Introducing Broker (IB): Definition, Types & Earnings

An Introducing Broker (IB) is an individual (or firm) that establishes and maintains relationships with trading and investing clients. The Introducing Broker is a middleman that connects traders and investors to a larger brokerage firm, while also providing them with access to trading platforms and market insights.

IBs don’t execute trades themselves; however, rather delegating trade execution to a third-party firm known as a Liquidity Provider (LP) in forex markets (or a Futures Commission Merchant (FCM) in futures markets). This delegation allows IBs to focus on client acquisition and support, while also leveraging the infrastructure and execution capabilities of their partners.

An Introducing Broker (IB) is a commonplace and often crucial intermediary in the financial markets, particularly in futures and forex trading. Although they might seem to be the same as Affiliates, an IB knows and maintains a relationship with their clients, while an Affiliate is essentially a marketing avenue for brokers, and may never personally interact with traders who sign up to the brokerage he is recommending.

IBs earn commission on their referrals in a variety of ways, and becoming and IB can be a relatively uncomplicated matter of registering with a brokerage, and/or can demand registration with a regulatory body, depending on your jurisdiction.

In the United States, for example, IBs are regulated by the Commodity Futures Trading Commission (CFTC) and are members of the National Futures Association (NFA), ensuring that they maintain industry standards and a high level of professionalism and transparency in their operations.

What is an Introducing Broker?

An Introducing Broker (IB) is a person or firm that connects clients to a brokerage firm, typically in the futures, commodities, or forex markets, without directly handling the clients’ funds or executing trades. 

Instead, the IB refers clients to a larger broker—known as a Futures Commission Merchant (FCM) or similar—who takes care of the actual trade execution and account management.

In return, the IB earns a commission or a portion of the trading fees generated by their referred clients.

What does an Introducing Broker do?

An IB is essentially an extended marketing and training arm of their preferred broker, and provides training and coaching to the traders they sign up to that broker.

Although they are not beholden as an Associated Person to the brokerage, there is a definite symbiosis between the parties, both of whom are expected to perform as reputable professionals.

An IB’s primary responsibilities include:

• Client acquisition: Soliciting potential traders to their partnered FCM or LP is the principal occupation of an IB, substantiating their recommendation through their own acumen, expertise, and experience. 
• Client support: Providing ongoing assistance to clients by mentoring the traders he signs up,  addressing inquiries, offering guidance on trading strategies, and broadly adding value to their trading experience
• Education: Offering educational resources and training to help clients understand market dynamics and trading platforms, hosting regular webinars or other coaching sessions, and perhaps also chairing regular check-in sessions where the traders discuss their individual progress with the group.
• Marketing: Promoting the services of their partnered FCM or LP through various marketing channels, utilizing both free and paid platforms to extend their reach. 
• Compliance: Ensuring that all activities comply with relevant regulatory requirements is something that falls primarily to the broker, but an IB cannot knowingly skirt such requirements either, and is expected to maintain the highest fiduciary responsibility and professional conduct..

Let’s say you’re interested in trading forex, although you’ve never done it before, and you come across a small financial advisory firm called “FX IB XYZ”, which acts as an Introducing Broker.

FX IB XYZ is a small team of two or three traders who won’t handle your money or execute your trades—instead, they help you open an account with a larger broker like FP Markets, BlackBull, or IG.

FX IB XYZ guides you through the account setup, offers you educational materials, and provides trading tips, but once you’re ready to trade, all the actual transactions happen on the brokerage’s platform.

The brokerage pays FX IB XYZ a commission based on your trading activity, so it’s a win-win: you get help starting out, and FX IB XYZ earns for bringing you in.

In the forex market, IBs often operate differently compared to those in futures markets. Forex IBs may:

• Offer leverage: They can provide clients with access to higher leverage ratios, which is a common practice in forex trading.
• Spread markups: They often earn revenue by marking up the spreads offered by their LPs, thereby generating income from the difference between the bid and ask prices.
• Provide copy trading services: Facilitate copy trading features, allowing clients to mimic the trades of experienced traders.

