As an Introducing Broker, your compensation is based on the trading volume of your clients and the type of account they trade. Compensation will be calculated each time one of your referred clients makes a trade.Become an IB
Introducing Brokers can earn 25% of the average spread for each trade made on standard.mt4, pamm.standard.mt4 (PAMM managers) and invest.pamm (PAMM investors) accounts.1
Since compensation is taken from the spread, it follows that the more volume an Introducing Broker's clients trade, the more the IB will earn in compensation.
An IB's compensation depends both on how many trades a client makes and how frequently they trade. Here's an example to show you how this works:
An Introducing Broker refers 3 clients to Alpari.
The bigger and more frequent a client trades, the more the partner earns.
Trading volume for client 1
Trading volume for client 2
Trading volume for client 3
The spread will be distributed between the IB and the company as follows:
Here's how this all works out:
As you can see in the example, an IB's compensation doesn't just depend on how many trades their referred clients make, but also on the size of each trade.
Alpari only awards compensation for trades made on pamm.standard.mt4 accounts if:
For ecn.mt4 accounts, an Introducing Broker (IB) takes 30% of the commission from the clients they introduce. The size of the commission depends upon the trade volume of the client and is described on the Trading terms page.
Commission is included in the spread on ecn.mt4 accounts, and partner bonuses are calculated based on the following fixed value agent commission: the percent of the fee × 3 × volume of client trades. If the base currency is not in USD, then the resulting amount must be calculated using the appropriate exchange rate of the base currency to USD.
Let's look at an example.
The IB introduces 10 clients who open an ecn.mt4 account in the month.
In the month, each client makes 20 trades, and all clients trade the currency pair EURUSD.
Using the formula to calculate earnings for each client: 30% (the percent awarded to the partner) × 3 (fixed value of agent commission) × 20 (trade volume) × 1.3 (exchange rate of EURUSD, as the base currency of the exchange pair is EUR) = 23.4 USD.
So in total, the Introducing Broker will earn 23.4 USD × 10 = 234 USD.
The compensation that partners can earn for bringing in clients who either invest in, or open a PAMM Account depends upon the type of PAMM Account and the share of the client's funds in the account. Calculations for investors in the PAMM service are based on the amount they invest, and calculations for managers are based on the amount of the manager's own funds.
For Standard accounts, the partner earns 25% of the spread on trades made by the clients they introduce. For ECN accounts the partner takes 30% of the commission on trades made by the clients they introduce.
For example, the IB attracts Investor 2. For standard accounts, he receives 25% of the spread on trades which are made using the funds invested by the clients which he attracts, and for ECN accounts – 30% of the commission.
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