What is an Introducing Broker (IB)?
How an IB relationship works
The broker gives the IB a unique referral link or code. Clients who open an account through it are tagged to that IB. The broker handles account opening, identity checks, custody of client funds, order execution and withdrawals. The IB handles the relationship: finding the audience, explaining the service, and supporting clients over time.
The IB is then paid under a written agreement with the broker, most often on a monthly cycle and tracked in an IB portal. What is paid, how it is calculated and when it is paid all depend on that agreement. See IB commission models compared for the common structures.
What IBs typically do
- Build and serve an audience through education, content, communities, events or personal networks.
- Introduce a suitable broker to people who are already looking to trade, with clear disclosure of the risks.
- Support clients with onboarding, platform questions and education, and help them reach the broker's support team.
- Report and reconcile the activity and payouts shown in the broker's IB portal.
Who becomes an IB
IBs are usually experienced traders, trading educators, community and channel owners, influencers, consultants and small agencies. Some operate alone. Others build a team or a network of sub-IBs. You do not have to be a professional trader, but you do need to understand the product well enough to describe its risks honestly.
IB or affiliate: what is the difference?
An affiliate usually sends traffic through a link and is paid a one-off fee per qualified sign-up. An IB usually stays involved with the client and is paid on the client's ongoing trading. The terms overlap in practice, so always read the agreement rather than the label. The full comparison is in IB vs affiliate vs white label.
Benefits and risks of being an IB
The appeal is that you can build an income around an audience you already serve, without building a brokerage. The risks are real and worth weighing before you start:
- Income is not guaranteed. It depends on how much your clients trade, and client activity can fall to zero.
- Clients can lose money. Forex and CFDs are leveraged products. Regulators in several jurisdictions require brokers to publish the share of retail accounts that lose money, and it is often a majority.
- Rules differ by country. Promoting leveraged products is restricted or regulated in some places. Check your local rules before you promote.
- You depend on the broker. Payout terms, changes to rates and what happens if the agreement ends are set by the contract.
- Your reputation is on the line. Promise nothing you cannot control, and never guarantee returns.
Before you start
Read how to become a forex IB for the step-by-step path, and how to choose a broker for your clients before you sign anything.
Quick answers
Does an IB hold client money?
In a typical arrangement, no. Clients deposit with the broker, and the broker holds and returns their funds. The IB is paid by the broker for the activity the referred clients generate.
Do clients pay more when they come through an IB?
Usually the IB is paid by the broker out of its own revenue, and clients trade on the broker's standard conditions. Terms vary, so check the broker's conditions and never assume.
Is IB income guaranteed?
No. It depends on client trading activity, your agreement and market conditions, and it can be zero. MultiPrime does not promise returns.
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.