IB commission tiers explained

A tiered IB program pays a higher rate once you reach certain thresholds. The idea is simple, but the details decide whether a tier upgrade is worth much.

What tiers are based on

• Monthly volume: the number of lots your clients trade.
• Active clients: how many clients traded in the month.
• New qualified clients: common for CPA tiers.
• Net deposits: deposits minus withdrawals from your clients.

Does the higher rate apply to everything?

There are two common methods:

• Whole-volume: once you reach a tier, the higher rate applies to all lots that month.
• Marginal: the higher rate applies only to the lots above the threshold, like tax bands.

Example: tiers are $6 per lot up to 500 lots and $8 above. Your clients trade 600 lots. Whole-volume pays 600 × $8 = $4,800. Marginal pays 500 × $6 + 100 × $8 = $3,800.

Monthly resets

Most tiers are recalculated every month. A quiet month can drop you back down. Ask whether the broker uses a rolling average (for example the last 3 months), which is more stable.

Not to be confused with sub-IB tiers

"Tier" can also mean levels in a multi-level structure, where you earn on sub-IBs below you. That's a different thing; see sub-IBs and multi-tier programs.

How to move up a tier

1. Keep a record of your clients' volume, retention and deposits.
2. Show your partner manager the quality, not just the quantity, of your clients.
3. Ask for a trial upgrade for a few months, reviewed against a target.
4. Get any upgrade in writing.

Traps to avoid

• Top-tier rates that almost nobody reaches, used as the headline.
• Tiers that count only certain instruments.
• Thresholds that the broker can change without notice.

Frequently asked questions

Can I negotiate my tier?

Often yes, especially if you can show active, long-term clients. Brokers value retention as well as volume.

What are IB2broker tiers?

On IB2broker, Gold, Silver, Bronze, Rising and Starter are verification tiers that describe an IB's profile to brokers. They are different from a broker's commission tiers. Learn how IB2broker works.