A forex introducing broker (IB) is a company or person that refers traders to a broker and earns a commission on the trading those clients do. Some IBs, including JFRebate, share part of that commission back with the trader as cashback. This guide explains how it works, why it does not change your spreads, and how to judge a rebate program honestly.
What Is an Introducing Broker?
Brokers pay for client acquisition. Instead of only advertising, many brokers run IB or partner programs: the IB brings in new clients and receives a share of the spread or a fixed amount per lot the client trades. The broker still serves the client directly; the IB does not hold your funds.
How IBs Are Paid
- Per-lot commission: a fixed amount for each lot you trade.
- Revenue share: a percentage of the spread the broker earns.
- CPA: a one-time fee when the referred client deposits or reaches a trading volume.
How an IB Rebate Works
A rebate IB passes part of its commission back to you. If an IB receives, say, $10 per lot and returns $6, you receive $6 for every lot you trade, win or lose. Rebate rates differ by broker, account type and instrument. See how this works in practice in how the JustMarkets rebate works and how the Headway rebate works.
Does a Rebate Change My Trading Conditions?
No. Your spreads and commissions are set by the broker and are the same whether or not you register through an IB. The rebate is paid from the IB’s commission, not from your trading costs. It lowers your effective cost by returning money after the trade.
What to Check Before Joining a Rebate Program
- Is the broker trustworthy? A large rebate is worthless if you cannot withdraw. Verify regulation; see regulated forex brokers.
- Does it apply to a new account? Rebate usually only works on accounts opened through the IB’s link; existing accounts cannot normally be linked.
- How and when is it paid? Look for a transparent payout schedule and method.
- Which account types are included? Rates can differ on Cent, Standard, Pro or Raw accounts.
- Is the IB open about earning a commission? A trustworthy site discloses it.
Do Not Choose a Broker Only for the Rebate
Rebate reduces cost; it does not create profit. Pick the broker for regulation, platform and trading conditions first, and use cashback as a bonus. Compare options in brokers with rebates and learn the maths in how to calculate your rebate.
Disclosure
JFRebate is an introducing broker. We earn a commission from the brokers we review, and return part of it to traders as rebate. We state this on every review so you can judge our recommendations.
Types of IB Programs
| Type | How it works |
|---|---|
| Rebate IB | Passes part of the commission back to referred traders |
| Standard IB / affiliate | Keeps the commission and earns from client activity |
| Master IB and sub-IBs | A multi-level structure where sub-IBs recruit clients and the master IB shares revenue |
| White label | A company runs its own branded brokerage using another broker’s infrastructure |
JFRebate is a rebate IB: we refer traders to the brokers we review and return part of the commission to them.
An Illustrative Rebate Calculation
The figures are examples to show the arithmetic; real rates depend on the broker, the account type and the instrument.
| Monthly volume | Rebate at per lot | Rebate at per lot |
|---|---|---|
| 10 lots | ||
| 50 lots | 0 | 0 |
| 100 lots | 0 | 0 |
Compare that with the cost of trading: on a pair with a 1-pip spread, 100 lots cost roughly $1,000 in spread. A rebate of $200 to $400 would return 20% to 40% of it. That is why active traders value cashback, and why rebate matters little to someone who trades one lot a month. See the broker-specific maths in how to calculate your JustMarkets rebate.
Rebate vs Cashback vs Bonus
- Rebate / cashback: a refund of part of the trading cost, paid per lot traded.
- Bonus: extra trading credit from the broker, usually with withdrawal conditions. See forex no deposit bonus terms.
- Spread discount: a lower spread given directly by the broker, which an IB cannot normally change.
How to Check That an IB Is Legitimate
- The broker should confirm the partnership. Check that the IB link goes to the broker’s official registration page.
- The IB should publish clear terms: rate per lot, payout method and frequency, and which accounts qualify.
- The IB should disclose that it earns a commission. Be wary of sites that do not.
- There should be a contact method and a real business identity. We list ours on the About page.
- Never send money to an IB. You deposit only with the broker.
Red Flags in Rebate Offers
- A rebate far above what the broker could pay, which suggests it will not be paid.
- A request to deposit through the IB rather than directly with the broker.
