Payment plans
A payment plan is part of IB type configuration that the broker sets when launching a partnership program.
Key points
Payment plans can be configured for a single symbol or symbol group. For a step-by-step tutorial, refer to How to set up a payment plan for symbols.
The calculated reward amounts can be additionally multiplied by level, tier, personal or Master ratio, if applicable.
If a partner’s wallet currency differs from the reward currency, then the reward amount is converted into the wallet currency. The conversion occurs at the current exchange rate at the time of calculation.
Trading volume used for reward calculations can be changed by the platform group modifier. For example, the lot size for a group is set to 0.4 (Introducing brokers > Platforms > Groups). If the trade volume is 100 lots, this value will be multiplied by the group lot size:
100 lots × 0.4 = 40 lots.
The available payment plans are described below. Pay attention to a list of trading platforms to which each plan is applicable.
Important
All values given in this section are for demonstration purposes only and do not constitute a recommendation.
Commission
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The broker pays the partners a fixed percentage of commissions received for trades executed by their clients:
Reward amount = Commission × Percentage
where:
Commission is a fee amount that a trader paid to the broker for executing a trade;
Percentage is a commission percentage value specified by the broker in the IB type settings. This is a percentage of the total commission received by the broker.
Consider an example of Jack, whose client brought 70 USD in commissions to the broker, while the set commission percentage is 10%.
In this case, the amount rewarded to Jack is calculated as follows: 70 USD × 10% = 7 USD.
Lot
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The broker pays the partners a fixed amount for each lot traded by their clients:
Reward amount = Trading volume, in lots × Amount per lot
where:
Trading volume is an amount of lots that was sold or bought by a trader as a result of a trade;
Amount per lot is a fixed reward amount to be paid per lot, specified by the broker along with the reward currency. The reward currency doesn’t depend on the traded symbol. That is, the broker can specify USD as the reward currency for the ETH/EUR symbol.
Consider an example of Jill, whose client has traded 10 lots while the reward amount per lot is 2 USD.
In this case, the amount rewarded to Jill is calculated as follows: 10 lots × 2 USD = 20 USD.
Important
Keep in mind that you must monitor profitability using this scheme as the reward amounts may exceed the commissions charged.
Max amount
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The broker pays the partners a fixed amount for each lot traded by their clients, while also having the opportunity to specify both the maximum reward amount and the reward amount for each configured level.
With the Lot payment plan, a broker specifies the reward amount per lot for Level 1. The rewards for subsequent levels (if configured) are calculated as a percentage of Level 1 reward.
With the Max amount payment plan, a broker limits the total amount of rewards paid to partners regardless of the number of levels, and then specifies the exact amount which a partner receives at each level. The following example illustrates how the reward amount can be distributed depending on the number of levels.
1 level |
2 levels |
3 levels |
4 levels |
5 levels |
6 levels |
|
|---|---|---|---|---|---|---|
Level 1 |
10 USD |
8 USD |
5 USD |
5 USD |
4 USD |
3 USD |
Level 2 |
2 USD |
3 USD |
3 USD |
2 USD |
2 USD |
|
Level 3 |
2 USD |
1 USD |
2 USD |
2 USD |
||
Level 4 |
1 USD |
1 USD |
1 USD |
|||
Level 5 |
1 USD |
1 USD |
||||
Level 6 |
1 USD |
Based on the table above, consider an example of Jack, whose direct client has traded 10 lots.
In this case, the reward is paid only to Level 1, and the amount rewarded to Jack is calculated as follows: 10 lots × 10 USD = 100 USD.
Next, consider an example of Jill who participates in Jack’s sub-IB program. If Jill’s direct client has traded 10 lots, then the reward amount is distributed between two levels:
at Level 1, the amount rewarded to Jill is calculated as follows:
10 lots × 8 USD = 80 USDat Level 2, the amount rewarded to Jack is calculated as follows:
10 lots × 2 USD = 20 USD
In this case, the total reward amount is 100 USD, that’s 10 USD per each traded lot.
Markup
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The broker pays the partners a part of the markup in points:
Reward amount = Trading volume, in lots × Contract size × Tick size × Markup / 2
where:
Trading volume is an amount of lots that was sold or bought by a trader as a result of a trade;
Contract size is a standardized quantity of asset per lot, set on a trading platform;
Tick size is the minimum step of price change for a symbol, set on a trading platform;
Markup is a markup value to be paid per lot, specified by the broker in the IB type settings.
Consider that the Markup value for BTC/USD to 1000 points, the Contract size is set to 1, and the Tick size is set to 0.001.
After Jack’s client has traded 2 lots of BTC, the amount rewarded to Jack is calculated as follows: 2 lots × 1 × 0.001 × 1000/2 = 1 USD.
Markup %
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The broker pays the partners a percentage of the markup. The calculation formula depends on the trade side:
For sell trades:
Reward amount = Trade price × 100 / (100 – Markup, % / 2) × Markup, % / 2 / 100 × Trading volume × Contract size × Percentage / 100
For buy trades:
Reward amount = Trade price × 100 / (100 + Markup, % / 2) × Markup, % / 2 / 100 × Trading volume × Contract size × Percentage / 100
where:
Trade price is an execution price at which the asset was sold or bought by a trader as a result of a trade;
Markup, % is a multiplier applied to market prices, specified by the broker in the IB type settings;
Trading volume is an amount of lots that was sold or bought by a trader as a result of a trade;
Contract size is a standardized quantity of asset per lot, set on a trading platform;
Percentage is a percentage of the Markup, % value to be paid per lot, specified by the broker in the IB type settings.
For example, the Markup, % value is set to 10 and the Percentage is set to 30. A client of Jill bought 5 lots at BTC/USD for 45,000.567 USD each.
In this case, the amount rewarded to Jill is calculated as follows: 45,000.567 × 100 / (100 + 10 / 2) × 10 / 2 / 100 × 5 × 1 × 30 / 100 = 3,214.33 USD.