IB Guides - Commissions & Deals
Sub-IB and Multi-Tier IB Programs: How Team Commissions Work
Written By
Sofia Bennett
Multi tier IB program explained: how master IBs earn on sub-IBs, how splits are structured, and the red flags to avoid.
A multi tier IB program lets an introducing broker (IB) earn not only from the clients they bring in personally, but also from the activity of other IBs they work with. Those other IBs are called sub-IBs, and the person above them is the master IB. Done properly, it is a way to share the workload of marketing, support and client education across a small team. Done badly, it is a recruitment scheme with trading as a cover story. This guide explains how the commissions work, how splits are usually structured, and which warning signs to take seriously.
What a sub-IB is and where the master IB sits
A sub-IB is an introducing broker who works under a master IB. The sub-IB finds traders, points them to a broker, and earns a rebate or revenue share on those clients' real trading. The master IB sits one level above and receives a share of the commission that sub-IB activity generates.
The structure is simple in principle:
The broker pays commission, because it earns spread, markup or commission from client trading.
The master IB holds the main agreement with the broker and may have the right to appoint sub-IBs.
The sub-IB introduces clients and usually handles the day-to-day relationship with them.
The client trades. Without that, there is nothing to pay anyone.
That last point is the foundation of everything that follows. In a legitimate arrangement, every pound or dollar that reaches a master IB or sub-IB traces back to trading by an actual client at a broker. If you need a refresher on the basics, it helps to understand the single-level model first: a forex IB introduces clients to a broker and is paid on their trading.
How master IBs earn on sub-IBs
A master IB can be paid in two common ways, and the difference matters for the sub-IB.
Carved out of the sub-IB's commission
The broker sets a total commission on the sub-IB's clients, for example a rebate per lot. The master IB takes an agreed portion of it and the sub-IB keeps the rest. The total paid out by the broker does not change; it is simply divided between two people.
Added on top by the broker
In other deals the broker pays the sub-IB their full rate and pays the master IB a separate override on the same activity. The sub-IB's earnings are unaffected by the master IB's share, because it does not come out of their pocket. This depends entirely on what the broker agrees to, and many brokers do not offer it at all.
Whichever model applies, the commission base is the same kind of thing as in a single-level setup: a per-lot rebate, a share of the revenue the broker makes, or in some cases a fixed fee for a qualified deposit. If you are new to per-lot payments, how per-lot IB rebates add up explains how volume turns into earnings.
Ask which of the two models you are in before you do anything else. It is the single most important fact about your deal.
A worked example of a split
This is an illustrative example only. The numbers are hypothetical, are not typical of any broker or programme, and are not a forecast of what anyone will earn.
Assumptions:
The broker pays a total rebate of $8.00 per standard lot traded by the sub-IB's clients.
The sub-IB's clients trade 250 lots in a month.
In the carved-out deal, the master IB takes 20% of the rebate and the sub-IB keeps 80%.
In the added-on-top deal, the sub-IB receives the full $8.00 per lot and the broker separately pays the master IB $1.60 per lot.
Carved-out deal:
Total rebate: 250 lots x $8.00 = $2,000.00
Master IB share (20%, or $1.60 per lot): $400.00
Sub-IB share (80%, or $6.40 per lot): $1,600.00
Added-on-top deal:
Sub-IB: 250 lots x $8.00 = $2,000.00
Master IB override: 250 lots x $1.60 = $400.00
Total paid by the broker: $2,400.00
The master IB receives $400.00 in both versions. The sub-IB receives $1,600.00 in the first and $2,000.00 in the second. That $400.00 difference is why you must know which model you are agreeing to. And in both versions, if the clients trade zero lots, everyone earns zero.
How to agree a fair multi tier IB program split
There is no standard split that is right for everyone, and anyone quoting one as "the industry norm" should be asked for evidence. What is fair depends on who does the work. A sensible way to approach it:
List what the master IB actually provides. That might be a broker relationship, trading education material, a website, support for clients, compliance guidance, or reporting tools. A master IB who provides nothing but a sign-up link has little basis to take a large share.
List what the sub-IB provides. Usually this is the audience and the client relationship. Since they do the introducing, they should expect to keep the larger part of what their own clients generate.
Decide the basis. Is the share a percentage of the rebate, a fixed amount per lot, or a revenue share? Percentages scale with the broker's rate; fixed amounts do not.
Decide how it changes. If the broker changes its rates, does the split stay proportional, or does one side absorb the change? Agree this before it happens.
Write it down. A message thread is better than a verbal promise, and a signed agreement is better still.
Keep the structure shallow where you can. Each additional level takes a slice of the same pot, which leaves less for the person actually introducing the clients. One level of sub-IBs is easy to explain and audit. Several levels quickly become difficult to justify.
