RevShare vs Lot-Based Commission
RevShare pays affiliates a percentage of broker revenue. Lot-based commission pays a fixed amount per traded lot. The choice depends on whether the operator wants payouts tied to revenue or trading volume.
What it means in practice
RevShare and lot-based commissions are the two primary ongoing commission models in forex affiliate and IB programs. RevShare pays a percentage of the revenue a referred trader generates for the broker. Lot-based pays a fixed amount for each standard lot the trader executes. The core difference is whether the payout is tied to revenue or volume.
RevShare aligns affiliate incentives with broker profitability. If a trader generates high spread income, the affiliate earns more. If the trader is unprofitable for the broker (e.g., a consistently winning scalper on a B-book), the affiliate earns less. This makes RevShare the lower-risk model for operators but the less predictable model for affiliates.
Lot-based commissions offer transparency that affiliates value. An IB can calculate expected earnings by estimating referred trading volume — there is no dependency on the broker's internal revenue calculations. However, this simplicity creates risk for operators: high-frequency traders or scalpers can generate large lot counts with minimal spread income, pushing commission costs above the revenue those traders produce.
RevShare vs Lot-Based Commission
Side-by-side breakdown of how these two models compare across key dimensions.
Advantages
- Payouts scale naturally with broker revenue
- Lower risk of overpaying on thin-margin trades
- Encourages affiliates to send traders who generate real revenue
- Works across all instrument types without per-lot rate adjustment
Limitations
- Requires transparent revenue reporting, which some affiliates distrust
- Variable payouts make affiliate earnings harder to forecast
- Deduction disputes can arise if spread markup or commission structures are unclear
Advantages
- Simple, transparent calculation affiliates can verify independently
- Predictable earnings for affiliates based on referred trading volume
- Attractive to high-volume IBs who manage active trader networks
- No dependency on operator revenue disclosure
Limitations
- Operator pays fixed costs regardless of revenue per trade
- Scalpers and high-frequency traders can inflate lot counts without proportional revenue
- Requires per-instrument rate adjustments (forex, metals, indices have different spreads)
When to choose which
Choose RevShare
Choose RevShare when you want commission costs tied directly to revenue, when your broker model has wide spread variability across instruments, or when you want to incentivize affiliates to send traders who generate real broker income rather than just volume.
Choose Lot-Based Commission
Choose lot-based commissions when transparency and simplicity are priorities, when your affiliates are volume-focused IBs who manage active trader communities, or when your spread model is stable enough to support fixed per-lot payouts across instruments.
How RevShare vs Lot-Based Commission works across industries
See how revshare vs lot-based commission 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 both RevShare and lot-based commission models with automated calculation from trading platform data. Operators can configure per-partner or per-tier commission types, combine them with CPA in hybrid deals, and provide affiliates with transparent volume and revenue reporting.
Frequently Asked Questions
Common questions about revshare vs lot-based commission, how it works in affiliate programs, and where it shows up across Track360's supported verticals.
RevShare pays a percentage of the revenue a referred trader generates. Lot-based pays a fixed amount per traded lot. RevShare ties payouts to profitability; lot-based ties payouts to volume. The choice depends on whether the operator or the affiliate bears more risk from trader behavior.
Related Terms
RevShare (Revenue Share)
RevShare is a commission model where an affiliate earns an ongoing percentage of the revenue generated by their referred customers, typically calculated on a monthly basis.
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.
CPA vs Lot-Based Commission
CPA pays a fixed amount per qualified trader acquisition; lot-based pays ongoing commission per traded lot. The core difference is whether the broker compensates the IB for acquisition or for ongoing trading activity.
Spread-Based Commission
A commission model in Forex IB programs where the introducing broker earns a portion of the spread (the difference between bid and ask price) on every trade their referred clients execute.
Hybrid Commission
Hybrid commission combines two payout models, most commonly CPA and RevShare, in a single affiliate deal so operators can reward both conversion volume and long-term customer value.
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.
Spread Share
A forex affiliate or IB commission model that pays the partner a share of the spread markup the broker captures on every trade executed by a referred client, accruing continuously with trading activity.
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.
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