Introducing Broker Agreement: A Clause-by-Clause Checklist

An introducing broker agreement is the contract between a broker and the IB who refers clients to it. A good one sets out how the IB is paid, when, on which clients, what they may and may not do when promoting the broker, who owns the client relationship, and what happens when the partnership ends. Most disputes between brokers and IBs trace back to a clause that was missing or vague.

This checklist covers the clauses we expect to see in every IB agreement, from both sides of the table. Use it to review a template, prepare for a negotiation, or check a contract you’ve already signed.

One note before the list: this is a practical guide, not legal advice. IB contract terms interact with licensing, marketing and data protection rules that differ by country and change often. Have the final agreement reviewed by a lawyer who knows financial services in the relevant jurisdictions.

Why the introducing broker agreement matters

A handshake deal feels fine until the first disputed payout. Then each side remembers the terms differently. A written introducing broker agreement protects the IB from changes made without notice, and protects the broker from claims it never agreed to. It also matters to regulators: the broker is usually responsible for how its IBs market, and the agreement is where that responsibility is passed down and controlled.

IB agreement checklist: commercial terms

1. Commission model and rates

• Which model applies: CPA, per-lot rebate, revenue share or a hybrid.
• The exact rates, per instrument where they differ (FX, gold, indices, crypto CFDs).
• Any tiers and the thresholds that trigger them.
• For revenue share, how net revenue is defined and which costs are deducted.
• That rates can only change by written agreement, with notice.

For context, deals in our network are competitive at the upper end of the market, built for long-term partnerships, and every deal is negotiable. Our guide to forex IB commission structures explains each model.

2. Qualification rules

• What makes a client “qualified” for CPA: minimum first deposit, minimum lots or trades, minimum trading days, and the time window to meet them.
• That the client must be new to the broker and pass KYC.
• Which countries are eligible.

Write numbers, not adjectives. “Genuine activity” leads to arguments.

3. Payout cadence and method

• Payment frequency (monthly, weekly) and the exact date.
• Currency, payment method and who pays transfer fees.
• Minimum payout amount, if any, and what happens to balances below it.
• The statement the IB will receive with each payment.

4. Hold period

• How long commission is held after a client qualifies or trades before it becomes payable.
• Any different hold for CPA and rebates.

5. Clawback window

• The specific triggers: chargebacks, fraud, duplicate accounts, abusive trading.
• A defined window after which paid commission can no longer be clawed back.
• How the IB will be notified and what evidence will be shared.

Attribution, tracking and sub-IB terms

6. Attribution and tracking

• How clients are attributed: referral link, code, manual assignment.
• What happens when a client registers without the link, or opens multiple accounts.
• How long the IB has to claim a missing client and how quickly the broker responds.
• The IB’s access to reporting: which data, how often, and in what format.

7. Sub-IB terms

If the IB may recruit sub-IBs:

• whether sub-IBs sign their own agreement with the broker (recommended)
• how the master’s override is calculated and who pays it (we recommend the broker pays it on top, not out of the sub-IB’s rebate)
• what happens if a sub-IB changes master or goes direct
• the master’s responsibility for sub-IB compliance

Our guide to master IB and sub-IB structures covers the reasoning.

Marketing rules and compliance

8. Where and how the IB may market

This is the clause brokers most often get wrong, and the one regulators care about most.

• The IB may promote the broker only in countries where the broker’s licence permits it, and must not target clients elsewhere.
• The IB must hold any licence or registration required locally. Some IB activity in the UAE may require SCA authorisation (Category 5 covers promotion, arranging and introduction). Saudi Arabia requires a Mawthooq licence for paid promotional content, and the UAE introduced a finfluencer regime in 2025. Confirm current requirements with local counsel.
• No misleading claims: no “guaranteed profit”, no promised returns, no implying the IB is the broker.
• Required risk warnings in all content, including that leveraged trading carries a high risk of loss.
• Use of the broker’s brand, logos and materials, and whether the broker must approve content before publication.
• Disclosure: the IB must tell clients they’re paid by the broker for referrals.
• A ban on handling client funds or trading on clients’ behalf unless separately authorised.

9. Client ownership

• Who owns the client relationship and data during and after the partnership.
• Whether the broker may contact the IB’s clients directly, and for what purposes (service and compliance at minimum).
• Non-solicitation on both sides: the broker won’t move IB clients to other partners, and the IB won’t actively move clients away after leaving within an agreed period.

10. Data protection

• What client personal data the IB can see, and what it can’t.
• How data must be stored and when it must be deleted.
• Compliance with applicable data protection laws in the countries involved, which differ across MENA and the EU.

Ending the relationship and resolving disputes

11. Termination and tail commission

• Notice period for termination by either side.
• Grounds for immediate termination (fraud, marketing breaches, regulatory issues).
• Tail commission: whether the IB keeps earning on existing clients after termination, at what rate and for how long. Lifetime rebates should say explicitly whether “lifetime” survives termination.
• Final payout timing and any hold on the last payment.

12. Dispute process

• How to raise a dispute (in writing, to whom).
• Response times for each stage.
• Escalation before formal action, such as mediation.
• Governing law and jurisdiction. Cyprus, the UAE (onshore, DIFC or ADGM) and England are common choices. Pick one both sides can realistically use.

Quick reference

Clause	The question it answers
Commission	How much, on which instruments, under which model
Qualification	Which clients count
Payout cadence	When and how the IB is paid
Hold period	How long before commission is payable
Clawback	When paid commission can be recovered, and for how long
Attribution	Which clients belong to which IB
Sub-IB terms	Who pays the override and how hierarchy changes work
Marketing and compliance	Where and how the IB may promote
Client ownership	Who the client belongs to, during and after
Data protection	What data the IB sees and how it’s handled
Termination	How it ends and what’s paid after
Disputes	How disagreements get resolved

Questions IBs ask

Is a verbal IB agreement enough?

No. Without written terms, payouts, attribution and termination all become arguments. Ask for a signed agreement before you send clients.

Does an introducing broker need a licence?

It depends on the country and the activity. Some jurisdictions require IBs to be authorised or registered, and paid promotion has its own rules in Saudi Arabia and the UAE. Check with local counsel, and see how to become an introducing broker for the wider steps.

What is tail commission in an IB agreement?

It’s commission paid to the IB on their existing clients after the agreement ends. The agreement should state whether it applies, at what rate and for how long.

Can a broker change IB commission rates without notice?

It shouldn’t. A good agreement says rates change only by written agreement with notice. If yours doesn’t, ask for that clause.

We help brokers and IBs structure partnerships that hold up, and we work alongside your lawyers on the commercial side. See our IB and affiliate network service and business development work, or get in touch.