IB Sub-Agreement

An IB sub-agreement is a contract between a master introducing broker and a sub-IB that governs commission splits, client ownership, and referral obligations within a multi-tier IB network.

What it means in practice

An IB sub-agreement is the contractual layer between a master IB and a sub-IB within a multi-tier introducing broker network. While the master IB holds the primary IB agreement with the forex broker, the sub-agreement defines how the master IB compensates downstream partners who bring in traders through their own referral efforts.

The sub-agreement typically covers commission structure (lot-based, spread-based, or CPA), client ownership rules, minimum volume requirements, payment terms, and termination conditions. A critical element is the override commission — the spread between what the broker pays the master IB and what the master IB passes to the sub-IB.

For brokers, sub-agreements create scalability without direct management burden. The master IB handles recruitment, training, and payment of sub-IBs. However, brokers must ensure that sub-agreements comply with regulatory requirements, particularly under MiFID II and CySEC rules that require transparency about commission arrangements and potential conflicts of interest.

Well-structured sub-agreements include provisions for commission reconciliation, dispute resolution, anti-fraud clauses, and clear definitions of "referred client" to prevent attribution conflicts between overlapping sub-IB territories.

How IB Sub-Agreement works across industries

See how ib sub-agreement is applied in the verticals Track360 supports, from qualification logic and payout structure to the operational context behind each model.

Forex

IB Sub-Agreement in Forex partner and IB models

In forex, IB sub-agreements are the backbone of multi-tier distribution networks. Master IBs in regions like Southeast Asia and MENA often manage 10-50 sub-IBs, each serving local trader communities. The sub-agreement defines [lot-based commission](/glossary/lot-based-commission) splits, typically with the master IB retaining 20%-40% of the broker's IB payout as an [override commission](/glossary/override-commission).
Read More
Prop Trading

IB Sub-Agreement in prop trading acquisition flows

Prop trading firms increasingly adopt IB sub-agreement structures as their affiliate programs mature. A master partner recruits sub-affiliates who refer traders to purchase challenges. The sub-agreement governs the commission split on [challenge purchases](/glossary/challenge-purchase) and may include tiered rates based on referral volume.
Read More

How Track360 handles this

Track360's commission management engine supports multi-tier IB hierarchies with configurable override rates, enabling operators to manage master IB and sub-IB commission splits within a single platform.

FAQ

Frequently Asked Questions

Common questions about ib sub-agreement, how it works in affiliate programs, and where it shows up across Track360's supported verticals.

An IB sub-agreement is a contract between a master introducing broker and a sub-IB. It governs commission splits, client attribution, payment terms, and referral obligations within a multi-tier IB network.

Related Terms

Forex & IB

IB Agreement

Forex
Read Definition

An IB agreement is the formal contract between a forex broker and an [introducing broker](/glossary/introducing-broker) that defines the commission structure, payment terms, compliance obligations, client ownership rules, and termination conditions governing the partnership. It is the legal foundation that specifies how the IB earns revenue and what responsibilities each party assumes.

Forex & IBRead More →
Forex & IB

Master IB

Forex
Read Definition

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.

Forex & IBRead More →
Forex & IB

Sub-IB

Forex
Read Definition

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.

Forex & IBRead More →
Commission & Payouts

Override Commission

iGamingForexProp Trading
Read Definition

An override commission is a payment made to a parent or master affiliate based on the performance of the sub-affiliates or sub-IBs they manage. It rewards partner recruitment and network management without reducing the sub-partner's own earnings.

Commission & PayoutsRead More →
Forex & IB

Introducing Broker (IB)

Forex
Read Definition

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.

Forex & IBRead More →
Forex & IB

IB Network

ForexProp Trading
Read Definition

An IB network is a multi-tier structure where a master introducing broker recruits sub-IBs, earning override commissions on the trading volume they generate.

Forex & IBRead More →
Commission & Payouts

Commission Split

iGamingForexProp Trading
Read Definition

A commission split is the division of earned commission between multiple parties, such as a master affiliate and their sub-affiliates, or a master IB and their sub-IBs.

Commission & PayoutsRead More →
Forex & IB

IB Commission Tier

ForexProp Trading
Read Definition

An IB commission tier is a structured level within a forex broker's introducing broker program that determines commission rates based on referred client volume, trading activity, or revenue generation.

Forex & IBRead More →
From the Blog

Related Articles

Further reading on ib sub-agreement and related affiliate program topics.

Browse all articles