- Rebate offered on an existing account without any change at the broker, which is usually impossible.
- Pressure to choose a high-risk broker because it pays the IB more.
Becoming an IB Yourself
If you run a website or community, many brokers offer partner programs. You usually register through the broker’s partner portal, receive tracking links and are paid according to the plan. Be transparent with your audience about the commission, recommend only brokers you have verified, and do not promise profits. A partner program does not change what you owe in taxes, so check the rules where you live.
Why Brokers Pay Introducing Brokers
A broker earns money from the spread, from commissions and sometimes from swap. Winning new clients through advertising is expensive, and a client who trades regularly is worth much more than the one-off cost of finding them. Paying an IB a share of the revenue that client generates is a way to pay for acquisition only when the client actually trades. A rebate IB then returns part of that share to the trader, which is why the broker’s trading conditions stay unchanged.
What a Rebate Usually Covers (and What It Does Not)
- Usually covered: per-lot trading volume on closed trades on eligible instruments.
- Often not covered: bonus-funded volume, certain instruments and accounts, or trades opened and closed within a very short time.
- Never covered: your trading losses. A rebate does not protect you against a losing trade.
Questions to Ask Any Rebate Provider
- Which broker accounts and instruments qualify, and at what rate per lot?
- Is the rebate paid on closed trades only? When is it paid and how can I withdraw it?
- Is there a minimum payout threshold?
- What happens if I trade with a bonus?
- Can I see my tracked volume and rebate history?
- How do I contact you if the volume does not match my records?
How to Verify That Your Rebate Is Tracked
After opening your account, check the partner or IB code displayed in your client area if the broker shows it, make a small number of trades and see whether they appear in your rebate dashboard or statement after the period closes. If something does not match, contact the rebate provider early with your account number and trade tickets. Tracking works through the link used at registration, which is why existing accounts generally cannot be added later.
More Questions Answered
Does an IB rebate change my spreads or commission?
No. Your trading costs are set by the broker and stay the same whether or not you use an IB.
Is rebate paid on losing trades?
Yes. It is based on volume, not on whether the trade made a profit.
A Quick Way to Judge Whether a Rebate Matters to You
Estimate your monthly volume honestly. A trader who places 20 trades of 0.10 lots a month trades only 2 lots, so even a generous rebate is a few dollars. A trader who runs a high-frequency or grid strategy might trade hundreds of lots, and then the rebate can offset a meaningful part of the cost. Use that estimate to decide how much time to spend comparing programs. Whatever your volume, choose the broker first for regulation and conditions, and only then compare rebate programs on the same broker. See the broker-specific pages for JustMarkets and Headway, and read how we work in the About page.
Key Takeaways
- An IB refers clients to a broker and earns a commission on their trading.
- A rebate IB shares part of that commission with you per lot, win or lose.
- Rebate does not change your spreads and usually applies only to new accounts opened through the link.
- Choose the broker on safety and conditions first; the rebate comes second.
FAQ
Is an IB the same as a broker?
No. The IB refers clients; the broker holds your account and executes trades.
Is cashback taxable?
Rules differ by country. Check your local tax rules or ask a tax professional.
Can I get rebate on an existing account?
Usually not. Most programs require opening a new account through the IB link.
Can I become an IB?
Many brokers have partner programs. Check their requirements and be transparent with your audience.
Open a JustMarkets Account & Activate Rebate →
Open a Headway Account & Activate Rebate →
Risk Disclaimer: Trading forex and CFDs carries a high level of risk and may not be suitable for all investors. You can lose all the money you deposit. JFRebate earns a referral commission from brokers it reviews; this never changes the spreads you pay. This article is for information only and is not financial advice.
Om Erick, CTA, is a Certified Technical Analyst and a forex trading veteran active since 2010, recognized as one of the Top 35 Best Traders in the World (MQL5, 2024). As the author of “Belajar Trading dari 0” and “Psikologi Trading,” as well as an active Psychological Trading Coach, Om Erick is dedicated to providing objective, data-backed trading guidance. Through JFRebate, he helps traders achieve peak performance by providing access to trusted brokers and a transparent, industry-leading rebate system.