It also helps to be honest about the commission model underneath. Rebates, revenue share and fixed payments behave differently and suit different audiences, as the CPA, RevShare and Hybrid models differ in how and when they pay. A split on a fixed payment is a very different proposition from a split on a variable rebate.
Tracking, reporting and transparency
A team commission only works if everyone can see the numbers. At minimum, a sub-IB should be able to expect:
A unique tracking link or IB code that attributes their clients to them and no one else.
Regular statements showing lots traded, rebate earned per lot, and the split applied, not just a final figure.
Clear payment dates and the method of payment.
A defined process for disputes, including who to contact at the broker if the master IB cannot be reached.
Clarity on who receives the money first. If the broker pays the master IB, who then pays the sub-IB, there is counterparty risk. Delays or non-payment are then the master IB's responsibility, and you need to know that.
As a master IB, the same transparency protects you. If a sub-IB disputes a payment, a clean record of lots, rates and splits settles the matter quickly. Keep a copy of every statement and reconcile it against the broker's own reporting each period.
Also check how clients are treated for attribution. If a client is moved between IBs, or the sub-IB leaves, the agreement should say who keeps the commission on existing clients. Leaving this vague is a common source of disputes.
What sub-IBs should check before joining
Before you sign up under a master IB, work through this list.
Who is the broker, and is it regulated? Look the firm up on the register of the regulator it claims to be authorised by. Do it yourself rather than relying on a logo or a link the master IB gives you.
Is the master IB permitted to appoint sub-IBs? Ask for confirmation from the broker, not only from the master IB.
What is the total rate, and what is your part of it? You should be able to see both numbers.
How are you paid, and when? Frequency, minimum thresholds, currency and method.
Can you see your own reporting? If not, how do you verify your statements?
What happens if you leave? Ask about your client base and any trailing commission.
What are the costs? Joining should not require you to pay anyone.
On regulation more broadly: rules about promoting financial products, and about whether you need authorisation or must make particular disclosures, differ from country to country. Check what applies where you operate and where your audience lives. This article is general information and is not legal advice; if you are unsure, take advice from a qualified professional.
If you are coming from another sales model, it is also worth reading what transfers from network marketing to forex IB work and what does not. The biggest difference is that an IB is paid for client trading activity, not for building a downline.
Red flags in a multi-tier IB program
Most problems with team commission structures fall into a handful of patterns. If you see any of these, slow down.
Payouts for recruiting rather than client activity
If you are paid when someone joins your team, rather than when real clients trade, you are looking at a recruitment scheme. A legitimate payment is linked to client trading volume, revenue generated or a qualified deposit at a regulated broker. A bonus for signing up another IB is not a commission on anything.
Fees to join
Being asked to buy a package, a "licence", a course or a starter kit before you can earn is a warning sign. A legitimate IB or affiliate arrangement should not need you to pay in, because the broker pays for the clients, not the introducer.
Many tiers and no clients
Ask how many of the people in the structure have introduced clients who actually trade. A tree with five levels and a handful of active traders suggests the money may be coming from people paying in rather than from trading activity. Ask to see the ratio of active clients to IBs.
Unrealistic income claims
Screenshots of large payouts, promises of "passive income" or targets that "anyone can hit" are not evidence of anything. Commissions depend on clients trading, and clients may stop, lose their deposits or never fund an account. Nobody can honestly promise what you will earn.
Pressure and vagueness
Be wary of countdown timers, "last places" and refusals to put the terms in writing. A real arrangement can survive a day of scrutiny.
Payments that cannot be traced
If no one can show you which clients, which lots and which broker produced a payment, treat it as unverified. Every payout should trace to client trading activity or qualified deposits at a regulated broker, and you should be able to check it.
Where this leaves you
A multi tier IB program is a commission-sharing arrangement, not a source of guaranteed income. The healthy version is small, transparent and based on clients who trade. The unhealthy version rewards headcount instead.
If you are weighing up a team structure, start with the fundamentals: a regulated broker, a clear written split, shallow tiers, and reporting you can reconcile. Then judge any programme by whether the money genuinely follows client activity.
If you would rather start by working directly with a network, Affiwise is a forex and CFD IB and affiliate network that partners with regulated brokers. It offers CPA, Hybrid and RevShare deals, with CPAs up to $700 per qualified FTD depending on broker and GEO, and you will have a dedicated affiliate manager. Details on how we pay are on our payouts page: payouts are weekly, by bank transfer or crypto.
Applying is free. If you want to talk through which deal might suit your audience, send in your application and an affiliate manager will take it from there.
Risk warning: CFDs and forex are complex instruments that carry a high risk of losing money rapidly due to leverage. Figures in this article are illustrative examples, not a guarantee or forecast of earnings.
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Written By
Sofia Bennett
Updated on
