How Brokers Screw Their IBs: 5 Dirty Tactics You Need to Spot Early
- forex368
- 10 hours ago
- 4 min read
If you think trading is risky, wait until you see what some brokers do to their own IBs.
I've lived it. I've watched so-called “top brokers” crumble under their own greed. I've seen good affiliates wiped out because they trusted brands that smiled in public and stabbed them in private.
These aren’t warnings. They’re lessons written in lost commissions.
Here are five brutal tactics brokers use to steal your commissions — and how to spot them before they gut your business.
1. Real-Time Price Manipulation (Not Just "Slippage")
Forget normal slippage. Some brokers rig the market feed right in front of you — and it’s been happening for years.
But here’s the dirty secret: When they manipulate prices against clients, they’re also screwing you as an IB — because your commissions depend on client trading volume, client profitability, and retention.When clients get wiped out by rigged platforms, you lose future commissions. You lose the client lifetime value you built.
Personal Experience: Nearly a decade ago, on 24Option’s platform, I watched a client lose over $500,000 in a single session.Not because of market volatility — because of engineered price manipulation:
Artificial price spikes that didn’t match any real market data.
Widened spreads at critical moments.
Delayed fills that guaranteed stop-losses were hit — way beyond expected execution levels.
When I confronted them, the response was simple:"Handle it quietly."
This isn’t ancient history — it’s the DNA of how bad brokers operate. Some just hide it better today.
The Bottom Line: When a broker cheats your clients, they’re cheating you.They steal today’s trading — and tomorrow’s commissions.
How to Spot It:
Test order execution during major economic news — not during quiet hours.
Watch for consistent negative slippage with no corresponding positives.
Verify your fills against independent ECN or institutional feeds — expose the gap.
2. Silent Theft: Retroactive Commission Clawbacks
Most modern brokers don't allow negative balances anymore. The new scam is retroactive "adjustments" — clawing back commissions weeks or months after you've earned them.
Case Study: At 24Option (before regulatory heat crushed them), IBs were told they'd violated vague "client behaviour" rules — after commission periods closed. No warnings. No real explanations. Thousands wiped from earnings on a whim.
How to Spot It:
Monitor every client account tied to your ID monthly.
Watch for "adjustments" or "corrections" on your payout reports.
If the broker refuses to disclose detailed trade histories, assume they’re planning a clawback.
3. Cashflow Strangulation: Delayed or Withheld Payouts
Cashflow is your oxygen. When brokers delay payouts, they’re not just stalling — they're strategically strangling your business.
Personal Experience: At 24Option, regular payout cycles stretched from two weeks to six or eight, without notice.Excuses ranged from "compliance" to "banking reviews." Meanwhile, they sat on your commissions, using the float for themselves.
How to Spot It:
Demand a written payout schedule before you send your first lead.
Track every single payment to the day — and escalate the second one is late.
Late once = warning. Late twice = you’re in a hostage situation.
4. Fake Compliance Reviews (The Broker’s Favourite Stalling Tactic)
When a broker doesn’t want to pay you, they won’t say it outright.They hit you with the classic line:"Your account has been flagged for compliance review."
Sounds official. Most of the time, it’s just a delay tactic — nothing more.
Here’s how it really works:
The broker triggers a "compliance review" internally — no external auditors, no investigation, no regulator involved.
You receive a vague email saying your commissions are "under review" for alleged policy breaches.
No evidence is provided. No timelines are promised. No formal case is opened.
The real goal? Freeze your commissions, stall withdrawals, and keep your money inside their cash flow for as long as possible.
Behind the scenes, some brokers even pay cheap compliance contractors — freelancers or minor firms — to draft template review notices that sound legal but mean nothing.
It’s not about real compliance.It’s about breaking your momentum — and hoping you give up or settle for less.
How to Spot It:
Demand a formal compliance case number, investigator name, and the legal basis for the review.
Ask which specific clause in your agreement is being reviewed — and request evidence.
Set hard deadlines: 5 business days maximum to resolve or escalate.
If they can't provide structured evidence, it’s not compliance — it’s theft in slow motion.
5. The Hidden Kill Switch: Withhold, Delay, or Forfeit Clauses
Today’s contracts don’t openly say, "We can cancel your commissions whenever we want."They’re smarter — and deadlier.
Real Contract Examples: At major players like Exness and XM, the IB terms are written to give the broker wide powers:
Payouts can be withheld indefinitely during “client disputes” or “compliance investigations.”
Commissions can be cancelled retroactively if the broker flags any “fraud traffic,” bonus abuse, or “suspicious trading behaviours.”
The commission structure can be amended at the broker’s sole discretion, with minimal notice.
They reserve the right to terminate your partnership instantly on suspicion — keeping all unpaid commissions.
You might not even see the termination coming — it can happen based on "reasonable suspicion," not proof.
How to Spot It:
Dig deep for clauses mentioning "withhold," "delay," "fraud," "churning," or "compliance review."
Check for phrases like "sole discretion" or "without liability" — massive red flags.
Always assume that if the broker holds the power, they’ll use it when it suits their bottom line.
Final Word: Trust... but Verify
Being an IB isn’t just about sending traffic and closing deals. It’s about defending your income from the very people who promised to "partner" with you.
✅ Audit everything.
✅ Demand documentation.
✅ Walk away early if the rot smells strong.
Your revenue, your credibility, and your career depend on it.
