How the calculation works
Every rebate model comes down to three numbers multiplied together:
Active clients × lots traded per client × your rebate rate
The word doing the work is active. Not referred, not signed up, not even funded — someone who opened an account and never traded is worth nothing to you. That's why the model above assumes only a share of referred clients become active traders.
Why deposit size isn't in the formula
Because you aren't paid on deposits. You're paid on volume. A client with $500 who trades most days generates more rebate than a client with $50,000 who places one trade a quarter. Chasing wealthy referrals instead of engaged ones is the most common mistake I see, and it sends people hunting entirely the wrong audience.
How to use this honestly
- Model the low case.Run it with what you'd consider a disappointing result. If that's still worth your time, you have a real opportunity. If only the optimistic case works, you're relying on things going right.
- Be brutal about the drop-off. Not everyone you refer signs up, not everyone who signs up funds, and not everyone who funds trades consistently. The attrition at each stage is steeper than people expect.
- Remember it doesn't know your audience. It has no idea how much your clients trade or how long they stay — the two things that actually decide the outcome.
What moves the number most
Not the rebate rate. Retention. A client still trading a year later has been paying you every month since; a client who quits after four weeks paid you once. Partners who stay present after the referral — checking in, answering questions, escalating problems — get paid longer, which is worth more than negotiating a higher rate.
More on that in what makes a good introducing broker, or read how much forex IBs actually earn for the full breakdown.
This calculator is illustrative only. It is not a projection, guarantee or promise of income — what you earn depends entirely on your audience and their trading activity. Trading carries risk and many retail traders lose money. Please read the risk disclosure in full.