May 29, 2022

CFD Affiliate Tip: Treasuries & Bonds

Promoting Treasuries and Bonds

Many CFD affiliates are missing out on the opportunity to promote treasuries and bonds. They are traditionally one of the world’s most reliable financial instruments and are the go-to asset for traders who need low-risk investments. 

You can easily promote treasures and bonds and earn high commissions from your broker partner program. One of the advantages of bonds is that they are potentially attractive to all traders. Even aggressive forex and crypto traders, who typically embrace high-risk trading strategies, are often receptive to hedging their portfolios with more stable assets. 

2022 is an exciting time to promote government bonds and treasuries. The financial markets are uncertain, and unpredictable global events create new volatility. There are definite opportunities for CFD/broker affiliate partners to profit from treasuries and bonds. Read on for a simple overview of these potentially lucrative assets and some top tips on how to promote them. 

What are Treasuries and Bonds

Bonds (also known as treasuries or securities) are mainly issued by national governments and to a lesser extent by major companies and organisations. A bond is a convenient way for a government to raise money without raising taxes or negotiating complex loans. A bond is simply the modern equivalent of a promissory note. 

The buyer pays cash for each government bond. There is a contractual agreement that the initial purchase price will be fully redeemable when the bond matures after a fixed period, e.g. ten years. The bond also yields fixed interest payments – usually at six-monthly intervals. In effect, a bond is a form of a loan. Just like many other forms of debt, bonds can be resold. 

The global bond markets function a little bit like the stock markets. Bonds like the Euro – Bund and Japan Government Bond are well known financial instruments. According to normal market forces, they rise and fall in value and are traded like stocks. Factors like inflation rates, perceived government stability, and investor confidence in the broader markets affect bond prices.

Bonds and Treasuries Summary

Key info for CFD broker affiliate partners who want to promote treasuries and bonds:

  1. Bonds, government treasuries, and securities are tradable financial instruments
  2. Government Treasuries are considered one of the safest long-term investments.
  3. Affiliates can promote bonds as a convenient way to balance a portfolio with low-risk assets. 
  4. AvaTrade allows traders to open CFD positions on the Euro – Bund and Japan Government Bond.
  5. Many CFD affiliates neglect to promote bonds and treasuries. There is a niche opportunity to convert traffic and earn high commissions. 

What are CFD Bonds?

There is a lot of confusion about CFD bonds. If you want to make money as an affiliate, you need to be completely clear about CFDs and bonds. Fortunately, it’s fairly simple: 

  • A CFD is a contract for difference; it is a convenient form of trade that allows online traders to open positions on various assets – including bonds and treasuries. 
  • A bond is an asset like the Euro – Bund or Japanese Government Bond (as previously explained). 

A CFD bond is a trader term for a contract for difference on a bond.

When you promote bonds and treasuries, you must explain these terms on your affiliate site. 

You can use CFDs as a strong selling point and create all kinds of high converting marketing materials. 

CFD Bond Trading

When you create educational materials for your affiliate site (or content for YouTube and TikTok), take the time to explain the potential advantages of CFD trading. 

  1. A CFD is a type of financial derivative. CFD traders aim to profit from changes in the value of an underlying asset. They don’t purchase the asset. When you promote bonds and treasuries, explain to traders that they can potentially profit from the market movement of bonds – but never have the inconvenience or financial commitment that comes with buying bonds.
  2. CFD traders can trade LONG (buy) or SHORT (sell) when they open CFD positions on bonds. Online traders can potentially profit from any market movement and can aim to trade profitably under all market conditions. If their analysis suggests that a bond will fall in value, they can use that insight to try and make money. 
  3. AvaTrade offers leveraged CFD trading of up to 400:1 on many assets. As long as traders meet the required margin, they can use the broker’s money to increase their market exposure and potentially increase their profits on any CFD position. AvaTrade provides negative balance protection to limit any potential losses from leveraged trades. It also offers a free paper trading account and trading calculator. 

When you create high converting affiliate site content, you can focus on the potential advantages of CFD trading. Aim to be objective and create balanced content that explains potential risks and how to practice effective risk management. 

How to Promote Treasuries and Bonds 

When you promote treasuries and bonds as a broker affiliate partner, take the time to familiarize yourself with the broker’s assets and the trading platforms. A blog post or guest article entitled How to Trade Bonds and Treasuries Online will be much more credible and persuasive if you discuss the merits of different platforms for trading bonds.

For example: whether traders need MT4 or MT5 or whether AvaTradeGO is more suitable than Web Trading. 

High inflation rates are a significant issue in 2022 and will possibly continue to affect the markets in 2023. Emphasize to traders that CFD trading allows them to aim for high profits if worries about inflation are causing volatility – or even bearish trends – on the bond markets. Successful online affiliates regard market volatility as their greatest ally. Volatile markets create headlines, which in turn create public interest in trading. 

Use your social media profiles to exploit financial news headlines. Be the first to jump on the bandwagon whenever there is a new story. If the stock market plunges or the price of Bitcoin falls thousands of dollars, launch a new set of engaging creatives promoting bonds. Your ability to publish CFD affiliate links at short notice will give you a clear competitive edge. Facebook, Instagram, and Twitter are still vital money-making tools for affiliates. 

Your partner program can help you with free, high converting marketing materials. They’re always keen to attract bond traders and have a lot of experience in affiliate campaigns. Use your initiative, read the financial press, and look for marketing opportunities. Bonds are issued by governments and are traditionally low-risk assets. They are at the opposite end of the trading spectrum from cryptocurrencies. You can use the government connection to build trust with potential traders. 

The final key to success when promoting treasuries and bonds is to work with a reliable partner program. Choose a program that promotes a regulated, well-established online broker with proven experience in the bonds market. You need to know that you’re working with pros – that means a tailored commission plan, free marketing materials, and consistently high commissions! 

FAQ

How do I find affiliate traffic when I promote bonds?

There are two broad classes of traders who you can target when you promote bonds. The first is people who prefer low risk, long-term investments and aim to earn a regular income from the interest payments on each bond. The second is traders with broader interests who want to balance their portfolios with low-risk assets. They view government treasuries and bonds as a form of hedge. You can target both these demographics with campaigns and site content. Don’t forget newcomers who’ve never traded before when you promote bonds. You can also publicize volatility in the bond markets to attract impulsive or opportunistic traders.

Can I earn high commissions promoting bonds and treasuries?

Yes, there are great opportunities to earn high commissions when promoting bonds and treasuries as an affiliate. Partner programs want conversions and are ready to pay high CPA or Dynamic CPA commissions for traders who sign up and make the first deposit. They know that most traders will open positions on a whole range of assets. It’s definitely worth your while to target bond and treasuries traffic. You can earn high commissions all year round from this profitable trading niche. You’ll also face less competition for your traffic because many affiliates overlook the opportunity to promote bonds and treasuries.

Should I focus on promoting bonds and treasuries in 2022?

2022 is an excellent time to promote bonds and treasuries. The bond markets are volatile, and there are millions of people worldwide who are currently looking for alternative investments. High inflation rates make people nervous about conventional savings plans, and there is widespread interest in online trading possibilities. It’s worth doing basic research on assets like Japan Government Bonds and Euro-Bund at AvaTrade. You can easily update and improve your current site content to promote bonds. You can also run some trial campaigns on social media and explore the possibility of paid promotion.

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