IB Rebate
An IB rebate is a payment that an introducing broker passes back to referred clients, typically funded from the IB's own commission share. Rebates are used to attract and retain active traders by reducing their effective trading costs.
What it means in practice
An IB rebate is a portion of the introducing broker's commission that is returned to the referred client. When a trader executes trades, the broker pays the IB a commission -- usually a lot-based commission. The IB then shares part of that commission back with the trader as a rebate, reducing the trader's net cost of trading.
Rebates serve as a competitive tool for IBs. In markets where many IBs compete for the same pool of active traders, offering a rebate can be the differentiator that wins a client relationship. The rebate amount is usually expressed as a fixed dollar value per lot traded or as a percentage of the IB's commission.
The key distinction between a commission and a rebate is direction. Commissions flow from the broker to the IB as payment for referral. Rebates flow from the IB to the client as a cost reduction. This creates a three-way financial relationship that requires accurate tracking of trade volume, commission accruals, and rebate payouts to avoid discrepancies.
How IB Rebate works across industries
See how ib rebate is applied in the verticals Track360 supports, from qualification logic and payout structure to the operational context behind each model.
How Track360 handles this
Track360 supports automated rebate calculations alongside standard lot-based commission structures. Operators can configure rebate rules per IB, per client tier, or per instrument, with payouts calculated from live trade data and reconciled against commission accruals.
Frequently Asked Questions
Common questions about ib rebate, how it works in affiliate programs, and where it shows up across Track360's supported verticals.
An IB commission is paid by the broker to the IB for referring a client. An IB rebate is paid by the IB to the client, typically from the IB's commission share. The commission rewards the IB for referral; the rebate reduces the trader's effective cost and is used as an incentive to attract and retain active clients.
Related Terms
Introducing Broker (IB)
An Introducing Broker is a partner who refers new traders to a Forex or CFD brokerage in exchange for ongoing commissions, typically calculated on the trading volume or revenue generated by those referred clients.
Lot-Based Commission
Lot-based commission is a broker affiliate or IB payout model where partners earn a fixed amount for each traded lot generated by their referred clients.
Sub-IB
A Sub-IB is an introducing broker recruited by another IB (the master IB) rather than directly by the broker. Sub-IBs operate under a multi-tier structure where commissions cascade from the broker through the master IB layer.
Master IB
A Master IB is an introducing broker who recruits and manages a network of Sub-IBs beneath them. The Master IB earns override commissions on the trading volume generated by their downstream partners in addition to commissions on their own direct referrals.
Continue Learning
Free structured courses that cover this topic and more.
Forex IB Program Management
Lot-based and symbol-based commission structures, multi-level IB hierarchies, MT4/MT5 integration, and per-partner deal terms built for brokerages. From onboarding to payout.
Scaling Forex IB Networks
Regional IB hierarchies, multi-currency payouts, advanced deal logic, and operational strategies for brokers scaling from 10 IBs to 500+.
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