What’s the Difference between an Introducing Broker and a Clearing Broker?

There are significant differences in the roles of an Introducing Broker (IB) and a Clearing Broker in the trading arena:

• Introducing Broker (IB): Focuses on client acquisition, relationship management, and marketing－they introduce clients to clearing brokers but do not handle the execution or settlement of trades.
• Clearing Broker: Also known as a Futures Commission Merchant (FCM) in futures markets, a clearing broker is responsible for the execution, settlement, and reporting of trades－they ensure that trades are processed accurately and that clients’ accounts are properly managed.

This division of responsibilities between IBs and clearing brokers allows each party to specialize in areas where they can provide the most value, ideally leading to a more efficient and effective trading environment.

We can break down the key differences between an Introducing Broker (IB) and a Clearing Broker, and also touch on Executing Brokers and Futures Commission Merchants (FCMs) to clarify their roles in the big picture.

The Key Differences Between IBs and Clearing Brokers

Aspect	Introducing Broker (IB)	Clearing Broker
Role	Introduces clients to a broker, but does not handle trades or funds.	Responsible for clearing, settling, and reporting on trades.
Trading	Provides trading advice and education, but does not execute trades.	Executes trades through an Executing Broker and processes them.
Clearing	Does not handle clearing or settlement.	Handles the clearing of trades and ensures proper settlement of funds.
Reporting	May provide basic guidance on the trading process, but does not provide detailed reports.	Provides detailed reports about trades, margins, and account balances.
Billing	May earn commissions or fees for referring clients, but doesn’t handle client billing.	Bills clients for commissions, margin interest, and other fees.
Pre-trade compliance	May help ensure clients understand basic regulations, but doesn’t handle compliance directly.	Conducts compliance checks, such as KYC and suitability, before trades.

The Introducing Broker (IB) acts as a middleman—introducing clients to the Clearing Broker or FCM and earning commissions for the client referrals. The Clearing Broker or FCM is responsible for clearing the trades, settling transactions, reporting results to clients, and handling all billing.

The actual nuts and bolts of a trade is handled by an Executing Broker that executes orders in the market, while the Clearing Broker handles the back-end operations of trade settlement and margin management.

The key distinction between an IB and a Clearing Broker is that the IB doesn’t handle the operational side of trading, whereas the Clearing Broker is heavily involved in all aspects of clearing, settling, and reporting trades.

In the futures or commodities market, an FCM is a special type of Clearing Broker with a regulatory role.

1. Introducing Broker (IB)

An Introducing Broker (IB) is an individual (or firm) that works with a client to introduce them to a Clearing Broker or FCM (Futures Commission Merchant), but does not directly handle the client’s funds or execute trades.

An IB is primarily involved in client acquisition and providing trading education, but they do not execute trades or manage client accounts themselves.

An IB’s focus is on clients in terms of:

• Trading: An IB might advise clients on trading strategies and provide education (but does not execute the trades directly).
• Client acquisition: The IB introduces new clients to a brokerage, earning a commission or referral fee for each client they bring.
• Pre-trade compliance: They might help ensure the client complies with basic regulatory requirements before trading, but the actual compliance checks (like suitability) are done by the Clearing Broker or FCM.

2. Clearing Broker (or Clearing Firm)

A Clearing Broker (also called a Clearing Firm) is responsible for the clearing and settlement of trades on behalf of clients. While the Introducing Broker brings the client, the Clearing Broker handles the core functions of trading, including the processing of transactions, maintaining client funds, and ensuring everything goes through the correct clearing process.

