Different Commissions Basis for Forex Affiliates
June 20, 2019
The currency market is a place where
daily trading volume exceeds five trillion dollars. In some days, even more.
as we know it today or foreign exchange began in the early 1970s when the United States scraped everything
left from the Bretton Woods agreement. Currencies began to free-float against
each other, and Forex trading became available to the
retail trader once the Internet and online trading became a reality.
with technological improvements, many brokerage houses appeared. As such, stiff
competition leads to aggressive ways to
promote the business, with almost all brokers running some affiliate program.
make a living acting as an introducing broker on behalf of the brokerage house.
A good affiliate
runs an online business that constantly
drives leads and traffic to the Forex broker’s website, and an outstanding affiliate runs multiple websites, email marketing campaigns, develops landing pages to
build hot leads, and is involved in multiple commissions schemes with more than one
of the different partnership
types possible, a few ones stand out of the crowd, such as the CPA,
revenue sharing and/or a mix between the
Forex affiliate commission
program based on CPA (Cost Per
Acquisition) is the most popular way of partnering with a Forex broker. And, truth be said, most fair.
the end, if the affiliate can run traffic
and generate leads that convert into trading accounts opening and funding, the
job the brokerage house entrusted it to do is
completed. The CPA agreement turns into a commission only when and if
the trader opens a live trading account.
Forex brokers (brokers that are new on the market and have a budget to attract
as many customers as possible) usually run aggressive affiliate programs. The
idea is to partner with individuals or companies that run a big affiliate
business and attract them via large
commission for a trader that opens and funds
a trading account starts at about $250
but can go much higher. Forex fairs and expos are
organized with this purpose: the bring affiliate and brokers together,
to negotiate deals and sign affiliate contracts.
broker is interested in what are the affiliate marketing and affiliate promotion strategies used on the Forex affiliate program,
while the affiliate is interested in getting the highest commission possible
for the introduced traders.
sharing goes a bit further. While the affiliate is compensated (not mandatory
though) for bringing in new clients that open a live account, the bulk of the
commissions come from the profit the trader generates for the broker.
may offer to share part of their spreads (which is the vehicle that makes most
of the revenue for a brokerage house) or any other volume-based-scheme that
depends on the trader’s activity.
hybrid solution is any mix between the two, and a brokerage house is free to
run as many “nuances” of its affiliate
program with different affiliates. Depending on the size of the potential business,
huge discounts are possible.