What Is an Introducing Broker and How Do They Make Money?
An Introducing Broker sends traders to a broker and gets paid on every lot they trade. Here is exactly how the money flows and how to start.
You have seen it a hundred times in trading groups: "Sign up under my link." Most people scroll past. The ones who understand what is behind that link are building an income that pays them whether the market goes up, down or sideways.
- An Introducing Broker (IB) sends traders to a broker and gets paid a cut of what those traders generate.
- The money comes from the spread the broker already charges. The client pays nothing extra on standard deals.
- The best IB deals pay per lot, forever. A client you introduce today can still be paying you in three years.
- Your income does not depend on your own win rate. It depends on how many traders trust you.
What an Introducing Broker actually is
Strip away the jargon and it is this: an IB is the person who brings the traders.
The broker holds the money, runs the platform and fills the orders. The IB does none of that. The IB signs a partnership agreement, gets a unique tracking link, and every account opened through that link is tagged to them for life.
Think of an estate agent who gets paid every month the tenant stays, not once at signing. That is the IB model.
Follow the money
To see how the IB gets paid you need to see how the broker gets paid first. Three sources, but only one of them pays you:
The gap between buy and sell price, charged on every single trade. This is the pool your rebate comes from.
The fixed per lot fee on raw or ECN accounts. Goes to the broker, not the IB.
Overnight financing on positions held past rollover. Also stays with the broker.
This is why the account type your clients trade on matters so much to you. Standard accounts have wider spreads, so there is more room for the broker to share. ECN and raw accounts have very tight spreads, so the IB rebate on those is small, typically up to around 2 dollars per lot. More on that below.
Three ways an IB gets paid
| Structure | How it works | Best for |
|---|---|---|
| Rebate per lot | Fixed amount per standard lot traded, taken from the spread. Higher on standard accounts, up to around 2 dollars per lot on ECN. Paid win or lose. | Almost everyone. Predictable and recurring. |
| Revenue share | A percentage of the spread the broker earned from your clients. | IBs with high volume clients on standard accounts. |
| CPA | One off payment when a client funds and hits a trading threshold. Then nothing. | Paid traffic and one time promotions. Not for building a business. |
Serious IBs go for rebate or revenue share every time. CPA looks good on day one and dead on day thirty.
Does the client pay more because of you? On standard structures, no. Your cut comes out of the broker's share, not the client's pocket. Some brokers offer markup accounts where the IB widens the spread. Avoid them. They make clients trade worse and leave sooner.
Standard vs ECN: why it changes your income
No commission, the broker earns from the spread alone. There is more in the pot, so the IB rebate per lot is higher.
The spread is close to zero and the broker earns from commission instead. The IB only sees the spread, so rebates here are typically up to around 2 dollars per lot.
This is not a reason to push everyone onto standard accounts. Serious traders will want raw pricing and will leave if you steer them wrong. It is a reason to know your numbers before you choose a broker and an account structure.
Honest caveat. Client activity fades over time, so you need a steady flow of new sign ups to keep growing. Rebate figures vary by broker, instrument and account type. Always get the exact schedule in writing before you sign.
What IBs do all day
The best IBs are not salespeople. They run something traders already want, and the broker relationship sits underneath it:
Members trade the ideas with a recommended broker.
Teach a strategy, recommend the place to trade it.
Followers need an account with a specific broker to copy.
Friends and contacts who already ask which broker to use.
Same pattern every time. Provide value, earn trust, and people open their account through you. The ongoing work is onboarding, answering questions and keeping the community alive.
Do you need a licence?
It depends where you are. In many countries, referring clients to a regulated broker without giving personalised advice or handling money does not require your own licence. In others, including parts of Europe, the rules are tighter.
The safe path: partner only with regulated brokers, keep your content educational, never touch client funds, and take advice for your own country. We have a full guide on this coming.
Why people build IB businesses
Income compounds as your base grows instead of resetting every month.
You are not trading your own money and not building a platform.
A losing month for you is not a losing month for your IB income.
Ten clients is a side income. A few hundred is a business. Sub-IBs take it further.
The catches
You need an audience or the ability to build one. No traders, no income.
Churn is real. Retail traders come and go. Your community is what keeps them active.
Broker choice matters. Slow withdrawals or wide spreads lose your clients fast, and it reflects on you.
Compliance. Financial advertising rules are strict. Educational content is safer than hype.
How to start
- Pick your offer. Signals, education, community or copy trading.
- Pick one or two regulated brokers whose products suit your audience.
- Apply for an IB account and get your tracking link and portal.
- Build a simple onboarding flow so new members know exactly how to open an account under you.
- Focus on keeping clients active, not just signing them up.
Want steps 2 to 5 done with you?
We run a live IB operation every day. We set new IBs up with the broker partnership, the onboarding system and the playbook we use ourselves.
Apply to become an IBRisk warning: Trading forex, CFDs and other leveraged products carries a high level of risk and may not be suitable for everyone. You can lose more than your initial deposit. This article is for education only and is not financial advice. Earnings as an Introducing Broker are not guaranteed and depend on client activity.