Key responsibilities of a Clearing Broker:

• Clearing: After a trade is executed, the Clearing Broker settles the transaction, ensuring the proper transfer of assets or funds (this is known as clearing).
• Reporting: They provide detailed reports to clients on the status of their accounts, including trade confirmations, margin calls, and account balances.
• Billing: The Clearing Broker also handles billing for trading commissions, margin interest, and other fees, which are charged to the client.
• Pre-trade compliance: They are responsible for ensuring that all trades comply with relevant regulations, including conducting know-your-customer (KYC) checks, suitability assessments, and risk checks before a trade is executed.

In short, the Clearing Broker handles the back-end operations, clearing trades and ensuring that everything is properly settled and reported.

3. Executing Broker

An Executing Broker is responsible for executing trades on behalf of clients, and this is often a separate entity from the Clearing Broker.  While the Introducing Broker brings the client to the firm and the Clearing Broker settles the trade, in between these two the Executing Broker actually executes the trade order in the market.

The key responsibilities of an Executing Broker would include:

• Trading: The Executing Broker takes the client’s orders and executes the trade on the exchange or through a liquidity provider (thery might be involved in market-making or simply routing orders to an exchange).
• Pre-trade compliance: The Executing Broker may also be involved in some compliance aspects, such as ensuring that the trade complies with exchange rules or client restrictions.

4. Futures Commission Merchant (FCM)

A Futures Commission Merchant (FCM) is a type of Clearing Broker that operates in the futures markets. An FCM is a firm that is authorized to handle customer funds, manage futures accounts, and process futures trades.

They are regulated by entities like the Commodity Futures Trading Commission (CFTC) in the US, and are responsible for the actual clearing, settling, and billing of futures contracts.

An FCM focuses on:

• Clearing: The FCM clears futures trades, meaning they process and finalize the transaction and ensure that the correct amount of margin is held in the client’s account.
• Billing: FCMs charge fees for handling the trades, managing margin accounts, and providing client services (and they are also responsible for billing clients for these services).
• Reporting: They provide comprehensive reports for clients, detailing their positions, margin requirements, and any fees incurred.

How is an Introducing Broker Regulated?

In general, regulation of IBs varies based on the market in which they operate, such as the fact that IBs operating in the futures markets must register with the CFTC and become members of the NFA in the US. This regulatory framework imposes strict requirements on Futures IBs, including financial reporting, client disclosures, and adherence to ethical standards.

IBs who aren’t resident in the USA don’t need to be regulated, but they also cannot then refer clients that are US residents.

Why do Introducing Brokers Need to Be Regulated in the USA?

In the United States, IBs are required to be regulated in order to:

• Protect investors: Their regulation ensures that IBs operate transparently and ethically, safeguarding client interests (they often advise clients on opening accounts, executing trades, and managing risk, and without proper regulation, there could be instances where clients are misled, given inaccurate information, or charged unfair fees).
• Maintain market integrity: It upholds the credibility and stability of financial markets by enforcing standards of conduct (unregulated IBs could potentially engage in activities that distort market conditions, such as fraudulent practices or conflict of interest, undermining the entire trading environment).
• Prevent fraud: Moreover, it deters fraudulent activities by holding IBs accountable to regulatory bodies (unregulated IBs might attempt to mislead traders about the risks associated with trading or promise unrealistic returns, or even engage in fraudulent activities, such as misappropriating client funds or operating Ponzi schemes).

In essence, the regulatory oversight provided by the CFTC and NFA in the USA helps maintain a trustworthy trading environment for all market participants.

To be clear, Introducing Brokers (IBs) need to be regulated in the US, and this includes forex IBs as well, although they don’t have to register with the CFTC (see below). 

How are Introducing Brokers Regulated in the USA?

In the U.S., the regulatory bodies that oversee IBs are:

• The Commodity Futures Trading Commission (CFTC): The CFTC regulates the futures markets and ensures that all market participants, including IBs, adhere to financial rules that protect traders (if an IB is involved with futures trading, they must comply with CFTC regulations).
• National Futures Association (NFA): The NFA is a self-regulatory organization for the US futures industry with strict rules regarding the operation of IBs, including requirements for disclosures, client funds protection, and conducting fair business practices (the NFA handles registration for IBs, ensuring they meet ethical and financial standards).
• Financial Industry Regulatory Authority (FINRA): For IBs involved in securities trading, FINRA plays a role in regulating and ensuring compliance with standards (while most IBs in futures and forex are governed by the CFTC and NFA, IBs handling securities could fall under FINRA’s jurisdiction).

