Recognise a good deal
An IB deal is a contract about money, risk and time. Judge all three before the headline rate.
The five deal types
| Model | You are paid | Suits | Check first |
|---|---|---|---|
| Rebate per lot | A fixed amount for every lot your clients trade, win or lose. | Active, high-volume traders. | Which instruments count, and whether rates differ by product. |
| Spread share | A share of the markup the broker adds to spreads. | Clients on standard accounts. | Your income moves when spreads widen or tighten. |
| CPA | One payment per client who deposits and meets a condition. | Fast growth from a large audience. | The qualifying condition and any clawback period. |
| Revenue share | A percentage of the broker's net revenue from your clients. | A stable book built over years. | How negative months are treated and whether they carry forward. |
| Hybrid | A smaller CPA plus a lower rebate or revenue share. | IBs who want early cash and long-term income. | Total value over twelve months against the pure models. |
The ten-point scorecard
Tick each statement you can prove from the contract or a live test. The score is a rule of thumb for deciding where to negotiate.
Tick what you can prove to see where the deal stands.
Red flags
- The broker or its marketing promises clients a profit or a return.
- A rate far above every other offer, with no explanation of how it is funded.
- No regulator name or licence number you can look up.
- Payouts that arrive late, change in size or need chasing.
- Pressure on you or your clients to deposit more to keep a rate or a bonus.
- Changes to the terms without written notice.