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Comparison table highlighting the key differences between Introducing Brokers (IB) and Affiliates in the FX industry

Aspect                 

Introducing Broker (IB)

Affiliate

 

Role

Directly refers clients to the broker and often provides personalized support. Refers clients via digital marketing channels without personalized engagement.
 

Relationship with Clients

Builds long-term relationships and offers trading assistance. Typically, no direct interaction with referred clients.
Commission Structure Earns commissions based on clients’ trading volume or spreads. Paid a fixed amount (CPA) or a share of revenue (RevShare) per referral.
Marketing Method Uses personal networks, seminars, and one-on-one communication. Relies on online campaigns, SEO, PPC, and social media marketing.
Client Retention Focuses on retaining clients to maximize lifetime commissions. Client retention is usually the broker’s responsibility.
Compliance Requirements Higher compliance standards, including KYC responsibilities. Lower compliance obligations, mainly focusing on accurate marketing.
Level of Expertise Requires a deeper understanding of financial markets and trading. Basic understanding of FX sufficient, with a focus on marketing strategies.
Target Audience Traders looking for advice and ongoing support. Online traffic or general audiences interested in FX trading.
Payment Frequency Payments often depend on trading activity over time. Payments are usually made based on successful referrals (CPA/RevShare).

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