Master IB VS Sub-IB in Forex Business

In forex and CFD trading, Introducing Brokers have long been a driving force behind client growth. As competition between brokers intensified, many introduced a new layer to their programs, giving IBs the ability to bring in other IBs under them. This led to the rise of the Master IB and Sub-IB structure.

It’s a win-win setup: Sub-IBs earn commissions from the clients they refer, while Master IBs receive an additional override commission for building and supporting their IB network.

In this article, we’ll break down what these roles really mean, how the commissions flow, and what a successful multi-level IB partnership looks like in practice.

What is a Master IB?

A Master IB takes the IB model a step further. Instead of only referring traders, they also build and manage a network of Sub-IBs. When those Sub-IBs start bringing in clients, the Master IB earns override commissions based on their trading activity, essentially getting rewarded for growing and supporting the wider partner network.

Sub-IBs still receive their full rebates for the clients they introduce. The Master IB’s share comes directly from the broker, not at the expense of their downline. It’s a layered structure that encourages collaboration, not competition.

Many Master IBs go beyond just earning commissions, they actively help their Sub-IBs succeed. Whether it’s through localized marketing support, guidance on client acquisition, or training new partners, they play a hands-on role in helping their network grow. Some brokers even equip them with enhanced tools in the partner portal, such as detailed performance tracking, commission hierarchy views, or the ability to set custom commission splits within their network.

Operating on a broader scale, Master IBs often act as regional leaders, managing partnerships across different countries or market segments, organizing events, or even serving as a local face of the brand. For brokers looking to expand globally, Master IBs are more than partners, they’re strategic allies.

What is a Sub-IB?

A Sub-IB is simply an IB who works under the umbrella of a Master IB. Their main job is to introduce new traders to the broker and earn rebates or commissions based on those clients' trading activity. From the broker’s perspective, the Sub-IB is still an official partner, just like any direct IB.

Sub-IBs focus on client acquisition. This might include promoting the broker’s services in local communities, running educational sessions, managing social media groups, or using online marketing to attract traders. Once those traders open an account and start trading, the Sub-IB earns a share of the broker’s spread or commission.

Importantly, the Sub-IB has no responsibility for managing other IBs or overseeing a network. Their clients and the commissions from them are fully theirs. Any rebates are calculated based on their direct referrals, without sharing or cutting to higher levels. The broker usually provides them with access to the standard IB portal where they can track their referrals, commissions, and client activity.

Master IB vs Sub-IB: Key Differences

To make it clearer, here’s a side-by-side look at how Master IBs and Sub-IBs differ in their roles, income streams, and relationship with the broker.

How Does the Multi-Tier IB Mechanism Work?

In a multi-tier IB setup, the structure is designed so that brokers can build wider networks by letting IBs introduce not only traders but also other IBs. This creates a chain where commissions flow at different levels.

Here’s how it works in a typical two-tier structure:

1. Sub-IB refers traders directly to the broker.
2. Sub-IB earns full commissions or rebates on those traders.
3. Master IB, who introduced the Sub-IB, earns an override commission on the Sub-IB’s earnings.

The key is that the Sub-IB’s income isn’t reduced because of the Master IB. The broker pays the override separately as a reward for the Master IB’s role in expanding the IB network.

Some brokers go beyond two levels and support multi-tier systems, where the commission can flow through 3, 4, or even 5 levels of IBs. In such cases:

• Each IB in the chain earns a smaller piece of the overall commission.
• The closer you are to the trader, the bigger your share.
• The higher in the chain, the more override commissions you might collect from multiple layers.

This structure allows brokers and partners to scale aggressively, especially in regions where local connections and on-the-ground efforts are key to acquiring clients.

In most cases, these systems are fully automated by the broker’s IB portal, which tracks each referral’s level and calculates commissions accordingly. This removes any manual tracking headaches for IBs and ensures transparency across the chain.

Example Scenarios of Rebates and Overrides

To make the commission flow even clearer, let’s walk through a couple of everyday examples you might encounter in a multi-tier IB setup.

Scenario 1: Classic Two-Tier Setup

• Bob is a Sub-IB.
• Alice is a Master IB who brought Bob into the broker’s partner program.
• Bob refers traders who together trade 100 lots in a month.

Commission structure:

• The broker pays $10 per lot to the IB.
• Bob receives the full $10 per lot from his referred traders, which equals $1,000 for the month.
• Alice, as the Master IB, earns an override of 10% of Bob’s earnings, which is $100.

Bob keeps his full commission without any cut. Alice receives the override as a separate payout from the broker, thanks to her position as Bob’s sponsor.

