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:
Best for: IBs who can generate high volume of new sign-ups.
Pros:
Cons:
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:
Cons:
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:
Cons:
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 Situation | Recommended Model |
|---|---|
| Just starting, need cash flow | CPA |
| Building long-term business | Revenue Share |
| You attract active traders | Rebate |
| Experienced, high volume | Hybrid (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.