ICA pays the IB a commission as part of the ICA Referral Program. The compensation is correlated with the performance and management fee charged by ICA. The referral compensation is to be billed to ICA on a monthly basis.
ICA pays the IB up to 25% of the monthly Performance Fee generated.
ICA charges clients a Performance Fee of 25%. Performance Fee or Incentive Fee is a percentage of total monthly profit goes to account manager. The 25% performance fee is taken on a high-watermark basis.
ICA pays the IB up to 50% of the Management Fee generated.
ICA will assess the investor’s account a monthly Management Fee equal to 0.1667% (2% Yearly fee) of the Net Assets in the Client's account at the end of each month. The management fee is charged to cover administrative and management procedures.
There may be a Referring Party relationship between the IB and the partner FCM.
The FCM may pay the IB a commission based on trading volume and this is neither deducted off clients’ accounts nor generated from the spread.
The FCM(s) is compensated by its brokerage services through the bid-ask spread, or through commission.
It is one-time cost, reflected at the start of every new trading position.
An example as an interpretation goes like this:
For a $100K introduced account. Account Manager will execute around 12 trades per month, depending on the market conditions. Each trade would have x4 leverage.
Most FCMs are giving approx. $10 per each $100,000 volume traded.
That makes the total trading volume for the month $100,000 x 12 x 4 = $4,800,000
Your Rebate for the month would be: $4,800,000 x $10 /100,000 = $480.
D.Indirect Client Fee
ICA pays the IB up to 5% of the Performance Fee for your indirect clients.
We have improved our ICA Referral Program so that IBs will start making money up to the second level of their referrals. An example as an interpretation goes like this:
If client A brings client B, A gets 25% from our fees on B. If B brings client C, A gets 5% and B gets 25% from our fees on client C. This way, with the same effort, Introducing Brokers will make more money.