Video summary

What Is A Master IB In Forex? | All Details & Program Types

Main summary

Key takeaways

Finance

What a “Master IB” Is (Structure)

  • A Master Introducing Broker (Master IB) oversees Introduced Brokers (IBs).
  • The Master IB refers clients up to a forex broker.
  • The Master IB also recruits and refers other IBs, creating a multi-level (“pyramid”) commission tree.
  • The video describes commissions being earned down the hierarchy, including up to 5 sub-levels (and an 8-level option with another broker).

How Earnings Are Generated (Core Mechanism)

The Master IB earns a portion of commissions/revenue generated by:

  1. Clients referred directly (and through the IB chain), and
  2. Other sub-IBs they recruit.

Key idea: Once the Master IB recruits level-1 IBs, those level-1 IBs recruit further sub-IBs, and the Master IB earns additional revenue from downstream layers.

Commission Examples / Percentages Cited

  • Level-1 example: Master IB receives ~20% of the profit/commission share from level-1 activity
    • If level-1 earns $10,000/month, Master IB earns $2,000/month.
  • Level-2 example: Master IB receives ~10% share
    • If downstream earns $50,000/month, Master IB earns $5,000/month.
  • The video also mentions downstream shares can reduce to ~5%, 2%, 1% (or similar), depending on the tier.

Types / “Program Models” of Master IB Partnerships

1) “Fair” Revenue/Share Model (Spread-Based, Equal Treatment)

  • Example stated: Master IB earns 80% of the spread.
  • Sub-IBs are described as receiving the same deal (e.g., 80% or 85% of spread, per the script wording).
  • The broker shares commission/revenue downstream, described as fairest because everyone is paid equal within that structure.
  • Mentions a tier/level commission schedule with percentages (as shown in the RoboForex affiliate example).

2) Profit/Revenue Share With “Rebate-Back” to Sub-IBs

  • Master IB earns a stated portion from the broker (e.g., 35%).
  • From that, the Master IB “gives money back” to sub-IBs.
    • Script concept: sub-IBs effectively receive additional value calculated as 35% of which 50% is rebated (implying ~17.5% more to sub-IBs, per the narration).
  • Goal: make it more attractive for Master IBs to recruit and retain subs by improving effective payout.

3) Master IB With a Negotiated Deal Per Lot/Trade (Per-Lot Split)

  • Script scenario: existing clients generate a high commission rate (e.g., “$8 per lot per trade”).
  • A new sub-IB might not receive the full $8 until they prove performance.
  • Master IB can split the deal so subs earn less but still well:
    • Example described: subs get around $7 or $7.5, Master IB keeps about $1.
  • Mentions the structure can extend down to 5 levels, with allocations stepping down to smaller amounts (illustrative only).

4) Markup/Spread or Commission “Extra Charge” Model (Less Preferred)

  • Master IB adds a markup (script indicates it adds to spreads/commission).
  • Traders pay more, and Master IB shares part of that markup downstream.
  • Illustrative example (as described):
    • Markup: +$5
    • Trader pays additional money (script mentions trader paying more, e.g. $7) and may receive $6
    • Portion of markup (e.g., $4) shared with sub-affiliates
  • Video caution/dislike:
    • Presenter says they don’t like markups because they make trading more expensive for traders.
    • However, markups can be “good” if they fund services like coaching, indicators, or software.

Brokers / Programs / Partnership Names Mentioned

  • RoboForex
    • Mentioned for the “fair” Master IB program model.
    • References an expert IB affiliate program with multi-level commissions.
    • Cites percentages including 35%, plus smaller level percentages such as 2%, 15%, 12.5%, 10% (as narrated).
    • Also mentions a copy trading platform for referring traders.
  • FP Markets
    • Mentioned as best for the:
      • Per-lot deal sharing model
      • Markup deal model
  • Onfin
    • Mentioned for an 8-level partnership structure.
    • Video states there are no additional trader fees (per the script).
    • Level payout percentages mentioned for 8 tiers: 50, 15, 10, 6, 4, 3, 2, 1 (as described).

Explicit Timelines / Performance Metrics / Targets

  • No macroeconomic or market performance metrics are discussed.
  • The only “performance” numbers are commission examples, such as:
    • Monthly earnings scenarios (e.g., $10,000/month → $2,000/month; $50,000/month → $5,000/month)
    • Commission-per-lot examples (e.g., $8 per lot, then shared down)

Risk/Disclaimer Notes

  • The transcript provided does not include an explicit “not financial advice” or regulatory disclaimer.
  • It does include caution about markups potentially making trading more expensive for traders.

Methodology / Framework (as Described)

Build a Referral Pyramid

  • Recruit level-1 sub-IBs
  • Ensure level-1 recruits further sub-IBs (level-2, etc.), up to about 5 levels
  • Earn commissions from:
    • Client activity driven by referred users, and
    • Downstream recruiting activity from sub-IBs

Choose a Partnership Model

  • Revenue/share model (spread-based, equal payout described)
  • Rebate-back model (Master IB rebates part of its share to subs)
  • Per-lot commission sharing model (negotiated split of $/lot)
  • Markup model (adds extra trader cost; video says it’s less preferred)

Presenters / Sources

  • Presenter: Not named in the subtitle text.
  • Sources/Brokers referenced: RoboForex, FP Markets, Onfin.

Original video