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How Introducing Broker Bonuses Are Calculated
The ForexTime Introducing Broker program is absolutely free. When you refer new clients to us, bonuses will automatically be credited to your account for every trade they make. The system for calculating IB bonuses depends on which type of account your clients choose to open with us.
For Trading Accounts
standard.mt4
An IB’s bonus for a client who opens a classic.mt4 account is 25% of the spread from each completed transaction, as long as:
- The position remains open for at least 5 minutes.
- The position is closed with a profit
or loss of at least 1 spread.
ecn.mt4
An IB’s bonus for a client who opens an ecn.mt4 account is 30% of the commission taken from the client for every completed transaction.
The size of the Introducing Broker's bonuses is also dependent on the monthly trading volume of their referred clients.
For PAMM Accounts
If a referred client decides to invest in a PAMM Account, either as a Manager or as an Investor, the IB will be rewarded a bonus of 30% of the commission for every completed transaction on the Managed Account opened by the client, as long as:
- The referred client was an active Investor in the PAMM Account when the position was opened.
- At least 10 minutes passed from the moment the position was opened to the moment it was closed (or the next Rollover).
Please Note:
Introducing Brokers may not register themselves, their relatives or any other affiliated parties as their clients.
Sample IB Bonus Calculations
Introducing Broker Smith refers 3 clients to ForexTime:
The higher the client's trading frequency and the higher their volume of completed transactions, the larger your bonus as the Introducing Broker.
The spread (our commission for completed client transactions) is divided between ForexTime and the Introducing Broker as follows:
Let's look at the bonuses Smith will earn:
- Ford trades infrequently and at the smallest volumes. His trading generates the smallest bonus for IB Smith (22.5 USD).
- Jackson generates a larger bonus (900 USD) than Ford, since he trades more frequently and at higher volumes.
- Johnson trades less frequently than Jackson, but trades higher volumes. He generates the highest bonus of the three (2,025 USD).
2,025 USD
900 USD
22.50 USD
For clients who open an ecn.mt4 account, the Introducing Broker's bonus compensation is 30% of the commission taken from clients, which, in turn, depends on their trading volume:
- For the trading volume up to 500 million USD: $30 for every million USD
- For the trading volume from 500 million to 1 billion USD: $25 for every million USD
- For the trading volume over 1 billion USD: $20 for every million USD
> $1 Bill.
< $1 Bill.
< $500 Mill.
30 USD
25 USD
20 USD
An Introducing Broker (Smith) convinces his client (Johnson) to join our company.
Johnson
Trading Volume: 1,850,000,000 USD per month
The total commission1 Johnson will pay for the month, calculated as shown below, is 44,500 USD:
- For the trading volume up to 500 million USD: (500,000,000 / 1,000,000) х 30 = 15,000 USD
- For the trading volume from 500 million to 1 billion USD: (500,000,000 / 1,000,000) х 25 = 12,500 USD
- For the trading volume over 1 billion USD: (850,000,000 / 1,000,000) х 20 = 17,000 USD
So Smith's bonus as the Introducing Broker, based on Johnson's trading over the month, will be 30% of 44,500 USD, or 13,350 USD.
Please Note:
1 Commission is effectively doubled for round-turn trades (positions opened and closed), as commission is awarded both for the opening and closing of a position.
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