An IB (Introducing Broker) commission is the payment you earn for referring clients who trade with the broker. The exact commission calculation depends on the commission structure agreed upon with your Account Manager.
There are two common commission structures:
Method 1 – Per Lot (Fixed Amount)
Under a per-lot structure, your commission is calculated based on the agreed rebate amount and the total number of lots traded.
Formula: Commission = Rebate per Lot × Number of Lots
Example: $12 per lot × 2 lots = $24 commission
Method 2 – Points-Based
For certain instruments, such as US100, commissions may be calculated based on the traded volume, contract size, price precision, and the agreed points.
Formula: Commission = Volume × Contract Size × Price Precision × Points
Example: 5 × 10 × 0.01 × 30 = $15 commission