Hybrid IB plan
Definition
Hybrid IB plan: An IB plan that pays part of the CPA upfront for each qualifying client, then a rebate on their trading set lower than the pure rebate plan's rate.
What it means
A hybrid combines the two basic IB plans, at reduced rates on both halves. The IB receives a portion of the CPA once a client qualifies, then a rebate per lot on that client's trading — typically a rung below the rate the pure rebate plan would pay. Both sets of rules apply: CPA qualification for the upfront part, and rebate rules such as holding-time minimums for the rest.
Because each half is discounted, a hybrid pays most in the middle: on clients who stay long enough to trade a meaningful volume, but not so long that the full rebate would have been worth more.
Example
With illustrative rates — a $300 CPA, a $7 rebate, and a hybrid of $120 upfront plus $5 a lot — the hybrid overtakes the CPA once a qualified client has traded 36 lots in their lifetime, and the rebate overtakes the hybrid from 60 lots. Between those points, the hybrid pays most.
Why it matters to an IB
A hybrid suits an IB who expects clients to stay a moderate time, or who wants some income now while a rebate book builds. The choice rests on an estimate of lifetime lots per client, so measure retention before choosing. See how IB commission plans compare.