Although Forex IBs in the US must also be regulated, there are specific considerations when it comes to the regulation of forex trading, as the forex market falls under a slightly different regulatory structure.

Forex IBs are primarily regulated by the National Futures Association (NFA) and the CFTC, especially if they deal with retail forex transactions. Forex brokers themselves need to be registered with the CFTC as Futures Commission Merchants (FCMs) and Retail Foreign Exchange Dealers (RFEDs). 

As a result, the IBs who refer clients to these brokers must also be registered with the NFA to ensure they comply with US financial regulations.

The regulation for Forex IBs involves:

• Disclosure: Forex IBs must provide accurate information to clients about the risks of forex trading, and they also need to disclose their relationship with the broker and how they earn commissions or referral fees.
• Ethical conduct: Forex IBs must follow ethical guidelines and eschew fraudulent activity or the misleading of clients (including being truthful in advertising and not making misleading claims about potential profits).
• Client suitability: While IBs don’t handle clients’ funds, they must ensure that their clients are aware of the risks involved in forex trading.
• Ongoing compliance: Forex IBs are also subject to the NFA’s oversight for ongoing compliance with all rules regarding conduct, advertising, and client protection.

Forex IBs do not have the same level of mandatory regulatory requirements as Futures IBs, as while Forex IBs need to register with the NFA and comply with its rules, they don’t have to register directly with the CFTC in the same way that futures-focused IBs do.

How to Work as an Unregulated Introducing Broker?

Operating as an unregulated IB, particularly in the forex market and outside of the US (by representing offshore brokers, for example), involves:

• Partnering with a regulated broker: Collaborating with a broker that holds the necessary licenses and regulatory approvals for the jurisdictions in which they operate.
• Complying with local laws: Adhering to the regulations of the jurisdiction in which the IB operates, even if not directly regulated.
• Maintaining transparency: Clearly communicating the nature of your operations as an IB to clients, including any limitations due to the lack of regulation.

While operating as an unregulated IB may limit certain activities, it’s still possible to build a successful business by focusing on client service and compliance with applicable laws. An IB could operate in a jurisdiction where the regulatory framework is lighter or where no specific regulations for IBs exist (some offshore jurisdictions).

However, even in these cases, you might still need to comply with local laws and partner with regulated brokers who themselves adhere to proper regulations (like the CFTC for U.S.-based forex brokers).

Although some offshore IBs might operate in jurisdictions with looser rules, they would still need to partner with regulated brokers to remain compliant, and even those jurisdictions generally require some level of registration or oversight. In reality, most IBs, whether operating in the USA or abroad, are still indirectly regulated through their partnerships with regulated brokers.

Does an Introducing Broker Manage Traders’ Funds?

No, an IB does not manage traders’ funds－it’s a cash-free relationship in an advisory and educational capacity.

All client funds are held by the clearing broker or liquidity provider－the IB’s role is to facilitate the introduction of clients to these entities and provide ongoing support.

Can an Introducing Broker Help You to Learn Trading?

Yes, many IBs offer educational resources to help clients learn trading, and these resources may include:

• Webinars and seminars: Live sessions covering various trading topics.
• Tutorials and guides: Written materials explaining trading concepts and strategies.
• Demo account facilitation: Platforms where clients can practice trading without financial risk and putting strategy suggestions from their IB into play.

What are the Pros And Cons of Introducing Brokers?

In terms of becoming an IB, the pros and cons read as follows:

Pros:

IBs do not need to maintain trading infrastructure, reducing operational costs. You’ll have the ability to grow your client base without significant capital investment. You can partner with multiple brokers to offer a range of services.

