You receive the commission in the amount of a certain percentage of the spread of clients’ orders. It depends on your current IB Grade.
It is calculated the following way:
Spread * Commission level multiplier = Commission per trade, where
- Spread is the difference between a trading instrument Buy and Sell prices at the moment of order opening and closing;
- The commission level multiplier depends on your average commission for the last three months;
- The Commission per trade is the amount of commission you receive.
For example, if you are a Grade 1 IB, the commission percentage is 30 %. A client has traded 5 lots of GBPUSD, with a spread of 13.6, then the calculations are as follows:
Commission = 5 * 13.6 * 30% = $20.4
You can use this formula to calculate the approximate amount of the commission for the particular instrument based on the average spread.
You can also use the widget in the Partner Area: