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.