Payment plans
The partnership program is based on a revenue sharing approach: through their partners, brokers attract new traders and pay out these partners a percentage of what they earn from newly referred active traders. In other words, when a broker receives a commission for a trade executed by their client, the broker pays out a part of this commission as a reward to the partner who referred this client.
A payment plan is a part of IB type configuration that the broker sets up when launching a partnership program. Reward options can be configured for opening or closing positions, or both. Each option can be applied to a single symbol or to a group of symbols. For a step-by-step tutorial, refer to How to configure rewards.
The available payment plans are described below.
Commission
This payment plan is applicable to the following trading platforms:
MetaTrader 4
MetaTrader 5
B2Trader
cTrader
A broker pays their partners a fixed percentage of commissions received for trades executed by their clients:
Reward amount = Commission × Percentage
Consider an example of Jack, whose clients brought 70 USD in commissions while the payout ratio is 10%.
In this case, the amount rewarded to Jack is calculated as follows: 70 USD × 0.1 = 7 USD.
Lot
This payment plan is applicable to the following trading platforms:
MetaTrader 4
MetaTrader 5
cTrader
A broker pays their partners a fixed amount for each lot traded by their clients:
Reward amount = Traded volume, in lots × Amount per lot
Consider an example of Jill, whose clients have traded 10 lots (1 lot = 0.1 ETH) while the reward amount per lot for ETH/EUR is 2 USD.
In this case, the amount rewarded to Jill is calculated as follows: 10 lots × 2 USD = 20 USD.
Note
The reward currency doesn’t depend on the traded symbol.
If a partner’s wallet currency differs from the quote currency, then the reward amount is converted to the wallet currency when the reward is being credited.
Max amount
This payment plan is applicable to the following trading platforms:
MetaTrader 4
MetaTrader 5
cTrader
A broker pays their partners a fixed amount for each lot traded by their clients, while also having the opportunity to specify both the maximum reward amount and the reward amount for each configured level.
With the Lot payment plan, a broker specifies the reward amount per lot for Level 1. The rewards for subsequent levels (if configured) are calculated as a percentage of Level 1 reward.
With the Max amount payment plan, a broker limits the total amount of rewards paid to partners regardless of the number of levels, and then specifies the exact amount which a partner receives at each level. The following example illustrates how the reward amount can be distributed depending on the number of levels.
1 level |
2 levels |
3 levels |
4 levels |
5 levels |
6 levels |
|
|---|---|---|---|---|---|---|
Level 1 |
10 USD |
8 USD |
5 USD |
5 USD |
4 USD |
3 USD |
Level 2 |
2 USD |
3 USD |
3 USD |
2 USD |
2 USD |
|
Level 3 |
2 USD |
1 USD |
2 USD |
2 USD |
||
Level 4 |
1 USD |
1 USD |
1 USD |
|||
Level 5 |
1 USD |
1 USD |
||||
Level 6 |
1 USD |
Consider an example of Jack, whose direct clients have traded 10 lots.
Since the rewards are distributed only at a single level, the amount rewarded to Jack is calculated as follows: 10 lots × 10 USD = 100 USD.
Next, consider an example of Jill who participates in Jack’s sub-partnership program. If Jill’s direct clients have traded 10 lots, then the rewards are distributed at two levels:
at Level 1, the amount rewarded to Jill is calculated as follows:
10 lots × 8 USD = 80 USDat Level 2, the amount rewarded to Jack is calculated as follows:
10 lots × 2 USD = 20 USD
In this case, the total reward amount is 100 USD, that’s 10 USD per each traded lot.
Markup
This payment plan is applicable to the following trading platforms:
MetaTrader 4
MetaTrader 5
cTrader
A broker pays their partners rewards based on the volume traded by their clients and a markup specified in points:
Reward amount = Traded volume, in lots × Markup, in points
For example, the markup set on a platform is 14 points, and Jack decides to pay partners 1/7 of this markup value, that is 2 points.
After Jack’s clients have traded 10 lots of AUD/CAD, the amount rewarded to Jack is calculated as follows: 10 lots × 2 points = 20 CAD.
Note
The reward currency doesn’t depend on the traded symbol.
If a partner’s wallet currency differs from the quote currency, then the reward amount is converted to the wallet currency when the reward is being credited.
Markup %
This payment plan is applicable to the following trading platforms:
MetaTrader 4
MetaTrader 5
cTrader
A broker pays their partners a percentage of a markup value per each trade executed by their clients. The calculations vary depending on the trade side:
Reward amount for buy orders:
Traded volume × Trade price × 2 × Markup value / ( Markup value - 1)
Reward amount for sell orders:
Traded volume × Trade price × 2 × Markup value / ( Markup value + 1)
For example, the markup value is 0.0001 and a client of Jill buys 10 lots of EUR/USD for 6,996 USD each.
In this case, the amount rewarded to Jill is calculated as follows: 10 × 6,996 USD × 2 × 0.0001 / (0.0001 – 1) = -13.99 USD.
In this example, the markup value equals 0.0001, or 0.01%, based on the assumption that one standard lot has 100,000 units of the base currency.