What is the difference between an IB and an affiliate?

Usage varies. An affiliate is usually paid for acquisition, often a CPA per funded client; an IB usually keeps earning from the client's trading through rebates or revenue share. Many programmes pay both ways, so one partner record should hold either model.

How do sub-IB overrides work?

A master IB earns its own rebate on clients it refers and a smaller override on clients its sub-IBs refer. The system must split each payable trade across the levels in the agreement without counting volume twice.

Does an introducing broker need a licence?

It depends on the jurisdiction and on what the IB does. The NFA registers introducing brokers in the United States unless an exemption applies; in Australia, commission to referrers who give advice may be conflicted remuneration. Check with your compliance adviser.

Introducing broker (IB), sub-IBs and rebates

What is an introducing broker (IB)?

An introducing broker (IB) is a partner who refers clients to a broker and is paid for the business they bring: per lot traded, a share of revenue, a one-off sum per funded client, or a mix. A master IB recruits sub-IBs and earns an override on their clients. The broker's partner system tracks referrals, rebates and payouts.

Updated 2026-11-13 · By EntropyX Labs engineering

How an IB programme works

The IB gets a referral link or code. When a client signs up through it, the broker records the partner on the client's record, and the client's trading then earns commission under the partner's agreement, computed from platform data such as lots, instruments and revenue, and paid on a schedule.

In the United States the term names a regulated category: the NFA defines an IB as a person or firm that solicits or accepts orders for futures, forex, commodity options or swaps without accepting customers' money, and requires registration unless an exemption applies. Elsewhere it usually means a referral partner, and whether one needs a licence varies by country.

In ASIC's January 2026 review of 52 CFD issuers, where issuers knew where clients came from, 20% of new retail clients arrived through paid referrals (IBs, affiliates or client referrals) and 45% through paid online advertising.

Rebate models, tiers and master IBs

Model	How it pays	Watch for
Lot-based rebate	A fixed amount per lot traded	Manufactured volume; reconcile against what the broker earned
Revenue share	A percentage of the revenue the clients generate	Needs per-client revenue data
CPA	A fixed sum once a client clears an activation bar	Self-referral; clients who fund once and leave
Hybrid	An upfront CPA plus a trailing revenue share	Both legs from one event stream, no double counting

B2BROKER describes master and sub-IB structures as nested hierarchies “where a single trade can owe commission at more than one level”. Track360 names wash trading, self-referral on CPA and fake sub-IB downlines as the fraud to watch.

What to ask a vendor

Is the partner recorded on the client's record at sign-up, or matched later from another system?
Which rebate models can run side by side, with rates per partner?
How many override levels can a hierarchy hold, and how is a client moved between partners?
What flags wash trading and self-referral before a payout is approved?

Where EntropyX Labs fits, and where it does not

Brokerage CRM tracks IBs and affiliates on the same record as the clients they refer, with partner tiers, rebate rules and payout tracking. It is a CRM feature, not a separate IB product; partner terms and commission schedules are yours to set. The override depth your master and sub-IB structure needs is confirmed in scoping; this page states none.