Forex Affiliate Programmes
If you have a website or a blog that talks about forex trading or covers financial news, you can become an affiliate of an online forex broker. You'll be able to earn commissions in exchange for promoting a trading platform within your website's pages.
Once you become an affiliate, a wide variety of marketing tools will be at your disposal for you to successfully set up promotional campaigns: banners, RSS feeds (news and analyses), economic calendars, real-time charts, etc...
You'll be able to choose between different types of payment plans: CPA (cost per action), revenue share (you get a % of revenues - this is awesome!) and 2nd-tier commissions (when you recruit other webmasters).
| Brokers | CPA | Revenue share | 2nd-tier programme | Payment | Register |
|---|---|---|---|---|---|
| AvaTrade | $200 to $400 | 10% | 10% | Skrill, PayPal, bank transfer | Open an account |
| easyMarkets | Starts at $400 | $10 per lot | 10% | Skrill, bank transfer | Open an account |
| Eightcap | $200 to $400 | Up to 60% | 10% | Bank transfer, Crypto, Skrill | Open an account |
| FxOpen |  | Up to $10 per lot |  | Credit card, bank transfer, Skrill, Neteller, WebMoney, cryptocurrencies | Open an account |
| HF Markets | $650 | 60% (clients outside of EU) | 25% | Bank transfer, Skrill, Neteller, WebMoney, Bitcoin | Open an account |
| Pepperstone | $200 to $400 | | | Bank transfer, Skrill, Neteller | Open an account |
| Plus500 | $200 to $800 | | 10% | Bank transfer | Open an account |
| XM | $250 to $650 | Up to $15 per lot | 10% | Skrill, bank transfer | Open an account |
| XTB | $30 to $600 | | 10% | Skrill, bank transfer | Open an account |
1. Revenue share
For some brokerage firms, these types of agreements can be very attractive. In practice, if a trader simply signs up and doesn't make any trades, the broker doesn't have to pay you - the affiliate - anything. Instead, the broker only pays you a percentage of the fees and spreads it receives from traders. Therefore, the financial risk associated with this system is very low.
However, this system has one slight drawback - for the brokerage firm. The broker has to share the revenues obtained from certain traders indefinitely with the affiliate webmaster. In general, the broker can't just make one fixed payment and then keep all the future earnings for itself.
Another problem is that not all traders who sign up for a trading account will deposit funds and engage in daily trading activity. This means that an affiliate can bring in 10 traders but only benefit from the trading activities of 3 of them since the other 7 traders simply changed their minds and didn't deposit funds or start trading.
2. CPA (cost per action)
Another commonly used system is the cost-per-action commission system. The underlying principle is that if the affiliate succeeds in recruiting a trader and the trader meets certain criteria, the brokerage firm will pay the affiliate a fixed commission for each candidate. The exact percentage varies depending on the location of the new trader and a few other factors.
Needless to say, this type of arrangement benefits both parties. Online affiliates can receive substantial payments for each client that meets the broker's requirements. Compared to revenue sharing agreements, this gives them the opportunity to earn a higher income.
The disadvantage of this system for brokers is that there's no guarantee that the trader will continue to trade with them after the broker has made the cost per action payment to the affiliate. As these fees are generally higher than those in other categories, there is always the possibility that the broker will run a deficit. Although this is unlikely to happen for the majority of traders, it is a threat that brokers are aware of.
3. Cost per lead
Another commission system is cost per lead. Here, the affiliate receives a one-time fixed payment for each trader he or she brings in. This can also be the best choice for brokers, as they only have to make one payment for each new trader and they aren't required to share potential commissions with the affiliate.
On the other hand, brokers make it clear that if you want affiliate marketing services that are similar, the total amount of commission will be much lower than a cost per action system. Therefore, this may not be the right approach for online affiliates who want to increase their monthly earnings.
There's also a big disadvantage for brokers. There's no indication that the person who has signed up and verified their email address and contact number will be able to deposit money and trade on a regular basis. Therefore, there's also some financial risk for them in this scenario. However, as the payment levels are not as high as in the two previous schemes, the risk exposure here is usually lower.
4. Hybrid commission systems
Some affiliate marketers are very fond of this commission structure. However, as with the previous systems, it has its drawbacks. The truth is that the dollar or percentage value of commissions may even be lower in hybrid arrangements. For example, the broker may suggest that it pays the affiliate several amounts of the revenue generated by the trader in a revenue sharing arrangement. But since the cost per lead often includes a flat fee, the marketer's share of the hybrid could be limited.
Revenue sharing (RS), cost per action (CPA), cost per lead and hybrid schemes are the main forms of commissions offered by forex affiliate marketing systems. Each has its own advantages and disadvantages. Apart from financial considerations, you should look for a good account manager and a brokerage firm with a good reputation when choosing an affiliate programme.
How can I choose the best forex affiliate programme?
Now that we've covered the 4 main forex affiliate programmes, the next step is to determine which one is the best one for you. Consider the following factors to determine which ones to accept and which ones to reject:
- If you don't have a lot of time to advertise your affiliate services by making banners, visuals and posts, look for affiliate services that provide you with appropriate promotional materials (especially banners!).
- It would be ideal if the broker offered training on how to effectively promote their services online. Remember that affiliate marketing is a collaboration. So make sure your partner can help you promote their brokerage firm's services.
- Make sure you partner with a legitimate broker to avoid any deceptive moves that will result in losses for your traders. To do this, you need to learn how to recognise and avoid forex scams and frauds.
- You'll need information to make the best possible decision. This way, you'll be able to find a system designed for specific needs. It will be easier for you to rule out choices that don't meet the requirements of a successful forex affiliate marketing programme.
- Learn some tips and get feedback from knowledgeable affiliate marketers by joining affiliate forums. However, before you accept their suggestions, be smart enough to assess them.
- Make a list of all the pros and cons of each programme you're considering to see the differences between them; then compare the benefits of the programmes using your own checklist.
Take the time to gather all the info you need to choose the best programme for you. Remember that it's better to make an informed choice, even if it takes longer, than to make a hasty but mistaken decision.