They help broaden market access for retail traders and provide education, support, and personalized service to clients. They contribute to the economic ecosystem by generating revenue and creating downline employment and can act as a filter to protect clients from scams or poor-quality brokers.

Cons:

You rely on clearing brokers for trade execution and settlement. Lack of influence over the trading platforms and tools offered to clients. Depending on the services you offer and your jurisdiction, you’ll need to navigate complex regulatory environments (especially for futures IBs).

They can create conflicts of interest if they prioritize their commissions over clients’ needs and may mislead traders by over-promising returns or underestimating risks. Some IBs are unregulated or operate in less transparent jurisdictions, risking client security and can introduce additional complexity and costs, which may not always benefit the trader.

What are the Advantages for Introducing Brokers?

The advantages of becoming an IB include:

• Revenue generation: You’ll be earning commissions and fees from referred clients, while also building up your credibility as a financial markets player of repute.
• Business growth: Potential to expand the client base and increase earnings over time.
• Market presence: You’ll establish a presence in the financial markets without the need for significant capital investment, and open doors into the financial services industry at large.

What are the Disadvantages for Introducing Brokers?

The disadvantages of being an IB involve:

• Operational limitations: Dependence on partners for trade execution and settlement is both a wonderful extension of your service as well as a limitation on your wholesale operation.
• Regulatory compliance: Navigating complex regulations (particularly for futures IBs) can seem significant in comparison to the limited commissions per client you can anticipate.
• Market competition: Competing with other IBs and brokers for client attention and loyalty is unceasing (though in spite of such competitiveness, many IBs find success by focusing on excellent client service and well researched strategic partnerships).

How Does an Introducing Broker Earn Money?

An Introducing Broker generates income primarily through commissions and rebates from the trading activities of clients they refer to their partner broker(s). The specific earnings depend on the broker’s compensation structure, which can vary in both structure and extent.

The commission structures offered to IBs by brokerages are typically a list of common options regardless of the broker, and IBs typically earn commissions in the following ways:

• Per lot commission: Earnings are based on the number of lots traded by referred clients (a broker might, for instance, pay an IB $5 per lot traded).
• Revenue share: IBs receive a percentage of the broker’s spread or commission on each trade executed by their clients.
• Cost Per Acquisition (CPA): IBs earn a fixed amount for each new client they refer who opens and funds a live trading account.

Example:

In an example calculation, suppose an IB refers a client who trades 100 lots of EUR/USD, and the broker offers a $4 per lot commission. The IB’s earnings would be:

100 lots × $4/lot = $400​

If the broker offers a revenue share of 20% on the spread, and the average spread is 2 pips, the IB’s earnings would be:

2 pips × 20% = 0.4 pips per trade

For a trade size of 100,000 units (1 standard lot), 0.4 pips equals $4, so the IB earns $4 per trade.

Is there a Salary for Introducing Brokers?

While most IBs operate on a commission-based structure, some may receive a base salary, especially if they are employed by a brokerage firm, and that salary can be as low as $25,000 per annum or as high as $80,000, depending on jurisdiction and commission structure.

In Dubai, South Africa, the United States and the United Kingdom, Australia, and Canada, as examples, a freelance IB’s compensation is typically built around commissions only. There is usually the potential for additional bonuses based on performance, but earnings can vary widely depending on the IB’s client base (and the volume of transactions they facilitate).

There is seldom a fixed salary available to IBs, even a modest stipend－compensation is almost always commission-based.

What are the Commissions for Introducing Brokers?

Commissions for Introducing Brokers are typically fees or compensation earned by the IB for referring new clients to a broker. The commission structure can vary based on several factors, such as the broker’s policies, the type of assets being traded (forex, futures, or commodities), and the level of service the IB provides.

In the forex market, commissions are often calculated as a percentage of the spread or a fixed fee per trade.

