IB Rebate Tools: Per-Lot vs Spread-Share Models

IB Rebate Tools: Per-Lot vs Spread-Share Models

What it is: Introducing-broker rebate calculators and panels that pay you on client trading volume — either fixed per-lot or a share of the spread.

Best for: IB affiliates whose clients trade actively, not one-and-done depositors.

Pros (per-lot rebate):
— Predictable: $X per standard lot, easy to forecast and show clients
— Pays regardless of whether the spread is wide or tight that session
— Simple reconciliation against the broker's volume report

Cons (per-lot rebate):
— On tight-spread pairs you may earn less than a spread-share would yield
— Brokers can cut the per-lot rate unilaterally

Pros (spread-share):
— Scales up during volatile, wide-spread sessions (news events)
— Aligns your earnings with the broker's actual revenue

Cons (spread-share):
— Opaque — you rarely see the real spread the broker captured
— Markup brokers can quietly compress your share by narrowing displayed spreads

The overlooked detail: per-lot is auditable, spread-share usually isn't. If you can't independently verify the spread, you're trusting the broker's math on your own pay. Demand a per-trade volume export either way and spot-check it.

Who should skip this: Affiliates whose clients deposit and never trade — IB rebates earn nothing; take CPA instead.

Verdict: Per-lot if you can't audit.