Understanding IB Commission Structures: Standard MT5 Account vs MT5 PAMM Investor Accounts

Welcome to our guide on Understanding IB Commission Structures. If you're an Introducing Broker (IB) with Tradiso, it's essential to understand how commissions vary between different account types. This guide will help you differentiate between the commission setups for MT5 Standard Accounts and MT5 PAMM Investor Accounts. Whether you're managing referrals to PAMM accounts or MT5 Standard accounts, this breakdown will clarify how commissions are calculated and what steps you need to take to maximize your earnings. Let’s dive into the specifics.

1. IB Commissions for Standard MT5 Accounts

Standard MT5 Accounts:
- Structure: These are individual trading accounts where traders execute their own trades.
- Commission Generation: Each trade executed in a Standard MT5 account generates trading commissions.
- IB Rebates: Affiliates receive 20% of the trading commissions from these accounts. For example, if a standard lot incurs a $10 commission, the IB rebate would be $2 per lot.

Key Points for Standard MT5 Accounts:

Rebates: Directly tied to the trading activity of the accounts you refer. More trading activity means more commissions and rebates for the IB.
No Special Setup Needed: Standard IB commission arrangements apply without additional steps.

2. IB Commissions for PAMM Accounts

PAMM Accounts:
- Structure: In a PAMM account, trades are executed by the Master PAMM trader, while Investors provide funds but do not execute trades themselves.
- Commission Generation: Since trades are executed through the Master PAMM account, Investor accounts do not generate trading commissions.
- IB Rebates: Consequently, IB affiliates do not receive trading commissions or rebates from PAMM Investor accounts. Any compensation or rebates related to PAMM accounts require specific arrangements.
IB Rewards for PAMM Accounts:
- Earning Potential: As an IB Partner in Tradiso's PAMM Clientele program, you will receive 30% of the Master PAMM account owner's performance fee portion.

Here is an example for further clarity:

Master PAMM Account's Performance Fees: 50/50 (Weekly)

This means that at the end of each week, the client subscribed to this Master PAMM account will retain 50% of the profits, while the remaining 50% will be allocated to the Master PAMM account owner.

For PAMM IB Partners, 30% of the master PAMM account owner's performance fee portion (in this case, 50% of the weekly performance fee for this PAMM account) is awarded to you as an IB Partner in recognition of your referral efforts.

Setup Needed:

To qualify for rebates or commissions from PAMM referrals, affiliates must contact Tradiso’s support team at support@tradiso.com. Please include:
- Your Tradiso registration email
- A list of your referrals who have invested in PAMM accounts.

Key Takeaways

Standard MT5 Accounts: Direct trading commissions generate rebates; IBs earn 20% of the trading commissions.
PAMM Accounts: No trading commissions are generated by Investor accounts; rebates require specific arrangements.

We hope this comprehensive explanation helps clarify the differences in IB commission structures for PAMM Accounts and Standard MT5 Accounts. If you have any further questions or need additional assistance, don’t hesitate to reach out at support@tradiso.com.