Indeed, IBs may earn commission in the following ways:

• Revenue share: IBs receive a percentage of the spread (the difference between the buy and sell price) or the commission that the broker charges to the trader.
• Flat fee per trade: In some cases, IBs may receive a fixed commission per trade executed by a client they refer.
• Tiered structures: Some brokers use a tiered commission model, where IBs earn a higher percentage as they bring in more clients or generate more trading volume.

How High can the Commissions for Introducing Brokers be?

Commissions for IBs can vary significantly, and there is no one-size-fits-all answer.  Factors that influence the commission size include the type of market (forex, futures, or equities), the broker’s pricing model, and the level of involvement of the IB in servicing clients.

Here’s how the commissions can vary:

• Different pricing models: In the forex market, commissions might be based on the spread (IBs will get a percentage of the spread on each trade) or on a per-contract or per-lot basis. In futures trading, IBs might earn a flat commission per contract, which can be negotiated with the broker based on the volume brought in by the IB.
• Tiered and volume-based commissions: Commissions can also be tiered. For example, an IB may earn a small commission initially but can increase that percentage as they bring in more clients or generate higher trading volumes. This incentivizes IBs to bring in higher volumes of trading activity. Thus, high-volume IBs or those with large client bases might earn substantial commissions because the brokers are willing to pay more to maintain long-term relationships.
• Markup commissions: Some brokers allow IBs to negotiate higher commissions by marking up the spread or commissions charged to the trader. In this case, the IB adds a premium to the broker’s standard rates, which increases their revenue from each trade. This markup can be fixed or based on volume.
• Change of commission: The commission structure isn’t always fixed. Over time, the broker and IB might negotiate new terms based on factors like the volume of clients referred, the level of activity from those clients, and market conditions. This means the IB’s commission can increase or decrease as the relationship evolves or as the market changes.

In short, IB commissions can be highly variable depending on broker policies, client volume, and negotiated terms between the IB and broker. A successful IB could earn anywhere from a few dollars per lot to thousands per month depending on how much business they bring to the broker.

Can an Introducing Broker Add Markup Spreads to Your Trading Account?

Yes, Introducing Brokers can add markup spreads to your trading account, and this is a common practice, especially in the forex market.

How markup spreads work:

• Typically, when you trade with a broker, the spread (the difference between the buy and sell price) is a key factor in your trading costs.
• Brokers will provide their clients with a spread, which can vary depending on market conditions, the broker’s pricing structure, and the liquidity of the asset being traded.
• When working with an IB, the broker may allow the IB to increase or mark up the spread as a way to earn additional compensation.
• The IB adds a percentage or a fixed pip markup to the spread offered by the broker, effectively raising the cost of trading for the client.

In an example of a markup spread, let’s say the broker’s standard spread on a forex pair like EUR/USD is 1 pip. The IB might mark up that spread by 0.5 pips, so the trader pays a 1.5 pip spread instead of the standard 1 pip, and the IB then earns the additional 0.5 pip as part of their commission.

By marking up the spread, the IB can generate additional income without requiring the trader to pay a fixed commission per trade. This is often how forex IBs operate, especially when they don’t directly charge a flat fee or per-trade commission－the spread markup becomes their primary source of income.

Key considerations for you as a trader:

• The markup spread structure is typically transparent, and reputable brokers and IBs will inform their clients about the spread markup.
• However, some less reputable IBs may not clearly disclose this, which can lead to higher-than-expected trading costs for the trader.
• You should always be aware of how spreads work and understand whether your IB is applying a markup to the broker’s standard spreads.
• The spread markup may also fluctuate depending on market volatility or liquidity, and IBs could adjust their markup during different market conditions.
• Markup spreads depend on broker policies－not all brokers allow IBs to add a markup, so it depends on the broker’s structure and their agreement with the IB.
• Some brokers may have fixed spreads or may offer commission-free accounts but with a wider spread.

IB commissions can vary widely depending on the broker, market conditions, and whether the IB is working under a revenue-sharing model or a per-trade commission structure (volume and tiered pricing can also impact how much an IB earns).

