Do you want to know what forex affiliates are and how to choose the best forex broker and refer clients to? Or do you need a guide, that will teach you how to become a successful forex affiliate. You are in the right place. First, let’s understand what the term “affiliates” mean and how it applies to forex trading in general.
Here is a list of some of the best forex affiliates out there
|Broker||Bonus||Min Deposit||Payout||Review||Open Account|
|Commission up to 15%||$50||Up to $15 per lot||Review||Visit Broker|
|Revenue share up to 25%||$200||CPA (UP TO) $400 USD||Review||Visit Broker|
What is a forex affiliate?
Forex affiliate is a kind of marketing program in which a person refers other persons to a business in exchange for some sort of reward. Most times, the reward or incentive is usually financial based. Usually the person doing the referral (forex affiliate) is known as a type of internet introducing broker (IB) typically without an office or organizational structure. This introducing broker usually refers prospective clients (forex trader) to the forex broker he or she is affiliated with via different media. Some of these media may include various recommendations, banners, links or any other type of marketing collateral. A forex affiliate directs traffic he or she generates from his or her marketing collateral to the forex broker.
The more customers referred to the forex broker, the more pay the forex affiliate gets. So a potential trader that clicks on the link provided by the forex affiliate is earmarked by the broker as a referal client from the affiliate and this is how affiliates gets paid. It is therefore of utmost importance to the forex affiliate that traffic generated is from potential clients and people that are interested in using the link he or she provides. A website or blog or various forms of media that have a wide reach is the best method to go about this.
Becoming a forex affiliate is simple as these are just private individuals with large traffic as opposed to standard introducing brokers which usually have a sales staff and organizational structure. Being a forex affiliate can help to diversify streams of income of an individual with minimal effort and minimal investment. Investment is usually in the form of advertising and promotion so as to generate traffic.
How does a forex affiliate program pay?
There are different methods of compensation methods and this varies from broker to broker. They are rebates, cost per acquisition (CPA), cost per lead ( CPL), revenue sharing and hybrid model which is a combination of two compensation packages. Another type is known as 2nd tier compensation. The ones that have been listed above are known as 1st tier. basically, this 2nd tier means that a forex affiliate is entitled to some compensation from referring other forex affiliates to the forex affiliation program. This is however rare as brokers do not like to pay twice.
Rebates is a compensation method which allows affiliates to be entitled to compensation for the volume their clients make. This is usually how non internet introducing brokers are paid. A affiliate is entitled to 0.5-2 pips for every standard lot the client makes. This is the industry standard and the pips vary from broker to broker (market maker or ECN, competitive spreads or not) and currency pairs (majors or minors – minors tend to have wider spreads as they are less traded).
Cost per acquisition (CPA) is a type of compensation in which the affiliate gets paid when the referred client makes a deposit or signs up for a live account. Compensation is usually between $150-$250 dollars but can rise considerably if the client makes a sizeable deposit.
Cost per lead (CPL) is a type of compensation method in which the affiliate gets paid when the referred client provides information on the brokers landing page. Some brokers offer this for when a trader signs up for a demo account as well.
Revenue share is a commission based structure where the affiliate gets paid a certain percentage of the profit made from the payment of the referred client. Therefore, in this situation, the amount of money the forex affiliate gets paid depends on how active the referred clients are. If your leads trade a lot, chancesare you will be making a lot of money under this compensation method. Percentages offered can be as high as 65% or as low as 5% depending on the broker. Some brokers offer a lifetime option where the forex affiliate keeps earning a commission as long as the client keeps trading while some brokers have an early termination option and they last for only a period of time, so it is very important to read the fine print as an affiliate and fully understand the plan.
How to choose a forex broker and become an Affiliate
It’s good to know a few things about your broker before applying as an affiliate. The forex system is far from perfection, and most brokers are known for playing tricks to get more from the affiliate and pay less. Most forex brokers could delay before reporting opened accounts and they could stylishly device means not to pay the affiliate his hard-earned commission. This might sound stupid, but it is the sad reality.
Ensure you conduct enough research about a particular forex broker and don’t trust reviews because they might be misleading. They could be paid reviews or written by the broker himself. As a forex affiliate, the key to your success in forex is yours depends mainly on your broker.
When going through a very long forex affiliate program list, one can get confused as to which one to pick when seeing name after name and broker after broker. It is therefore advisable to keep it simple and cast aside affiliate programs that simply are not worth the time and effort. The few affiliate programs that make the cut should be properly researched. By looking at the numbers and percentages that stand behind an affiliate operation, along with the years active, reputation of and regulation held you will be able to get a real feel for its quality and its all-round reputation. When it comes to forex affiliate programs, the devil is often in the details and the fine print, so do not discount history under any circumstances.
If a forex affiliate does not give you the chance to track your performance and progress on a grand scale, such a program is not worth engaging in. The best programs offer you a dashboard which allows you to know how many leads you are bringing in to the broker and how active those leads are. With this information, you can know what strategies to use, what is working and what is not. You can make adjustments in real time and this can be very helpful as it can improve your overall bottom-line.
Dedicated Affiliate manager
To guarantee a successful partnership, brokers need to provide full-time customer service support for their affiliates. Most times, it could be best to assign a dedicated affiliate manager to each affiliate. Serious forex brokers take the needs of their affiliates seriously. They assist their affiliates with several marketing materials such as tools, proposal samples, banner, and other marketing ideas while providing a dedicated affiliate manager for correcting any issues that might arise and answer any questions bothering the affiliate. If you are lucky to find any broker that takes your needs as an affiliate seriously, ensure you consider such a broker as your main choice whenever you plan to become a forex affiliate.
Honesty and Transparency
Hang around the forex community long enough and you will realize that the word ‘affiliate’ can sometimes have a negative connotation. This reputation is not lightly earned as there are a bunch of half-hearted programs out there that are dubious in their dealings. The key to finding the best forex affiliate program is deep-rooted in honesty and transparency. Any affiliate program that you choose to throw your weight behind needs to showcase 100 percent transparency in its operation, which includes seeing commissions trade by trade, along with the ability to export reports related to performance.