Best Forex Affiliate Program - What Options Are a Must | Apexum

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Best Forex Affiliate Program – What Options Are a Must

June 20, 2019

A Forex affiliate program comes in many shapes and forms. While brokerage houses “steal” models from one another, there are still some differences affiliates need to know about.

Forex affiliate market is a straightforward process, tailor-made for each broker’s needs, possibilities and budgets. The budget is the first thing that makes the difference between one affiliate program and another.

Typically, the process for an affiliate marketing for a Forex broker starts with the affiliate posting an ad on their website. Generally, everything is made online. The more popular the website, the more visible the ad is, which is beneficial to the affiliate promotion.

Next, the client clicks the ad and is redirected to the broker’s website. Through a tracking link, the broker knows where the client comes from.

Finally, the client opens a live account, starts trading, and the affiliate gets paid. It is as simple as that.

This process, known as introducing broker appeals to anyone able to generate relevant web traffic and bring clients for the broker.

Different models of affiliate programs exist. In Forex trading, one of the things to consider before becoming affiliate is the CPA. The acronyms stand for Cost per Acquisition and the Forex affiliate gets paid a CPA commission for every client that opens a trading account and starts trading.

The amount differs from one Forex affiliate program to another, with brokerage houses competing for the best introducing agents by offering a higher CPA. In general, look for a few hundreds of dollars as a proper compensation for a CPA, but in some cases (again, depending on the budget) it can go much higher.

The CPA depends a lot on the amount deposited in the trading account too. If the client deposits a large sum, the broker will compensate the affiliate adequately.

Another possibility to gain from an affiliate program is to apply for a CPL or Cost per Lead. In this case, the broker pays from the moment that it receives the lead: telephone number, email address, or even physical address. Also, opening a demo account fits in this category too.

Revenue Sharing (RS) is a controversial type of commission. It all comes down to the way the broker makes its money. Under such an agreement, the brokerage house agrees to share parts of the revenue with the affiliate.

Typically, the broker earns from the spreads offered (the difference between the bid and ask quotes of a currency pair), but not only. Some brokers, especially MM (Market Makers), trade against their clients’ positions, meaning they’ll make money when the client marks a loss. Hence, the affiliate will earn as well when the trader takes a hit. The reason why RS is controversial comes from the ethical side of the story. In the end, it is a business model with risks on all sides, both the broker’s and the traders.

Other options exist as well, but these are the most popular types of commissions. The best Forex affiliate program is a combination of the types of commissions mentioned here, thus becoming a hybrid option. Sub-affiliate programs exist too, and they generate revenues by introducing second-tier clients. 

In the end, the proper program depends on the broker’s budget and the affiliate’s ability to attract clients. It is a partnership where both the broker and the affiliate work on the same side of the business.

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