The Three IB Contract Models Explained

Every Forex Introducing Broker earns through one of three fundamental commission models — or a combination of all three. Choosing the wrong model can cost you 40–70% of your potential income. Here's exactly how each one works.

What is a CPA Contract?

CPA (Cost Per Acquisition) pays a fixed one-time commission when a referred client makes their first qualifying deposit. The commission is tiered by deposit amount: a $500 deposit might generate $400 CPA, while a $20,000 deposit generates up to $10,000 CPA through the BIAFC Network. It's front-loaded income — high immediate payout, no recurring element unless the client deposits again.

What is a Rebates Contract?

Rebates pay a fixed amount per lot traded by your referred clients, on every single trade — wins, losses, and everything in between. The market standard is $5–12/lot. Through BIAFC exclusive partners, top rebate rates reach $35–50/lot. Rebates are passive, recurring, and compound as your client base grows. A trader who generates 30 lots/month at $35/lot = $1,050/month indefinitely.

What is PnL Revenue Share?

PnL (Profit and Loss) revenue share gives you a percentage of the broker's net profit generated by your clients. Standard programs offer 20–30%. BIAFC negotiates up to 60% PnL share. This model is ideal for signal providers whose followers copy trades — the broker earns from the spread/markup on every copied trade, and you receive 60% of that profit monthly. It's the highest ceiling model but depends on client trading volume and profitability.

$10,000
Max CPA per client
$50/lot
Best rebate rate
60%
Max PnL share
Weekly
Payout frequency

Side-by-Side Comparison With Real Numbers

Let's model the same IB with 20 new clients depositing $2,000 each, who then trade 25 lots/month for 6 months. Which contract wins?

ContractBest ForRisk LevelIncome Ceiling
CPANew client referralsMedium$10,000/client
RebatesActive recurring tradersLowUnlimited passive
PnL ShareSignal/copy providersLow60% recurring
HybridAll client typesVery LowMaximum possible

CPA scenario: 20 clients × $1,500 = $30,000 upfront. No further income unless they re-deposit.

Rebates scenario: 20 clients × 25 lots/month × $35 = $17,500/month recurring. Over 6 months: $105,000 — more than 3x the CPA result.

PnL share scenario: Highly variable, but signal providers with large follower bases routinely exceed $20,000/month on 60% share with active copy-traders.

💡 Key insight: The BIAFC Hybrid Contract combines all three income streams into one agreement. Most IBs don't know this option exists — and the brokers certainly won't offer it unless you have negotiating leverage.

Which Contract Wins for Your Situation?

The answer depends entirely on your client profile. There's no universally "best" contract — only the best contract for your specific book of clients.

High-Volume Low-Deposit Clients → Choose Rebates

If your clients deposit small amounts ($200–500) but trade frequently, CPA pays poorly (low deposit tier = low CPA) while rebates accumulate rapidly. A client depositing $300 might only generate $200 CPA, but if they trade 50 lots/month at $35/lot, they generate $1,750/month in rebates — worth 8.75× the CPA in just month one.

High-Deposit Active Traders → Choose CPA or Hybrid

If your network produces high-value depositors ($2,000–$20,000+), CPA delivers enormous upfront commissions. But the smart move is Hybrid: collect the $1,500–$10,000 CPA at acquisition, then earn rebates on every lot they trade going forward. One client can generate CPA + $840/month in rebates (at 2 lots/day × 30 days × $14 net) indefinitely.

The Hybrid Approach: Stack All Three

The BIAFC Hybrid Contract is the model top-performing IBs use exclusively. Instead of choosing one income stream, you receive CPA on new deposits, rebates on every lot traded, and PnL share on broker profits from your book. The combined effect compounds dramatically:

  • Month 1: CPA from new deposits funds immediate income
  • Months 2+: Rebates begin building a passive income base
  • Quarter 2: PnL share kicks in as client volume stabilizes
  • Year 1 total: Typically 2.5–3.5× higher than single-model equivalent

Use the BIAFC earnings calculator to model all three scenarios side by side, then apply to discuss which hybrid conditions we can negotiate for your client profile.

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Model your earnings across all three contract types, then apply for the conditions your client book deserves.

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