5. Watch the trend

    Track net deposits month over month to catch retention or satisfaction problems early.

Why it matters for partnership: Brokers set bonus tiers and partnership value on net deposits, not gross, so retention and client trust are what actually pay. A falling net-deposit trend is also an early warning that clients are unhappy with execution or service.

Formula
Net Deposits = Total Client Deposits - Total Client Withdrawals
Real World Example

An IB refers clients who deposit $250,000 into an ASIC-regulated broker over a quarter but withdraw $180,000 after a volatile run, leaving net deposits of $70,000. That $70,000 — not the $250,000 gross — is what places the IB in the broker's mid bonus tier. When the IB improves onboarding and withdrawal support the next quarter, withdrawals fall and net deposits climb to $140,000, lifting them into the higher tier.

Gross vs net deposits
Aspect Gross Deposits Net Deposits
What it counts All money deposited Money deposited minus withdrawn
Can it go negative? No Yes, in heavy-withdrawal periods
What it rewards Acquisition activity Retention and client trust
Used by brokers for Headline volume Bonus tiers and book valuation

Pro Tip

Track net deposits weekly rather than monthly; a sudden divergence between healthy gross and sinking net usually means a service or execution problem you can fix before it drags your commissions down.

Common Pitfalls

Chasing new deposits while ignoring clients who are steadily withdrawing, so your gross looks healthy while your net quietly collapses and your bonus tier slips.

FAQ

Why do brokers care about net deposits over gross?

Because only money that stays on the platform generates trading activity and revenue. Gross deposits that are quickly withdrawn cost the broker processing fees without producing lasting value.

Can net deposits be negative?

Yes. In a period where clients withdraw more than they deposit — often after losses or a payout run — the net figure drops below zero even if you referred new funds.

Do net deposits affect my commission directly?

Sometimes directly through net-funding bonuses, and often indirectly by setting the tier that governs your rates. Either way, they shape your negotiating position with the broker.

How is this different from Assets Under Management?

Net deposits track flows in and out over a period; AUM is the total balance sitting on the platform at a point in time. A rising net-deposit trend generally feeds a rising AUM.

How can I improve my net deposits?

Focus on retention — smooth onboarding, realistic expectations, responsive support, and helping clients avoid blow-ups — so fewer of them withdraw and leave. Retained clients keep the net figure high.

Does a client's trading loss count as a withdrawal?

No. A trading loss reduces the client's balance but is not a withdrawal of funds off the platform, so it does not directly lower net deposits — only actual withdrawals do.

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

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