IB commission models compared
The main models at a glance
| Model | How it works | Tends to suit | Watch out for |
|---|---|---|---|
| Rebate per lot | A fixed amount paid for every lot your referred clients trade. | Active traders and steady volume. | Rates often differ by instrument and account type. |
| Spread or commission share | You receive part of the spread mark-up or the commission the broker charges. | Audiences that trade frequently on standard or ECN-style accounts. | Income moves with spreads and volatility. |
| CPA (cost per acquisition) | A one-off fee when a referred client meets set conditions, such as a first deposit and minimum volume. | Large, fast-moving audiences. | Strict qualification rules, and no income once the client is paid out. |
| Revenue share | You receive a percentage of the revenue the broker earns from your referred clients. | IBs who keep clients active over the long term. | Depends on how the broker defines and calculates revenue. |
| Hybrid | A mix, for example a CPA plus a smaller ongoing rebate or share. | IBs who want early cash flow and ongoing income. | Compare the total value, not just the headline rate. |
Rebate per lot
A lot is a standard trade size, which for most forex pairs is 100,000 units of the base currency. With a rebate model, the broker pays you a set amount for each lot your clients trade, whether they win or lose. It is simple to track and easy to understand, which is why it is common.
Illustrative example only, not an offer: at a rebate of $3 per lot, referred clients trading 400 lots in a month would generate $1,200 in rebates. Real rates vary by broker, instrument and agreement.
Spread or commission share
Instead of a fixed figure, you receive a part of what the broker earns on the spread or on the commission charged on certain account types. Income scales with trading activity and can move with market conditions.
CPA
CPA pays a single fee for each qualified new client. What counts as qualified is set by the broker, usually a verified account, a first deposit above a minimum, and sometimes a minimum traded volume. CPA rewards acquisition, so it favours large audiences over long-term relationships.
Revenue share
Revenue share links your income to the broker's revenue from your clients. It can pay well over time when clients stay active, but the result depends on the broker's definition of revenue, so read that definition closely.
Tiered and multi-level structures
Many brokers raise your rate as monthly volume grows, which is a tiered structure. Some also allow master IB and sub-IB networks, where a master IB earns an override on the clients of the IBs beneath. Both are worth understanding, and multi-level structures may be restricted in some jurisdictions.
What to check in the payout terms
- The exact calculation basis: per lot, per side or round turn, and which instruments and account types are included.
- Payment frequency, currency, minimum thresholds and payment methods.
- Reversals and adjustments, for example when trades are cancelled or activity is found to be abusive.
- Whether rates can change and with how much notice.
- What happens to your earnings and your clients if the agreement ends.
Choosing a model
Match the model to your audience. Frequent traders tend to suit per-lot rebates and shares. Big, fast-moving audiences might suit CPA or a hybrid. Whatever you choose, the reliability of the broker matters as much as the rate, so read how to choose a broker for your clients.
If you already have a deal, MultiPrime can review it against what our broker and liquidity network can offer. See the IB partner program.
Quick answers
What is a rebate per lot?
A rebate per lot is a fixed amount a broker pays an IB for each lot traded by the clients the IB referred. It is paid regardless of whether the clients make or lose money.
What is CPA for an IB?
CPA means cost per acquisition. The broker pays the IB a one-off fee when a referred client meets set conditions, such as a first deposit and a minimum traded volume.
Which IB commission model is best?
There is no single best model. Per-lot rebates and shares suit active traders, CPA suits large fast-moving audiences, and hybrids balance early and ongoing income. Compare total value and payout reliability.
This page is general information, not investment, legal or tax advice. Forex and CFDs are leveraged products and can result in losses. Examples are illustrative and are not offers or guarantees. See the Risk Disclosure.