Markup Spreads are a common practice where IBs increase the spread above the broker’s standard pricing, and this markup becomes the IB’s commission.

While this is a legitimate way for IBs to earn money, it’s important for you to understand that these markups exist and increase your trading costs.

Who are some Well Known Introducing Broker Examples?

There are several companies that make it their business to act as IBs, and they include EU names like:

• ClsaEurope (a European IB offering partnerships across Europe, also the Middle East, Asia, Latin America, and even Africa).
• XGLOBAL Markets (a more corporate European IB working with financial institutions and investment managers).
• FIBO Group (an international financial holding company that provides online trading services).

In the USA, you’ll find:

• SEC Markets (an IB offering a partnership program for individuals and entities).
• MultiBank Group (a global financial services provider with a presence in the US).

Slightly different in structure but also well known are:

• Tradimo (an education and affiliate hub that refers clients to various brokers).
• EarnForex (an Affiliate/IB comparison site and blog).
• ForexPeaceArmy ( a review and community platform).
• Wisetrader (an investment comparison site).

As opposed to the first entities listed above, these last entries are often individuals or small teams, or even localized agencies that promote their broker preferences on Telegram, WhatsApp, WeChat, or small websites.

They don’t brand themselves openly as IBs—they focus on “signal services,” “mentorship,” or “trading groups”.

Can You Become an Introducing Broker as an Individual?

Yes, individuals can become IBs, particularly in the forex market, and here’s how:

• Choose a broker: Select a broker that offers an IB program and suits your target market.
• Register: Sign up for the broker’s IB program, providing the necessary documentation.
• Promote: Use social media and other marketing strategies to outline your benefits and refer clients to the broker.
• Earn commissions: Receive commissions based on the trading activity of your referred clients.

What is an Introducing Broker Program in Forex Trading?

In forex trading, an IB program involves referring clients to a broker in exchange for commissions.

The program typically includes:

• Marketing tools: Banners, links, and promotional materials from the broker.
• Tracking system: To monitor referred clients and their trading activity.
• Commission structure: Defined payment terms based on client activity.

These form the standard terms of almost any Forex Introducing Broker Program in the forex arena, although the broker’s investment in the tools they supply and the commission they offer varies between companies.

What’s the Difference Between an Introducing Broker and an Affiliate?

While both IBs and Forex affiliates refer clients to brokers, there are some key differences between them.

IBs often have a direct relationship with clients, providing support and guidance, whereas Affiliates primarily focus on marketing, and may not engage directly with clients.

Feature	Introducing Broker (IB)	Affiliate
Client relationship	Maintains direct, personal contact with clients	Typically no personal contact－traffic-based
Support responsibilities	Offers onboarding, training, and ongoing client support	No client support duties
Commission structure	Ongoing revenue share (per lot/trade/volume)	Often CPA (Cost Per Acquisition) or flat one-time fee
Regulatory requirements	May need to register or operate under compliance (e.g. NFA in the U.S.)	Usually none－operates purely in a marketing capacity
Marketing method	Builds personal networks, runs seminars/webinars, etc.	Runs ads, SEO, social media, and email campaigns
Level of involvement	High — part educator, part client manager	Low — focused on traffic generation
Branding control	May use white-label or co-branding options	Limited branding options, generally drives to broker’s site
Suitable for	Professionals or companies with trading expertise	Bloggers, digital marketers, influencers

Last words about IBs:

In summary, IBs are like trusted advisors or local agents who build relationships, often offline, and are more deeply involved in the client’s journey. Affiliates are more like marketers, sending traffic to the broker’s website and moving on after the signup.

So, if you’re more relationship-driven and willing to offer personalized support, becoming an IB is the way to go, and if you’re into digital marketing, content creation, or advertising, an Affiliate role could be more up your alley. Want a recommendation based on your own skills or goals? Let us know－we can help you decide between the two.