The short answer
Many trading “mentors”, signal groups and YouTube channels are paid by brokers for every person they send. The pay is often:
- a rebate per lot you trade
- a fixed amount per new client who deposits
- a share of what the broker earns from you
This is legal in many places and is not always bad. But per-lot pay rewards trading more, not trading well. That can pull a mentor’s advice in a direction that costs you.
Ask one simple question: “Are you paid if I open an account or trade with this broker? How?” An honest person answers plainly.
XAUUSD Global has no broker affiliates. Our How we make money page says: “No affiliate links. We do not earn a commission when you open a broker or prop-firm account, so we have no reason to steer you towards one.”
Who’s who
- Introducing broker (IB): a person or firm that introduces clients to a broker and is paid for it. Some are licensed firms; some are individuals. Some also offer support, local language help or education.
- Affiliate: usually someone with a referral link (on a website, video or social media) who is paid when people sign up or deposit.
- “Partner”, “ambassador”, “regional rep”: different words, often the same idea.
The labels don’t matter much. What matters is how they are paid, and whether they tell you.
How the money works (example numbers)
These numbers are examples, not any real broker’s rates. Maths checked by script.
Say a mentor is paid $5 for every lot their referred clients trade.
- 50 people join through the link.
- Each trades 10 lots a month.
- That is 50 × 10 = 500 lots.
- The mentor earns 500 × $5 = $2,500 a month.
Notice what is missing from that sum: whether the 50 people won or lost. The mentor earns the same either way. In fact, people who overtrade, or lose and re-deposit, may generate more lots.
That doesn’t make every IB dishonest. It means the incentive is lots, not your results, so you need to watch for advice that just happens to create more lots.
A story you may recognise (fictional)
Aman, 19, joins a free Telegram group after watching a reel about gold. The group admin, “Coach V”, posts charts every morning and is friendly. On day two, Coach V says: “To get my VIP signals, open an account with this broker using my link. Others are bad.”
The signals come fast: five or six gold trades a day, often 0.50 lot on a $500 account, “because gold moves big”. When Aman loses half his deposit, Coach V says: “Top up and we’ll recover it this week.”
Look at it from the money side. Every signal Aman copies is lots traded. Every top-up is a new deposit. If Coach V is paid per lot, he earns on each trade, whether Aman wins or loses. Coach V may even believe in his signals. But the incentive points one way: more trades, bigger trades, more deposits.
What Aman could have asked on day two: “Are you paid for my account? Can I learn from you with a broker of my choice?” The answer would have told him a lot.
Signs of a conflict of interest
Advice that creates more lots:
- “Trade every session”, or daily targets that need many trades
- Bigger lot sizes than your risk plan allows
- Scalping small moves all day, with no clear edge
- Adding to losing trades (“average down”)
- Chasing a deposit bonus with a lot-volume target. See deposit bonus traps.
- “Re-deposit and try again” after a blown account
Behaviour around the broker:
- Only one broker is ever acceptable, and questions about it are dodged
- You must sign up only through their link to stay in the group or get signals
- They never mention the regulator, the company name or the costs
- They push an offshore company when you live somewhere with stronger protection. See regulation tiers explained.
- They ask for your login to “help”. Never share it. See copy trading and account management.
Questions to ask any mentor
- “Are you paid if I open an account with this broker, or for the lots I trade?”
- “How much, roughly, and is it per lot, per sign-up or a share?”
- “Which company and regulator will my account be with?”
- “Can I follow your teaching with a different broker?”
- “Would you still recommend it if you weren’t paid?”
- “Can I see your full track record, including losses?”
An honest IB will answer. Many will say yes, they earn a rebate, and explain what they give in return. That honesty is a good sign. Dodging, anger or “just trust me” is a bad sign.
When a referral can be fine
To be fair:
- Some IBs disclose clearly and give real help: setting up, local support, education.
- Some pass part of the rebate back to you, lowering your costs.
- A recommendation can be genuine and paid at the same time.
The test is not “are they paid?” but “does the pay change the advice?” and “are they honest about it?” Then check the broker yourself, with the same care as any other, using the 15-point broker checklist and the licence check.
What to do if you feel pushed
- Slow down. Pressure is a warning sign by itself.
- Check the broker yourself on the regulator’s register, ignoring the mentor’s link.
- Keep your risk plan. Lot size comes from your stop-loss and account, not from a group target. Use the position size calculator.
- Read the warning signs in trading course and mentor scams and gold signal group red flags.
- Consider learning in a group where nobody earns from your trades. See a community or one paid mentor?
How this site is paid
We think every trading site should say this plainly. Ours, quoted from How we make money:
- “Our only planned revenue is the community membership, which is free during early access. No affiliate links, no ads, no paid signals.”
- “No affiliate links. We do not earn a commission when you open a broker or prop-firm account, so we have no reason to steer you towards one.”
That is also why we never name, rank or recommend brokers.
Sources
- XAUUSD Global: How we make money (last updated 24 October 2026; quoted 5 November 2026)
- The per-lot rebate figures on this page are example numbers, not any broker’s real rates. The maths was checked by a script.
- The ways IBs and affiliates are paid (per lot, per client, revenue share) are described as common industry practice; each agreement is different.
Educational content only, not financial or legal advice. We never name, rank or recommend brokers.
Frequently asked questions
What is an introducing broker?
An introducing broker (IB) is a person or company that sends new clients to a broker and is paid for it. Pay is often a rebate per lot the client trades, a fixed amount per new client, or a share of the broker’s revenue from that client. Some introducing brokers are themselves licensed; many affiliates are not.
Why does my trading mentor want me to use one broker?
It may be a genuine preference, but often the mentor is paid as an introducing broker or affiliate when you open an account through their link, and sometimes for every lot you trade. Ask them directly whether they are paid, and how.
Is it illegal to be a broker affiliate?
Not in itself. Referral deals are common in many industries. What matters is whether the person is honest about it, whether they hold any licence the local rules require, and whether the pay pushes them to give you worse advice.
Does XAUUSD Global earn from brokers?
No. Our How we make money page says: no affiliate links, and we do not earn a commission when you open a broker or prop-firm account, so we have no reason to steer you towards one.
How can I tell if a mentor's advice is biased?
Watch for advice that would mean more lots: more trades, bigger sizes, scalping every move, adding to losers, or chasing a deposit bonus. Also watch for refusing to discuss other brokers, or insisting you sign up only through their link.
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