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Academy/IB Fundamentals/Understanding CPA, Rebate & Rev Share
Lesson 2 of 1018 min

Understanding CPA, Rebate & Rev Share

Understanding Commission Models

Choosing the right commission model is one of the most important decisions you'll make as an IB. Each model has different risk/reward profiles.

1. CPA (Cost Per Acquisition)

How it works: You get a one-time payment when a referred client makes their First-Time Deposit (FTD) and meets the minimum requirements.

Typical rates: $200–$1,500 per FTD

Requirements: Most brokers require:

  • Minimum deposit (usually $200–$500)

  • Client must trade a minimum volume (e.g., 2–5 lots within 30 days)

  • Client must be from an approved country
  • Best for: IBs who can generate high volume of new sign-ups.

    Pros:

  • Immediate, predictable income

  • No dependency on client trading activity long-term

  • Easy to calculate ROI on marketing spend
  • Cons:

  • One-time payment — no recurring income

  • Higher volume needed for sustainable income

  • Risk of "clawback" if client doesn't meet minimum trading requirements
  • 2. Revenue Share

    How it works: You earn a percentage of the revenue the broker generates from your referrals' trading activity — typically from the spread markup or commissions.

    Typical rates: 20%–60% of broker revenue

    Best for: IBs building long-term passive income.

    Pros:

  • Recurring income as long as clients trade

  • Income grows as your client base grows

  • Can become very profitable over time
  • Cons:

  • Slow start — takes months to build meaningful income

  • Dependent on clients continuing to trade

  • Harder to calculate short-term ROI
  • 3. Rebate (Per Lot)

    How it works: You earn a fixed amount for every standard lot your referred clients trade.

    Typical rates: $2–$35 per standard lot

    Best for: IBs who attract active, high-volume traders.

    Pros:

  • Predictable per-unit income

  • Not affected by broker spread changes

  • Great for clients who trade frequently
  • Cons:

  • Income depends entirely on trading volume

  • Quiet markets = lower income
  • Hybrid Models

    Many experienced IBs negotiate hybrid deals — for example, $500 CPA + $5/lot rebate. This gives you upfront income plus ongoing earnings.

    Which Model Should You Choose?


    Your SituationRecommended Model
    Just starting, need cash flowCPA
    Building long-term businessRevenue Share
    You attract active tradersRebate
    Experienced, high volumeHybrid (CPA + Rebate)

    Pro Tip

    Start with CPA to fund your marketing. Once you have steady traffic, negotiate a hybrid deal or add revenue share brokers to diversify your income streams.