Introducing broker commissions explained

Introducing broker commissions explained

Reading time: 9 minutes

For the time introducing brokers (IBs) invest in referring, educating and supporting clients, brokers offer commissions and other incentives. IB commissions are payments brokers make to partners for referring clients, often based on the trading activity those clients generate. Rebates typically represent a portion of the spreads or trading commissions generated by referred clients, which the broker pays to the IB under the programme's terms. The principle is straightforward: you refer traders to a broker and earn a share of the business they generate.

An introducing broker may be a trading educator, content creator, community leader, review site or experienced trader who introduces clients through their own network. Some provide ongoing education and client support, while others focus primarily on referrals.

IBs differ from affiliates in how they are typically compensated. Affiliates generally focus on client acquisition, with brokers often paying a one-off cost-per-acquisition (CPA) commission once a referred client meets specified criteria, such as opening a live account, depositing funds and trading a minimum volume. By contrast, IBs can earn ongoing commissions based on their referred clients' trading activity, subject to the programme's terms. This model can suit partners who build and maintain an engaged trading community.

FP Markets also offers loyalty tiers within its IB programme, with rewards linked to the applicable programme terms and trading activity. Some brokers offer hybrid programmes that combine CPA payments with trading-volume-based rebates. Understanding these different payment models also helps answer a question many new partners ask: how much do forex IBs earn?

How IB rebates are paid

Brokers may pay introducing brokers (IBs) rebates based on the trading activity of their referred clients. These payments are commonly calculated per traded lot or using a points-based structure, although the calculation and rates vary by broker, instrument and account type. Higher eligible trading volume can generate greater rebates, subject to the programme's terms.

Unlike a one-off acquisition payment, volume-based rebates can provide an ongoing source of income while referred clients continue trading. For example, a client who remains active for two years may generate rebates throughout that period, provided the programme's eligibility requirements are met. By contrast, a client who opens an account but never trades generally generates no trading rebates under this model. IBs therefore often focus on attracting and retaining active traders.

Industry data provide useful context for the scale of the retail trading market. Finance Magnates estimates that retail brokers handled US$30.4 trillion in average monthly FX and other trading volume in Q2 2026, down 9.3% from the previous quarter's record level of US$33.5 trillion. This illustrates how trading volumes can fluctuate over time. The same research estimates that the industry had 7.39 million active retail brokerage accounts during the quarter. While this represents a substantial potential client base for IBs, actual rebate income depends on referred clients' trading activity, the applicable commission rates and the programme's terms.

Who can earn IB commissions?

Individuals and businesses with an online presence or a network of traders can become IBs. That includes education websites, broker review sites, trade clubs, bloggers and social media creators. Some IBs work purely by recommendation, while many start out as traders and refer friends and colleagues, then grow through word of mouth. If you are already trading with a broker, check their rules, terms and conditions. You might need to register separately through their IB programme. Once approved, each IB usually receives a unique referral number and onboarding links.

The FP Markets IB programme sets no limit on the number of referred accounts and pays commissions in real time. Rates depend on three things: account type, traded instruments and the IB’s loyalty level. The default rebates at FP Markets for FX and metals on a USD client account are as follows:

Every partner starts at the Silver level. They can then move up as they meet volume or deposit criteria. Platinum partners can also discuss a VIP deal with their account manager. Rates for indices and commodities are set separately, so IBs will need to ask the team for those figures. Partners track referrals and withdraw commissions through the IB portal, which keeps reporting in one place. This makes it easier to see which clients drive volume and which have gone quiet.

Raw and Standard accounts

Raw accounts pay a flat dollar amount per lot. Standard accounts pay in points, so the dollar value depends on the instrument and the client’s account currency. A partner whose audience prefers one account type should check the matching column before comparing programmes.

How much do forex IBs earn?

So, how much do forex IBs earn in practice? There is no fixed average, as earnings depend on eligible trading volume and the applicable rebate rate. To illustrate how the FP Markets IB programme works, consider the following examples using the published Raw account rates for FX trades in USD-denominated client accounts. You can estimate potential earnings using the calculator in the Partners Portal:

• 500 lots in a month at Silver: US$1,000.
• 2,000 lots in a month at Silver: US$4,000.
• 2,000 lots in a month at Platinum: US$4,800, which is 20% more than Silver for the same eligible trading volume.

Now, consider a smaller client network. Suppose an IB has 20 active clients, each trading 10 eligible lots per month. That amounts to 200 lots. At the Silver level, the IB would earn US$400 per month from this activity. At Platinum, the same volume would generate US$480. Assuming trading activity and rebate rates remain unchanged for 12 months, the difference would total US$960. If the network doubled while trading activity per client and the applicable rebate rate remained constant, potential rebate income would also double.

These figures are illustrative, not guarantees of earnings. Actual income depends on the number of active clients, their trading frequency and volume, the account types and instruments traded, and the IB's applicable loyalty tier and programme terms.

Client trading activity and retention can matter as much as the number of clients referred. Finance Magnates' research on retail FX and CFD brokers illustrates the variation in trading volume per active account across the brokers tracked. Its Q1 2026 figures should be verified against the original report before publication. Differences in client activity help explain why two IBs with the same number of clients can earn very different amounts.

Education and ongoing support may help IBs build stronger relationships with their clients. Ultimately, how much a forex IB earns depends on the clients they refer, their trading activity and how long they remain active.

Multi-tier IB commission structure

Partners who recruit other IBs can use the master IB programme. It supports up to five tiers, and each tier takes a share of the same rebate. Let’s take an example for a Standard account rebate of 5.00. When a Level 1 IB’s client trades at FP Markets, the Level 1 IB keeps 4.00 and the master IB receives 1.00. When a Level 3 IB’s client trades, the master takes 1.00, Level 1 takes 0.50, Level 2 takes 0.50 and Level 3 keeps 3.00. The split always adds up to the full rebate.

This model rewards network building, although it dilutes the share each sub-IB keeps. The default structure is customisable, so partners should ensure the team agrees with the split before they recruit.

What the headline rate does not show

A higher quoted rate does not always mean higher income. Some brokers might pay larger IB commissions because they run different business models. At FP Markets, the model favours tight spreads for clients. Lower spreads reduce the rebate per trade, yet the broker notes that happy clients tend to stay longer and trade more.

When you compare any IB commission structure, look at the full picture:

• Rebate per lot at each level
• How quickly commissions are paid
• Withdrawal conditions and required documents
• Support quality and reporting tools
• Client retention, which drives long-term volume

Applicants also need to supply a valid photo ID and proof of residence, and all marketing must follow the broker’s guidelines. Finally, remember that rebates come from client trading. A partner who promotes responsibly and supports clients with education could come closer to building a steadier income than one who chases sign-ups alone.

Start earning from your referral network

Once you understand how introducing broker commissions work, the next step is to choose a broker whose programme, payment structure and support suit your audience.

FP Markets' IB programme includes real-time commission payments, no limit on referred accounts, loyalty rewards, a customisable multi-tier structure and personalised partner support. Your referred clients can access more than 10,000 instruments, with spreads from 0.0 pips and fast execution. FP Markets is a multi-regulated broker with more than 80 international awards.

Apply to become an IB or explore the FP Markets partnership programmes to get started. Trading derivatives carries a high level of risk, so partners should promote responsibly.