A Contract For Difference (CFD) is a derivative financial instrument which enables the concerned traders to speculate the price changes of the underlying asset without taking its ownership. A CFD is essentially an agreement between a ‘buyer’ and ‘seller’ based on their respective speculation of the asset price. In case the asset price rises, the buyer pays the difference between the value of an asset at the time of contract and the current value. In case the asset price falls, the same difference is paid by the seller.
CFDs are a creative way of making money using your analytical skills. Previously, institutional traders in the United Kingdom utilised this financial tool to limit their exposure to stock market movements.
With the growth of information technology and development of online trading platforms, CFDs have become increasingly popular and are used for trading a range of markets including commodities, shares, forex, cryptocurrencies and stock market indices.
Why CFD trading affiliate programs have higher earnings than other affiliate programs?
The core idea behind affiliate programs is to market other people’s products through the affiliates’ network and earns a commission once a potential buyer is referred or buys the product. In the case of online trading, affiliate programs are where the merchant website, such as AvaTrade partners with an affiliate. The affiliates are paid based on the amount of traffic they generate and are determined according to trading volumes for the merchant website using their marketing and financial skills.
CFD affiliate programs are, in fact, a creative niche in the world of online trading. They are especially profitable if one has a basic understanding of the financial market, digital marketing knowledge, and have the right partnerships. There are a number of reasons why CFD affiliate programs are more lucrative as compared to other programmes.
Firstly, CFD Trading involves large sums of money as it is linked back to highly monetised asset markets. As an affiliate, this means higher commissions per transaction. Critics note CFD trading to be riskier than other investments. But keep in mind that higher risk also translates into higher rewards and greater business development.
Secondly, using the option of leveraged CFD trading, an investor can take a large position without having to pay the full cost of the underlying asset at the start of the trade. This makes CFD trading quicker and much more accessible to a large majority of interested investors which means a larger target audience for an affiliate.
Partnering with a CFD broker
Like any traditional sales process, your success as an affiliate is based on the superiority of the financial products that the broker is offering.
A significant portion of your success is determined by your choice of broker partnership. A reliable, regulated and transparent partner such as AvaTrade enables you to stress less and earn more. AvaPartner not only provides you with a range of marketing tools to help you boost your commissions but also facilitates by providing sophisticated tools such as its sophisticated dashboard and advanced analysis tools for tracking performance.
AvaTrade has developed its affiliate programs carefully keeping in mind the success and convenience of its partners, making it the best partner. Customised solutions are also available depending on your business model.
With having the right partner at your side, you’ll be able to see your profits soar from its affiliate program.
Here are just a few tricks of the trade to get started:
1. Focus on Quality and not Quantity
Quality traffic is what is important not just traffic to your site. By utilising AvaTrade’s promotional material and their expert advice, you will be able to drive quality traffic to your website, which in the end means more conversions and higher commissions.
2. Share your knowledge about Trading Platforms and Products
You need to establish yourself as an authority. Investors and traders will feel a lot better about following your trading advice if they know ‘this person knows what s/he is talking about’. Share your knowledge. and your expert opinions about financial products and platforms and why you choose to do what you do.
3. Embed AvaTrade’s links on your website and Promote them to Your Audience
Place affiliate links strategically on your website, content, and other marketing outlets and lets people know the value they are getting.
Partnering with a broker who is dedicated to your success enables you to develop a profitable business. Especially AvaPartner’s flexible and tailored commission solutions will not only allow you to go big but go big on your own terms.