A CFD (contract for difference) is a revolutionary financial instrument that is transforming online trading. CFDs account for a high volume of non-institutional trading and investing and generate enormous profits for brokers. As a successful affiliate partner, you can earn a lucrative – and ongoing – share of these profits whenever you bring high-value traders to a broker.
How to CFD trade: A quick guide
CFD – Contract for Difference
Although a CFD is technically a contract between a broker and a client, it usually takes the form of a one-click trade that is opened via an online trading platform like AvaTradeGO. A CFD allows the broker’s client to invest or trade on the performance of an asset like OIL or a currency pair EUR/USD without actually buying the underlying asset.
The trader can open either a long or a short position on the asset and potentially benefit from any market movement. For example, You may think that OIL will rise in value, so you open a long position on OIL at a specific price. Then you close the position once the asset price has increased to meet your investment or short-term trading goal. The difference between the opening price and the closing price of the position represents your profit.
Conversely, suppose you think that OIL is about to fall in value. In that case, you can open a short position and close the trade when the price of OIL has fallen to a level where you have earned an acceptable profit. Again, the difference between the position’s opening price and closing price is your profit on the trade. Your ability to profit from a CFD trade depends on your analysis of market conditions and ability to gauge the performance of an asset.
Advantages of CFDs
- Fast, convenient and simple.
- CFDs give you access to a wide range of assets, including forex, cryptos, stocks, commodities, bonds, ETFs, indices and more.
- CFD trading is highly transparent. Regulated brokers impose no hidden costs.
- Potentially profit from any market conditions.
- The trader has 100% control of the trade.
- Trades can be highly leveraged.
- Automated risk management tools are available.
- No financial liability beyond the sum invested in a particular trade.
Traders should remember that CFDs are a potentially high-risk investment since they give you tremendous leverage. Although you can make extremely high profits in a short period, you can also quickly lose your initial investment.
Your perspective as a CFD affiliate partner
As a broker affiliate partner, you don’t need to be an expert CFD trader or a financial expert. However, you need to know the basics of how to CFD trade. Suppose you want to be a top tier broker or Forex affiliate partner and earn the highest commissions. In that case, you also need to understand how the financial markets work and follow the financial news daily.
Your success as a broker affiliate depends on your ability to discuss CFD trading and the markets with an authoritative voice and produce relevant and compelling content. You’ll also need to identify market events and opportunities to promote as part of your marketing strategy.
How to promote your CFD affiliate business
The most successful CFD affiliate partners usually promote their CFD affiliate links across a broad spectrum of marketing channels. The goal is to cast a wide net and draw in a large number of high volume traders. To do this effectively, you need to understand how the marketing channels work and publish good quality creatives to convert traffic.
However, before you even begin to think about personal branding and marketing strategies, you need to sign up with a top-quality partner program and promote a leading online broker. Suppose you’re going to focus your talents on bringing traders to a broker and invest time, money, and effort in building your business. In that case, you need to know that you’ll earn high commissions. You also need to know that you’re working with reliable, skilled professionals.
CFD Affiliate Tips
This simple checklist is designed as a handy reference to get you started as a CFD broker affiliate. It’s not a definitive guide to the business, but it will set you on the right path from Day One.
- Promote a regulated broker like AvaPartner
This is the only realistic way to guarantee long term profits from each trader and be sure that you’ll be treated professionally by your partner program.
- Learn the basics of CFD trading and the markets
A free demo account is a great tool. Subscribe to financial news alerts, read the financial press and generally keep your finger on the market pulse.
- Negotiate the right deal with your partner program
Your goal is high long-term revenues. Take the time to research the benefits of CPA, Hybrid CPA, RevShare and Master Affiliate deals – negotiate a tailored plan.
- Define your personal brand(s)
You’ll get better and faster results if you create a personal brand and develop it. Take pride in your public persona and voice. Improve it through systematic testing.
- Create a spectrum of social channels
Be energetic and proactive. Join every social media platform you can, develop a following, interact with users and get the content – and the links – out there.
- Invest in your websites and blog
If you’re an online affiliate, these are essentially your home base, regardless of all the other marketing strategies and channels you develop. Make them as good as you can.
- Understand the importance of SEO and keywords
Organic SEO can push your Google rankings all the way up in just a few months. Learn the basics and optimize all your content – whether it’s your blog posts or Instagram bio.
- Master the art of paid advertising
Start with Google and Facebook ads, set a budget and aim for high ROIs. You’ll also need to learn the basics of analysis. You can also hire an expert to run your campaigns.
- Develop powerful creatives
Your creatives need to stand out from the crowd and drive traffic. Start with marketing materials from your partner program and add your own branded material.
- Reach out and add links
The internet is a vast space. Visit other people’s sites, forums, and social channels and offer valuable comments, guest posts, and promotional material seeded with links.
- Connect all your marketing efforts
All your diverse marketing efforts should be interconnected to build a network. For example, drive a Facebook user to the right blog post and an affiliate link.
- Become a bigger affiliate
Consider whether you can become an Introducing Broker, Master Affiliate or Trading Academy – and ramp up your affiliate earnings!
How much can I earn as a CFD Affiliate?
How much do you want to earn? Avapartner has already paid out over $250,000,000 in commissions to its affiliate partners. If you start the right way, you can quickly grow your business and earn high revenues. Plenty of skilled affiliates can earn six-figure commissions every month.
Do I need to teach people how to CFD trade?
Offering to teach people how to CFD trade is an excellent marketing strategy. You can create free ebooks, video courses, one-on-one tutorials, webinars and other learning resources. There are plenty of effective keywords to exploit when you advertise, and it’s ideal for social media channels. Teaching CFD trading is also a possible path to earning high revenues as an introducing broker.
Are CFDs a legitimate form of investment?
Yes – they are 100% legitimate. AvaTrade is regulated in 7 major global jurisdictions and offers CFD trading to clients across the world. CFDs are entirely legal and are widely traded. The only thing to bear in mind is that CFD trading is inherently volatile. You can make very high profits in a short time, especially with leveraged trades. There is also a risk of loss (although this is limited to individual trades). CFD trading isn’t suitable for everyone, but there are high volume traders who’ve been making steady profits for years. This is the kind of traffic you are targeting. If you can attract these serious traders, you’ll earn revenues from them as long as they remain with the broker.