Managing sub-IBs quiz · TradeBridge IB

1.What is a master IB?

A client who trades very large volumesAn employee of the broker who approves accountsA financial regulator that licenses introducersAn IB who has sub-IBs registered under them and may earn an override on their clients' trading

2.In the lesson's illustrative example, the broker pays 8 USD per standard lot, the sub-IB receives 6 USD per lot and the sub-IB's clients trade 50 lots. What is the master IB's override?

400 USD100 USD300 USD50 USD

3.Using the same illustrative structure, what happens in a month when the sub-IB's clients do not trade at all?

The master IB still earns a 100 USD overrideThe sub-IB receives a minimum payment of 300 USDNeither the master IB nor the sub-IB earns anything from those clientsThe broker pays a flat monthly fee instead

4.Which of these is the clearest sign of a pyramid scheme?

Charging new sub-IBs a joining fee and paying recruiters out of those feesSub-IBs earning commission from their own clients' genuine tradingSigning a written agreement with each sub-IBTraining sub-IBs on compliance before they promote anything

5.Your scorecard requires at least 20 out of 25 and no criterion below 3. A candidate scores 5, 4, 4, 2 and 5, with the 2 for integrity. What should you decide?

Do not accept them, because integrity is below the minimum scoreAccept them, because the total is 20Accept them, because their audience is largeDo not accept them, because the total is only 18

6.What should happen before a newly recruited sub-IB publishes promotional content?

Nothing; they can start posting as soon as they sign upThey should grow their follower count firstThey should complete compliance training, with their first few posts reviewed before going liveThey should copy the master IB's most successful posts

7.You have 12 sub-IBs, each publishing about 5 posts a week, and you review 1 in every 5 posts. How many posts do you review in your weekly sample?

5126020

8.You discover that a sub-IB has posted edited profit screenshots and has been collecting deposits from clients. What is the appropriate response?

Have an informal chat and take no further actionIgnore it, because they are not your clientsReduce their commission split slightlyRemove them from the network under your agreement, inform the broker and keep records