Rebate sharing enables IBs to allocate a percentage of the rebates they earn from client trades back to those clients. This approach encourages client loyalty and can lead to higher trading volumes, benefitting both the IB and the client. IBs can create customized rebate sharing programs through the portal, assign them to specific clients, and manage the rebate distribution process.
How to Create a Rebate Sharing Program
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Access the Rebate Sharing Section
Navigate to the Rebate Sharing section within the Marketing Tools in the IB portal. This is where you can create and manage rebate sharing programs. - Enter Program Details
Provide a name for the rebate sharing program. Set the Start Date and, if needed, an End Date. If no end date is specified, the program will remain permanent. These details define the timeline and scope of the rebate sharing offer. -
Assign Program to Clients
Select the clients you want to include in this rebate sharing program. Multiple clients can be assigned to the same program, allowing you to scale your efforts efficiently. -
Define Rebate Sharing Percentages
View the list of available securities, and for each security, specify the percentage of rebates you want to share with your clients. This flexibility allows you to adjust rebate sharing based on the type of trade or security involved, aligning the rebate offer with your business objectives.
Rebate Distribution and Management
After the initial setup, IBs can:
- Edit or End Programs: If necessary, you can edit or end a rebate sharing program at any time. You can also set an optional end date during the creation phase, which can be edited later.
- Approval Process: Rebates undergo an approval process, where IBs can either approve or reject the settlement. Approved rebates are credited to the client’s account, while rejected rebates return to the IB’s wallet.
- Tracking and Reports: The portal offers detailed reporting on rebate performance, showing the rebates shared and the resulting trading activity. This allows IBs to assess the effectiveness of their rebate-sharing efforts and make adjustments as needed.