An Introducing Broker (IB) is a person or business that refers clients to a forex or CFD broker and is paid for it. The IB doesn't execute trades or hold client money. The broker does that. The IB's job is to find traders, help them get started and keep them engaged, and the broker shares part of the revenue those traders generate.
The model has been around for decades in futures and forex, and it remains one of the main ways brokers grow. Many brokers run dedicated partnership desks just for IBs.
How Introducing Brokers earn money
Every broker program is built on one of four commission models, or a mix of them:
- CPA (cost per acquisition): a one-off payment for each referred client who meets the qualification rules, such as a minimum deposit and a minimum number of lots traded.
- Rebates (per lot): a fixed amount for every standard lot your clients trade, for as long as they trade.
- Revenue share: a percentage of the revenue the broker makes from your clients, usually from spreads and commissions.
- Hybrid: a combination, for example a smaller CPA plus a per-lot rebate.
Which one suits you depends on your audience. We compare them with worked examples in CPA vs revenue share vs rebates.
IB vs affiliate vs white label
| Introducing Broker | Affiliate | White label | |
|---|---|---|---|
| Main activity | Refers and supports clients, often personally | Drives sign-ups through websites and ads | Runs its own branded brokerage on another firm's technology |
| Typical pay | Rebates, revshare, CPA or hybrid | Mostly CPA | Its own spreads and fees |
| Client relationship | Close and ongoing | Light | Owns the client |
| Set-up cost | Low | Low | High, and usually needs its own licence |
In practice the lines blur. Many IBs also run websites, and many affiliates take rebates. The key difference is that an IB usually knows its clients and supports them over time.
Who becomes an IB?
- Trading educators and academies whose students need a broker.
- Community owners: Telegram and WhatsApp groups, Discord servers, YouTube and Instagram creators.
- Signal and analysis providers.
- Experienced traders with a network of other traders.
- Local business networkers who introduce clients in their city or region.
Some IBs are one person; others are companies with sub-IBs and account managers of their own.
What brokers expect from an IB
Brokers pay for real, active clients, so they look closely at quality. Expect them to ask about your region, your audience, how you market and your monthly volume. Most programs also forbid:
- promising profits or "guaranteed" returns;
- opening accounts for clients or trading on their behalf without the right permissions;
- bonus abuse, fake accounts or self-referrals;
- marketing in countries the broker doesn't accept clients from.
Do you need a licence to be an IB?
It depends on where you and your clients are. In some countries, introducing clients to an investment firm is a regulated activity, or you must work under the broker's licence (for example as a tied agent or appointed representative). In the UAE, for instance, introduction activities can fall under SCA or DFSA rules. Other countries have lighter requirements.
The responsibility that comes with it
Trading CFDs and forex with leverage is high risk, and many retail clients lose money. Good IBs are open about that. They refer people who understand the risks, never pressure anyone and never present trading as easy money. That honesty also protects your reputation and your income, because brokers drop IBs whose clients complain.
How to choose a broker partner
- Regulation: check the licence on the regulator's public register. Our guide explains how to check a broker's regulation.
- Payout record: how often they pay, how reliably, and with what minimums.
- Clear terms: the qualification rules, clawbacks and reporting, in writing.
- Fit for your clients: accepted countries, platforms, minimum deposits and support in your clients' language.
- Support for you: a dedicated manager, marketing material and training, which matter most when you are new.
How IB2broker helps
IB2broker is a free marketplace for Introducing Brokers. You compare CPA, rebate, revshare and hybrid programs from licence-checked brokers side by side, read reviews from IBs who actually partnered, and apply in one tap. Your contact details stay private until a broker you applied to unlocks your profile. Ready to start? Read how to become a forex IB.
Frequently asked questions
Is an Introducing Broker the same as a broker?
No. The broker holds client funds and executes trades. The IB refers clients and is paid a commission by the broker.
Can I be an IB for more than one broker?
Usually yes, unless a program asks for exclusivity. Many IBs work with two or three brokers to suit different clients.
Do IBs need trading experience?
It helps you understand your clients, but it isn't required. What matters most is an audience or network that trusts you, and honest marketing.
Compare IB programs on IB2broker
Free for Introducing Brokers. Licence-checked brokers, real terms side by side, and your details private until you choose.
Join free as an IB I'm a broker