Reviewed by the Partner Federation partnerships team, with two decades of combined experience in online trading and brokerage partnerships. Last updated September 2026.
What is an introducing broker?
An Introducing Broker (IB) is a person or company that refers clients to a licensed forex or CFD broker, without holding client funds, executing trades, or taking on market risk. IB describes the relationship between a partner and a broker — not how that partner gets paid. An IB can be compensated through CPA, revenue share, lot rebate, spread share, or a hybrid of these — the role itself doesn’t determine the payout mechanics.
IB vs. payment models: a critical distinction
“Introducing broker” and “revenue share partner” get used interchangeably across the industry, but that’s imprecise. IB is a role: introducing clients to a broker and managing that relationship over time. Revenue share, CPA, lot rebate, and spread share are payment structures — the mechanics of how a partner gets compensated for playing that role. A partner can be an IB paid on CPA, an IB paid on revenue share, or an IB paid on a hybrid arrangement. What makes someone an IB is the ongoing intermediary relationship, not the payment method.
| Dimension | IB role | Pure affiliate/traffic model |
|---|---|---|
| Relationship depth | Long-term client management, often with direct contact | Transactional traffic delivery |
| Commission trigger | Can be CPA, revenue share, lot rebate, spread share, or hybrid | Usually one-time CPA or a limited revenue share |
| Regulatory status | Often registered as a tied agent in regulated markets | Typically unregulated |
For the full breakdown of this distinction — including a worked example and which one fits how you actually operate — see Introducing Broker (IB) vs. Affiliate.
How master IB / sub-IB networks work
Many IB programs are multi-tier, though not every broker offers this structure (see Master IB Availability). A Master IB builds and manages a network of Sub-IBs while also referring traders directly, earning an override commission on each Sub-IB’s client activity on top of their own direct earnings. A Sub-IB focuses purely on direct referrals and is paid rebates or commission on those clients’ trading — and importantly, a Sub-IB’s own earnings aren’t reduced by the Master IB’s override; the broker pays that override separately.
A simple two-tier example: a Sub-IB refers clients generating 100 lots a month at a $10/lot commission, earning the full $1,000. Their Master IB earns a separate 10% override on that volume — $100 — paid on top, not carved out of the Sub-IB’s payout. In deeper three-tier structures, the total per-lot pool might be split so the direct IB keeps the largest share (e.g. $3.00/lot) while each level above collects a smaller override ($1.00/lot each) for building and supporting the network beneath them. The general pattern: the closer a partner is to the trader, the higher their direct rate; the higher up the chain, the more passive, volume-driven income they collect. Three-or-more-tier networks are common in Southeast Asian and Middle Eastern markets in particular.
For the full breakdown of this structure — including a two-tier and three-tier worked example, and what determines earnings at each level — see Master IB vs. Sub-IB: How Multi-Tier Forex Partner Networks Work.
What determines an IB’s earnings
- Payment model chosen — CPA, revenue share, lot rebate, spread share, or hybrid all produce very different earnings profiles for the same referred client base
- Client trading volume and activity — for any ongoing-payout model, earnings track what referred clients actually do, not just how many sign up
- Network depth — a Master IB with an active Sub-IB network can earn meaningfully more in overrides than a single-tier IB working the same audience alone
- Regulatory tier and jurisdiction — IB registration requirements and typical rate structures both vary significantly by region
Who the IB role suits best
The IB role tends to suit partners building a genuine, ongoing intermediary business rather than running pure lead-gen traffic: people with a trading community, a regional network, or the ability to recruit and support Sub-IBs underneath them. This model is especially entrenched in certain regions — an estimated 40–60% of retail forex accounts in Southeast Asia, the Middle East, and Latin America are opened through IB referrals rather than direct broker acquisition, reflecting how central the relationship-based IB model is to client acquisition in those markets.
Not every broker’s IB program is worth partnering with, though — see Key Factors to Consider When Choosing an IB Broker for what to check before committing traffic to one. 11 Mistakes New Forex IBs Make covers the pitfalls that trip up new partners even after they’ve picked a good one.
Pros and cons of the IB role
| Pros | Cons |
|---|---|
| Flexible — can be paired with whichever payment model fits the partner’s traffic and risk appetite | Often comes with more relationship-management overhead than a pure traffic/affiliate role |
| Master IB structures let experienced partners build passive, network-driven income | Multi-tier networks add complexity to tracking and reconciling who’s owed what |
| Strong regional/community networks can significantly outperform pure paid-traffic acquisition | May require formal regulatory registration (e.g. as a tied agent) depending on jurisdiction |
Compliance and regulatory status
Because the IB role often involves an ongoing relationship with the client — not just a one-time referral — some regulators require IBs to register formally (for example, as a tied agent or appointed representative) rather than operate as an unregulated affiliate. Requirements vary by jurisdiction and by how much client-facing activity the IB actually performs. As with every payment model on this site, the same prohibited practices apply regardless of the IB/affiliate label: see Partner Fraud & Prohibited Practices for the full detail on wash trading, self-referral, and volume manipulation across ongoing-payout models.
Before committing to any specific broker’s IB program, it’s worth independently verifying it first — see How to Verify a Broker’s IB Program Is Legitimate and How to Spot a Fake or Predatory Partner Program.
FAQ
Is an IB the same as a revenue share partner?
Not necessarily. IB describes the relationship — introducing and managing clients on an ongoing basis — while revenue share is one of several ways an IB can be paid. Many revenue share partners are also IBs, but an IB can just as easily be paid via CPA, lot rebate, spread share, or a hybrid deal.
What’s the difference between an IB and an affiliate?
The terms overlap heavily in practice, but IB traditionally implies a deeper, longer-term client relationship and sometimes formal regulatory registration, while “affiliate” more often describes a traffic-delivery role paid on a simpler CPA or capped revenue share basis.
How do master IB and sub-IB commissions work?
A Sub-IB earns their full rate on clients they refer directly. A Master IB earns a separate override on top of that — paid by the broker, not deducted from the Sub-IB’s payout — for building and supporting the network beneath them.
Can an IB choose how they’re paid?
Often, yes, within what the broker offers — many brokers let IBs choose between CPA, revenue share, lot rebate, spread share, or a hybrid combination, sometimes with minimum volume or track-record requirements for the more favorable options.
Do IBs need to be regulated?
It depends on the jurisdiction and the IB’s level of client-facing activity. Some regulators require formal registration (e.g. as a tied agent); others allow IBs to operate under the broker’s own regulatory umbrella with lighter requirements.
What’s a typical split between a master IB and a sub-IB?
There’s no universal standard, but overrides in the 10% range on a sub-IB’s generated commission are commonly cited, with three-or-more-tier networks splitting a fixed per-lot pool progressively smaller further up the chain.