Scenario 2: Multi-Tier (3-Level) Setup

• Tom is the direct IB (Level 3) who refers traders.
• Sara is Tom’s upline (Level 2).
• Mike is the Master IB (Level 1) at the top of the chain.
• Tom’s clients trade 200 lots in a month.

Commission structure per lot:

• Broker allocates $5 total IB commission per lot.
• Tom (Level 3) receives $3.00 per lot = $600 total for the month.
• Sara (Level 2) gets $1.00 per lot override = $200.
• Mike (Master IB, Level 1) earns $1.00 per lot override = $200.

The closer you are to the trader, the higher your direct rebate, but the higher your position in the chain, the more passive income you collect from the overall network activity.

Tools and Portals for Master IBs and Sub-IBs

For both Master IBs and Sub-IBs, having the right tools can make all the difference. In the forex world, a well-built IB portal is the partner’s command center. It helps them track clients, monitor trading volumes, and manage commissions, all in one place.

In multi-tier setups, these portals take on an even bigger role. They don’t just show client data. They also allow Master IBs to manage their Sub-IB networks, track performance at every level, and see where their business is growing or slowing down.

A good IB portal simplifies these complex structures into clear, easy-to-follow dashboards. This way, whether you're a Sub-IB focusing on direct clients or a Master IB managing an entire network, you have full visibility into your business.

zForex Partners Portal Features

At zForex, our partner portal is designed specifically to support multi-tier IB structures and to make life easier for both Master IBs and Sub-IBs. Here’s what it offers:

• Multi-Tier IB management up to 5 levels
  Easily manage and track up to five levels of IBs under your network, with clear visibility into each tier’s performance.
• Live Reporting and Dashboards
  Access real-time data on client trades, partner activity, and rebate generation, all updated live.
• Clean Interface and Navigation
  Navigate between different views, levels, and data sets smoothly without getting lost in complex menus.
• Track partner, trader, and even instrument-based transactional data
  Drill down into details by partner, individual trader, or even specific trading instruments to better understand your network’s activity.

Common Misconceptions and Clarifications

Even experienced partners sometimes get confused about how Master IB and Sub-IB models work. Let’s clear up some of them...

1. It’s not multi-level marketing (MLM)

Many confuse multi-tier IB programs with classic MLM or pyramid schemes. In reality, a forex IB program is volume-based, meaning rewards are always tied to real trading activity. No one gets paid just for bringing in new IBs or expanding the chain. The income comes only when clients trade.

2. Sub-IBs are independent, not employees

Some think Sub-IBs work for the Master IB. That’s not the case. Sub-IBs are direct partners of the broker, just like any other IB. The Master IB doesn’t control the Sub-IB’s business. The relationship is more like a sponsor or mentor, not an employer.

3. Sub-IB commissions are not reduced because of the Master IB

A common worry among Sub-IBs is that the presence of a Master IB above them might cut into their own rebates. However, in properly structured programs, the Sub-IB earns the full commission for their clients. The Master IB’s override is paid separately by the broker, without touching the Sub-IB’s income.

4. Master IBs don’t always manage direct clients

While many Master IBs also refer traders directly, their bigger focus is often on managing and expanding their Sub-IB networks. This doesn’t mean they stop introducing clients, but their earning power comes from both direct and indirect sources.

FAQ: Master IB & Sub-IB Structures

Can a Sub-IB switch to another Master IB?
Usually, no. Most brokers lock the Sub-IB under the Master IB who first referred them, unless both parties agree, and the broker approves a change request.

Do brokers allow Master IBs to set custom rebate rates for their Sub-IBs?
Some brokers do, especially those with flexible partner portals. This lets the Master IB adjust incentives to attract and retain Sub-IBs. However, many brokers keep rebate rates fixed at the broker level to avoid conflicts.

Does a Master IB have access to Sub-IB client lists?
No. Master IBs can see aggregated data and performance reports for their Sub-IBs, but they can’t see personal client data unless those clients were directly referred by the Master IB. 

What happens if a Sub-IB becomes inactive? Does the Master IB still earn from old clients?
In most setups, yes. As long as the clients keep trading, the Sub-IB and the Master IB continue earning their respective commissions, even if the Sub-IB stops referring to new clients.

Can a Master IB earn from clients who were originally referred by their Sub-IB but later move under a different IB?
Normally no. Once a client account is linked to an IB (or Sub-IB), the commission chain is set. If the client requests to change IB, the new IB (and their Master IB if applicable) will start earning commissions from that point forward.