What Is an Introducing Broker (IB)? How Cashback Sites Make Money
What is an Introducing Broker (IB)?
An IB (Introducing Broker) is industry terminology for a partner that refers new traders to an FX broker. As part of their marketing, FX brokers pay IBs a referral commission based on referral performance and trading volume every time an IB refers a trader. Many cashback sites partner with FX brokers in this IB capacity.
Why cashback sites are free to use
Cashback sites work by passing on part of the referral commission they receive from FX brokers as an IB to traders. Traders never need to pay to use a cashback site — instead, part of the referral commission (a payment from the FX broker to the IB) is passed through to the trader in the form of cashback.
Because of this structure, cashback sites have a financial partnership with FX brokers — a relationship that can constitute a conflict of interest. ForexCB discloses this explicitly on our About ForexCB page.
ForexCB's revenue structure
ForexCB partners officially with Exness, HFM, XS.com, and Axi. Cashback is returned through the auto-rebate method: the broker's own system calculates and pays the cashback amount directly, so ForexCB has no way to alter the amount.
Using ForexCB is completely free — there is no registration fee, monthly fee, or withdrawal fee. Trading conditions (spread, leverage, etc.) are also identical to a regular account.
More about how the rebate works
The "auto-rebate method," in which the broker's system automatically calculates and pays out the rebate, is explained in detail in the article below.
What Is Auto-Rebate? How It Differs From Manual Rebate →See supported brokers
Frequently asked questions
Is an IB the same as an affiliate?
In a broad sense, they're similar concepts. IB (Introducing Broker) is industry terminology for the role of referring traders to an FX broker, and can be thought of as a type of affiliate partner within the FX industry.
Which brokers is ForexCB an IB for?
ForexCB partners as an IB (partner) with Exness, HFM, XS.com, and Axi.
Is there any disadvantage to users in using ForexCB?
Using ForexCB is completely free, and users never bear any cost. Trading conditions (spread, leverage, etc.) are also identical to a regular account. ForexCB uses the auto-rebate method, under which the broker's system directly calculates and pays the cashback amount, so the operator has no way to manipulate the amount either.