Sept 11, 2025
Basics
One of the popular ways to to build a business in the financial markets without needing to trade directly is to become an Introducing Broker (IB). But if you are new to the IB model, you might wonder how it works exactly and how much you can realistically earn.
This article will answer those questions.
An Introducing Broker (IB) is a partner who refers clients to a brokerage in exchange for a commission. IBs don’t handle trade execution themselves, instead they focus on connecting traders with brokerage firms, giving advice and helping clients navigate the platform. More about Introducing Brokers and what they do: What is an Introducing Broker (IB) in Forex?
The core of the IB commission model is referred client activity. An IB brings a trader to a brokerage firm, and gets a reward from the broker (it’s called a rebate or a commission) for it. The commission is a share of the revenue generated from that client’s trades — each time the client places a trade, the broker earns money from spreads or transaction fees. However, it’s not like some traditional sales jobs where you might earn a one-time fee, because IB commissions are recurring: as long as the client you referred continues to trade, you keep earning.
There are three main ways to calculate the commission.
Revenue share model. You receive a percentage of the broker’s revenue from your client’s trades. Say your client generates $1000 in trading fees in a month and your revenue share is 40% — you earn $400.
Rebate per lot. This is a fixed commission: if the broker offers $10 per standard lot, and your client trades 20 lots in a month, that’s $200 earned from one client.
Tiered commission. Some programs have tiered structures, where your commission rate increases as your total referred trading volume grows. For example, your initial commission starts at $5 per lot, but once your clients trade over 500 lots per month, the rate jumps to $8 per lot. This system motivates IBs to scale their business.
Commission is the main, but not the only source of income for an IB. With several ways to generate revenue you can build a flexible model, tailored for your audience and trading expertise — don’t limit yourself to one source.
Spread markups. Some brokers allow IBs to add a small markup to the spread. For example, if the broker’s spread on EURUSD is 1 pip, and the IB adds 0.5 pips, they make a total 1.5 pips for the client. Then the broker keeps the original 1 pip, and the IB earns the difference. This model is especially profitable if the IB’s clients trade frequently in high volumes.
Performance fees. Managing accounts can also be an IB responsibility, and these activities can earn performance fees too. If your clients profit from following your strategies, you receive a percentage of their gains.
Education and additional services. Some successful IBs offer trading courses, webinars, market analysis reports and personal coaching. You can monetize these products and services separately.
Events and seminars. Offline and online events can generate income and grow your client base.
Advertising and content monetization. Strong online presence like blogs, YouTube channels, or social media can earn you additional income with affiliate marketing, advertising, or sponsored content.
Every trade from your clients can generate income for you. Partnering with the right broker makes all the difference. Join FBS and turn your network into a real business!
The main question beginner IBs ask is: can I make a full-time income as an IB? The answer is yes, but your earnings depend on several factors, such as the broker’s commission structure, the number of active clients, and their trading volume, so it requires careful planning.
Income opportunities tend to be discussed in terms of averages. But this can be misleading, as an IB can earn anywhere from $50 000 to $150 000 per year, and that’s a wide range.
For example, a beginner and a growing IB both take 10% commission, but the former refers 20 clients who trade 5 lots per month each, and the latter refers 80 clients who trade 8 lots per month each. Based just on this, their respective incomes will then be $1000 and $6400 per month — and these are not even all the factors that determine their possible profit.
Let’s take a closer look at more of them.
Choosing the right broker is crucial: opt for a transparent commission structure. Some brokers offer flat rebates per lot (e.g. $10 per lot on Forex pairs), while others pay a percentage of spreads or trading fees. A few provide hybrid or tiered models, where your rate increases as your clients trade more frequently (see below).
The more your clients trade, the more you earn. By the way, a smaller number of high-volume traders can generate more revenue than dozens of casual traders.
Any IB wants active clients who continue trading month after month. Short-term clients may give you an income spike, but with long-term traders you can make sure that you have stable and recurring profit. This is where strong customer support, education, and value-added services kick into action.
Every market is a world of its own, so the type of market traded is important too. Not all assets pay the same commission, for instance, Forex, indices, commodities, and crypto may have different rebate structures. Some brokers also offer higher incentives for promoting new products or less commonly traded instruments.
As you gain experience, you can specialize in a niche market with higher payouts and increase your commission.
In some regions, trading volume and client activity levels are higher than in others: traders in Asia and the Middle East often work more with Forex and commodities, while European clients may prefer indices or equities. Choose your target audience, understand its preferences and attract more active traders.
Delegation is often the right answer when you want to scale faster and spend less time and effort. This works in trading too: many successful IBs grow their income by recruiting sub-IBs, smaller partners who bring in their own clients and you then earn a percentage of their commissions.
When choosing the broker, look up the additional perks they might offer:
cash bonuses for hitting referral targets
higher rebates once you pass certain thresholds
marketing support, such as advertising budgets
Just signing up clients is not enough to become a successful IB. Treat being an IB as a professional business and it will pay for itself. Here are a few tips that will help you on your way.
Look for:
transparent commission structures
competitive spreads and trading conditions
strong client support and education
solid technology (CRM tools, reporting dashboards)
If you don’t want to spend time looking, just join FBS — a reliable, regulated broker, and build your wealth.
Clients who understand the markets are more likely to trade consistently. Offer webinars, courses, or market analysis tailored to your audience. Even simple trading guides that don’t take too much time to put together can build trust and encourage trading more.
Quick signups may give you a boost here and now, but it’s always better to invest in relationships. Provide regular updates, answer questions, and check in with your clients. If they are happy with your services, they will not only stay active, but may also recommend you to others.
Make the most of CRM systems: track your leads and client activity; save time with automating your email campaigns and SMM. You’ll have more energy to focus on building personal connections and delivering value.
Work less, earn more: that’s the motto of a person who expands their potential by recruiting sub-IBs. Even if each sub-IB only brings in a few clients, the combined volume can significantly increase your commissions.
Diversification is your best friend — don’t rely on commissions alone!
Staying compliant not only protects your business but also builds trust with clients. Always be clear about how you earn your commissions and what clients can expect: transparency is one of the strongest tools to build credibility.
Be realistic: most new IBs don’t earn six figures in their first year. That kind of success requires time, effort, and marketing. However, once you establish a base of active traders, your earnings can become steady and scalable.
Take a look at the following scenarios.
Clients referred: 25
Average trading volume: 5 lots per client per month
Commission: $8 per lot
With this scenario, you can earn $1000 per month or $12 000 annually — a common starting point. It may not replace a full-time salary, but it shows that an IB income is possible even with a modest client base.
Clients referred: 80
Average trading volume: 10 lots per client per month
Commission: $10 per lot
An intermediate IB can make $8000 per month or $96 000 annually. At this stage, you can comfortably live off commissions and even expand your business with marketing investments.
Direct clients: 150
Average trading volume: 12 lots per client per month
Commission: $10 per lot
Sub-IBs: 5 partners, each referring 20 clients trading 8 lots per month at $8 per lot
Direct income: $18 000 per month, sub-IB income: $6400 per month, total monthly income: $24 400, or $292 800 annually.
This scalable model combines direct client acquisition with a sub-IB network, which translates into an opportunity to make six figures per year.
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