Introducing Broker (IB)

An Introducing Broker is a partner who refers new traders to a Forex or CFD brokerage in exchange for ongoing commissions, typically calculated on the trading volume or revenue generated by those referred clients.

What it means in practice

An Introducing Broker (IB) acts as an intermediary between a brokerage and potential traders. The IB refers clients to the broker, provides initial education or support, and earns commissions based on the trading activity of those referred clients. Unlike standard affiliates who typically earn a one-time CPA (Cost Per Acquisition), IBs operate on an ongoing revenue relationship.

IB commission structures are more complex than standard affiliate deals. Common models include Lot-Based Commission, spread-based commissions, and tiered structures where rates increase with volume. Many brokers also support multi-level IB hierarchies, where a Master IB earns overrides on the activity generated by downstream Sub-IBs. Payouts in these structures are often structured as an IB rebate per traded lot.

The IB model is deeply embedded in the Forex industry because of the relationship-driven nature of trader acquisition. IBs often provide localized support, education, and market analysis to their referred traders, creating a value-add that goes beyond simple traffic referral. This relationship-based approach leads to higher retention and lifetime value compared to standard affiliate traffic.

How Introducing Broker (IB) works across industries

See how introducing broker (ib) is applied in the verticals Track360 supports, from qualification logic and payout structure to the operational context behind each model.

Forex

Introducing Broker (IB) in Forex partner and IB models

In Forex, IBs are the primary partner channel for most brokerages. Commission models include lot-based (e.g., $5-15 per standard lot), spread markup (adding pips to the spread), and hybrid structures combining CPA with ongoing volume-based payouts. Multi-tier IB networks can run 3-5 levels deep, with each level earning a decreasing [IB rebate](/glossary/ib-rebate) rate. Regulatory bodies like CySEC, FCA, and ASIC have specific rules governing IB relationships and disclosure requirements.
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How Track360 handles this

Track360 integrates with MT4/MT5 to capture trade data in real-time, enabling automated Lot-Based Commission and symbol-based calculations across IB hierarchies. Operators can configure per-partner deal terms, split rules, and volume-based tier progressions without manual spreadsheet work.

FAQ

Frequently Asked Questions

Common questions about introducing broker (ib), how it works in affiliate programs, and where it shows up across Track360's supported verticals.

An affiliate typically earns a one-time CPA payment for each referred customer. An Introducing Broker earns ongoing commissions based on the trading activity of their referred clients, creating a long-term revenue relationship. IBs often provide additional services like localized support and education to their referred traders.

Related Terms

Forex & IB

Lot-Based Commission

Forex
Read Definition

Lot-based commission is a broker affiliate or IB payout model where partners earn a fixed amount for each traded lot generated by their referred clients.

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Forex & IB

Sub-IB

Forex
Read Definition

A Sub-IB is an introducing broker recruited by another IB (the master IB) rather than directly by the broker. Sub-IBs operate under a multi-tier structure where commissions cascade from the broker through the master IB layer.

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Forex & IB

Master IB

Forex
Read Definition

A Master IB is an introducing broker who recruits and manages a network of Sub-IBs beneath them. The Master IB earns override commissions on the trading volume generated by their downstream partners in addition to commissions on their own direct referrals.

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Forex & IB

IB Rebate

Forex
Read Definition

An IB rebate is a payment that an introducing broker passes back to referred clients, typically funded from the IB's own commission share. Rebates are used to attract and retain active traders by reducing their effective trading costs.

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Forex & IB

IB Commission Tier

ForexProp Trading
Read Definition

An IB commission tier is a structured level within a forex broker's introducing broker program that determines commission rates based on referred client volume, trading activity, or revenue generation.

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Forex & IB

Swap Rate

Forex
Read Definition

A swap rate is the interest charged or credited for holding a leveraged forex position overnight, based on the interest rate differential between currencies.

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Forex & IB

Forex IB vs Affiliate

Forex
Read Definition

A Forex IB manages ongoing client relationships and earns from trading activity. A Forex affiliate drives referrals and earns per conversion. The key difference is depth of involvement.

Forex & IBRead More →
Forex & IB

IB Management Platform

Forex
Read Definition

An IB management platform is software that automates introducing broker onboarding, commission calculation, sub-IB hierarchies, and payout processing for forex operators.

Forex & IBRead More →
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