An introducing broker (IB) is a person or company that refers traders to a forex broker and is paid by the broker, usually a share of the spread or commission, or a fixed fee per qualifying client. You open and fund the account with the broker directly; the IB never holds your money.
How does an introducing broker arrangement work?
The broker gives the IB a unique partner link or code. When you register through it, your new account is tagged to that IB. From then on, the broker shares part of the revenue from your trading with the IB. Your account, your deposit and your trades stay with the broker, under the broker's client agreement and regulation.
How do introducing brokers get paid?
| Model | How it works | Paid by |
|---|---|---|
| Rebate per lot | A fixed amount for each lot the referred client trades | The broker |
| Revenue share | A percentage of the spread or commission the broker earns | The broker |
| CPA (cost per acquisition) | A one-off fee when a referred client funds and trades | The broker |
In all three, the money comes out of the broker's revenue, not out of your account balance.
Does signing up through an IB cost you more?
Usually not. Most brokers offer the same account types and pricing whether you register directly or through a partner. Some arrangements do add a mark-up to the spread, so compare the account's spread and commission with the broker's public pricing for the same account type before you fund it.
IB vs affiliate vs money manager: what is the difference?
| Role | What they do | Access to your account |
|---|---|---|
| Introducing broker | Refers clients and often supports them (education, tools, EAs) | None |
| Affiliate | Refers visitors through marketing, usually paid per sign-up | None |
| Money manager | Trades on the client's behalf under a formal mandate | Trading access by agreement |
An IB that asks for trading access, your password or your money is no longer acting as an IB. Walk away.
How do you check that a partner link is safe?
- Check the link lands on the broker's own website, and register there.
- Deposit only inside the broker's client area, never to a person or a private account.
- Read which legal entity you are signing with in the client agreement, and check that entity's regulator.
- Never share your MT5 master password. A partner only needs your account number to confirm the referral.
- Look for a clear affiliate disclosure on the partner's website.
How does Illuminati Forex use the IB model?
Illuminati Forex is an introducing partner of Markets4you and XS. When you open an account through our partner links, the broker may pay us a referral commission. That commission is what lets us provide our Expert Advisors without a purchase price, as explained in how free gold EAs work. We never hold client money and never ask for passwords. The full disclosure is on Risk & Disclosures.
Questions, illuminated
Is an introducing broker the same as the broker?
No. The broker holds your account and executes your trades. The introducing broker only refers you to the broker and is paid by the broker for that referral.
Can an introducing broker access my money?
No. Your deposit goes to the broker, into your own account. A genuine IB has no access to your funds or your trading.
Can I switch to a different IB later?
Some brokers allow a partner change on request, others require a new account. Ask the broker's support before you move.
Is using an IB legal?
Yes. Introducing broker programmes are a standard, disclosed part of the forex industry. Regulated brokers set the rules their partners must follow.
The bottom line
An introducing broker is a disclosed referral partner paid by the broker, not by you, and it never touches your money. Register on the broker's own site, deposit only in the broker's client area, keep your password to yourself, and an IB link costs you nothing extra in most cases.