The potential for profit with CFD and forex broker affiliate programs is HUGE! But you simply can’t go in blind into this most lucrative niche in the affiliate marketing industry. No worries, though. In this ultimate guide to getting started, our expert affiliate team will guide you through the entire process of becoming successful broker affiliate marketers, starting with guidelines on that all-important requisite for success…
Partnering with the Right Broker
While the potential for profitability is there, such profits will never materialize or, worse, all your hard work will be for naught, if you don’t partner with the right broker. And right from the start it is extremely necessary to do so! When you see an online broker inviting you to join its broker affiliate program, don’t get all excited. Before you even look into the attractive benefits the program is offering, take a breath and ask yourself:
- Who IS this broker?
- Can he be trusted?
- Is the online brokerage regulated?
- Are they credible?
Beware of online brokers operating a fly-by-night business. These types of brokers will most likely take advantage of your referrals, certainly a big blow to you and your reputation as an affiliate, or be unreliable or untrustworthy as far as paying your hard earned affiliate commission fees!
So here we laid it out for you in this blog post.
10 Critical Qualities to Look for in Your Online Broker That Will Ensure Your Affiliate Success
1. Regulation and licensing
Regulation equals reputation! To ensure maximum security for you and your referred clients, make sure the online broker is registered with the financial regulatory body of their country and that he complies with the rules set by that body. AvaTrade is regulated and licensed in the European Union, the British Virgin Islands, Australia, Japan, South Africa, and the Middle East.
Lack of regulation not only brings your conversion rate to almost zero (regulation is the #1 factor when traders choose a broker), but also makes it difficult for you to deal with the broker (unregulated brokers tend to be unreliable in most cases, as they do not have to comply with any rules and can act in any manner they see fit). As for future returns on all your hard affiliate marketing investment you will not be able to reap any future commissions if the broker goes out of business!
2. Significant presence and well established in the industry
Choose a broker with at least 3 years of successful presence in the industry – one who’s been constantly developing, enhancing his stature, and gaining popularity among traders. With such a long and solid history, the broker should have already built their reputation and business strategy, so it’s easier to promote them as well. AvaTrade, for example, is a well established reputable brokerage since 2006
3. The latest trading tools
Make sure your affiliate broker offers a wide range of trading tools to meet your referrals’ needs – including the popular MetaTrader 4 and 5, WebTrader, offers Mobile Trading apps, – and other innovative technologies to help traders keep trading with the broker, such as the AvaTradeGO app- allowing traders to trade any time and from any place. Additional trading tools, such as market analysis, charting systems, signals, alerts, and watch list services, and social trading will also greatly boost your conversion rate as they are beneficial for traders.
4. Access to all the markets!
Know which markets the broker allows traders to have access to– commodities, forex, options? If the broker allows one to trade CFDs (Contracts For Difference), you’ve already got the edge because this lets you trade different markets. For example, partnering with AvaTrade enables you to use just one trusted broker to trade and leverage ALL the different financial markets – from Bitcoin to blue-chip stocks. Trade forex, stocks, world Indices, options, commodities, ETFs and more.
5. Service support
As an affiliate marketer, you want to be able to refer clients, traffic, customers from all over the world, so a broker with a multilingual customer service and regional offices around the world will definitely attract your referrals. People tend to open a trading account with a local broker who has local support, especially in countries where targeted language is essential for attracting clients due to lack of English language skills.
6. Marketing support
The marketing support you receive with the broker affiliate program you choose is essential for your success whether you are a beginner or expert affiliate marketer. This is due to the fact that the broker invests a lot of money in beautiful and engaging marketing materials that are created to make their affiliates succeed. Also the one on one dedicated support offered to affiliates is equally as important here, since you can gain great marketing insights and marketing affiliate support that will increase your commissions and help your business grow. Not all broker affiliate programs offer this type of support, however, and many offer outdated marketing materials that will not attract your desired traffic.
Partnering with AvaPartner, for example, ensures that you get your own dedicated affiliate account manager, free tools that accelerate your success, and marketing and promotional support – including eBooks, banners, mailers, widgets, expertly designed landing pages, and other embeddable promotional material for the affiliate’s website. Attractive landing pages designed by expert graphic designers, and so much more.
7. Offers Flexible commission programs
Know which types of affiliate commission plans the broker offers, and fully understand each type. Most CFD and forex affiliates choose either RevShare or CPA. CPA (or Cost Per Acquisition) is the fee you receive when the trader you referred opens a trading account with the online broker, deposits funds into his trading account, and starts trading. You gain a one-time payment for referring the new trader.
On the other hand, RevShare (or Revenue Share) gives you a percentage from “netspreads” (spreads minus bonuses) and this can vary depending on many factors. You have a share in all the profits, losses, and sales of your qualified referrals for as long as they are active. While most affiliates love this type of structure due to its potential of tremendous future gains, remember that it also largely depends on the trading activity of your leads.
Look for a broker who’s willing to customize the commission plan to meet your business needs, and who offers a tracking software dashboard to track your commissions. To find out more about broker and forex commission plans read this blog post “Forex Affiliate Programs: Which Commission Plan Should You Choose?”
8. Deposit/withdrawal options
Let your referrals have a variety of methods to deposit and withdraw to/from their broker. Some brokers now even offer local deposits in certain countries, where your referrals can use their local online banking system to deposit to their broker with their own local currency – more convenient and cost-effective than international transfers with higher fees.
9. Demo tool
Choosing a broker who offers a demo account is critical. Whether your referral is a beginner or an advanced trader working on a new platform, he could benefit from a demo account that he can practice on before trading the actual markets. A demo account enables traders to take a test drive which can boost their confidence in trading the markets while getting accustomed to using the new platform.
10. Tracking and reporting system
When brokers give their affiliates access to their personal account, they can track things such as number of referred clients, ads performance, impressions, clicks, incoming traffic, received commissions and more. The more transparent and detailed the reporting system is, the better and more effective you’ll be at tracking your performance as well as optimizing it accordingly.
Did this guide give you a head start in your broker affiliate program?
Look for more tips on how to profit big with AvaPartner.