The reduction of the two-fermion Bethe-Salpeter equation in the framework of light-front dynamics is studied for the Yukawa model. It yields auxiliary three-dimensional quantities for the transition matrix and the bound state. The arising effective interaction can be perturbatively expanded in powers of the coupling constant gs allowing a defined number of boson exchanges; it is divergent and needs renormalization; it also includes the instantaneous term of the Dirac propagator. One possible solution of the renormalization problem of the boson exchanges is shown to be provided by expanding the effective interaction beyond single boson exchange. The effective interaction in ladder approximation up to order g4s is discussed in detail. It is shown that the effective interaction naturally yields the “box counterterm” required to be introduced ad hoc previously. The covariant results of the Bethe-Salpeter equation can be recovered from the corresponding auxiliary three-dimensional quantities.