Every CFD Broker Runs a B-Book—Here’s What Actually Matters for IBs

The A-Book vs B-Book Obsession Is a Distraction

You’ve heard it all before:

• “We’re true STP.”

• “Our execution model is A-Book only.”

• “We don’t profit from client losses.”

Sounds nice, doesn’t it? Problem is—it’s mostly marketing.

Here’s the blunt reality: almost every CFD broker runs a B-Book.Yes, even the ones claiming they don’t. Yes, even the ‘premium’ ones.If a client is burning through their account with reckless trades, the broker will take the other side. Why wouldn’t they? It's revenue, it’s legal, and it’s standard practice.

The real question is this: does it matter for you—the IB or affiliate? And the answer is: only if you care about building a long-term commission machine.

How Brokers Really Handle Your Trades

	A-Book	B-Book	Hybrid
Trade Routed To	External Liquidity Providers	Internal Broker Desk	Depends on Risk Profile
Broker Makes Money From	Spread + Commission	Spread + Client Losses	Both, selectively
Client Wins	Broker earns commission only	Broker loses	Routed to A-Book
Client Loses	Broker earns commission only	Broker profits	Kept in B-Book
Conflict of Interest	Low	High	Medium (depends on routing logic)

A vs B Book in Simple Terms

A-Book: Broker sends trades to external liquidity providers. Makes money on spread/commission. No conflict with traders.

B-Book: Broker is the counterparty. When traders lose, the broker wins. Higher profit, higher risk, massive potential for abuse if not managed correctly.

Hybrid: This is what most brokers actually use. High-risk, fast-burning clients get B-Booked. Low-risk, low-return traders get routed out to A-Book. The switch is automated by internal risk systems.

So unless you’re running retail order execution or compliance yourself, debating A vs B is just noise.

When Book Type Does Matter for IBs

There are situations where this matters—and it’s not about ethics. It’s about revenue security.

1. You're on rev share, not CPA. If your traders do well and stay active, and the broker is pure B-Book with poor risk management, you might stop getting paid. Brokers can delay payouts, change terms, or kick you off the deal. If there’s an A-Book fallback or a clean hybrid system, your payout is protected—even when your traders win.

2. You're sending smart traders. Scalpers, EA users, or anyone with a long trade history gets noticed fast. Brokers either throttle them or route them out. If your broker has no way to manage profitable clients without pulling the plug on your commission, it’s a time bomb.

3. You care about retention. Clients hate slippage, spread games, and trade rejections. If your referrals churn in 30 days, your revenue dies. A properly structured hybrid broker can offer execution that doesn’t scare off smart traders.

When Book Type Doesn’t Matter

1. You're on CPA. If your deal is $500+ per qualified trader, it doesn’t matter if they blow up in 10 minutes. You’re paid and done. Just don’t confuse that with trust-building or long-term monetisation.

2. You’re running high-churn traffic. Pop traffic, email blasts, sketchy SEO—if that’s your model, fine. Just don’t pretend you care about trade execution. Your funnel ends before the trader ever opens MT4.

3. The broker’s “A-Book” claim is unverifiable. Ask any broker, they’ll swear they’re STP. That doesn’t mean trades aren’t hitting their internal desk labelled “Liquidity Provider 1”. If they’re not showing routing logic, risk flags, or giving you real trade reporting—you’re being B-Booked, whether you know it or not.

Truth You Won’t Hear at Broker Conferences

Most clients lose money. That’s not pessimism, that’s math.

If a broker gets a deposit from a guy who’s gambling with $250 on 1:500 leverage—they’re not routing that to Deutsche Bank. That order’s staying in-house.

But if a trader is running a proper system, managing risk, and building positions—they’ll get A-Booked fast. No broker wants exposure to skilled traders eating their margin desk alive.

So yes, B-Book is normal. The question is how the broker manages it, and how it affects you as an IB.

What You Should Be Asking Instead

Forget the label. Ask better questions:

• How is rev share calculated? Is it fixed or dynamic based on PnL?

• Do I get paid if my client wins?

• What are the terms around rev share duration, activity, or account thresholds?

• Can I see trade data, execution reporting, and retention metrics?

• What happens if I bring in a high-volume trader? Am I cut out or rewarded?

• Who’s managing the B-Book risk? What systems are in place?

These are the questions that protect your revenue. Not whether they slap “STP” on a landing page.

The IB Playbook That Actually Works

Here’s how serious IBs and affiliates approach this:

1. Match broker model to your traffic type. If your traffic is high-churn, go CPA or short-tail rev share.If you're building a long funnel with LTV, you need a hybrid broker with fair routing and clean risk books.

2. Don’t sell fairy tales. Traders are more educated than ever. Don’t pitch “no conflict STP execution” if the broker is running a Dealing Desk. Instead, pitch execution quality, tools, support, and spreads. Be honest. It builds stickiness.

3. Track retention and revenue per lead. If you’re sending 50 signups and only earning off 3, something’s wrong. Either the broker is burning accounts internally or your funnel is misaligned. Dig into the numbers, not the branding.

Bottom Line

Every broker runs a B-Book. Some hide it. Some abuse it. Some use it to manage risk smartly.

If you're serious about growing your forex income, stop obsessing over what they call their model, and start looking at how you get paid, how your clients are treated, and whether your revenue stream is protected for the long haul.

Because when it comes down to it, you're not in the "educating traders" business.You're in the commission business.

Pick brokers who help you build that, not just the ones who say the right things.

Want help reviewing your broker lineup or optimising your IB setup for long-term earnings?Get in touch. No fluff, no upsell—just a straight audit and strategy.