- What is Commodities Trading?
- 4 Factors that Influence Commodity Prices
- What Commodity CFDs Can I Promote?
- Energies CFDs
- Precious Metals CFDs
- Agriculture CFDs
- How to Promote Commodity CFD Trading
- Commodity CFD Trading at AvaTrade
- Promote Commodity CFD Trading on Social Media
Commodity CFD trading is a highly profitable market that offers outstanding opportunities to broker affiliate partners. We saw some unusual market conditions during the COVID-19 pandemics of 2020 and 2021, with a significant media focus on cryptocurrencies and stocks.
Many CFD affiliates have either overlooked the lucrative commodities markets or aren’t aware of the high commissions that affiliate partner programs are ready to pay.
If inflation becomes a significant problem in 2022, we may see a sudden move into commodities as a hedging tactic. Any lack of investor confidence in the US dollar, or major US stocks, has traditionally resulted in a shift towards Gold. Commodities could be about to gain new market prominence. We’ll take a closer look at some of the major commodities. We’ll also explore why commodity CFD trading is ideal for affiliates and how to quickly profit from commodity trading as a CFD affiliate program partner.
What is Commodities Trading?
A commodity is essentially any material or product that can be traded. Hard commodities include precious metals like Gold or platinum and crude oil or natural gas energy products. Soft commodities include agricultural products like corn, coffee, or soybeans.
Many commodities are essential to human survival and the daily functioning of national economies.
Commodity prices follow the basic rules of supply and demand, and the markets create endless trading opportunities.
4 Factors that Influence Commodity Prices
- Supply and Demand
- Stock and Inventories
- Currency Strengths
- Inflation Rates
Different commodities are perceived as having different risk levels like other asset classes. Some (like oil and Gold) are volatile and liquid historically than others. Commodities are uniquely responsive to geopolitical and environmental events. Something as simple as the weather can massively affect the price of an essential agricultural commodity or stimulate demand for heating fuel.
Commodities traders can specialize in niche markets or maintain a balanced portfolio of diverse assets.
What Commodity CFDs Can I Promote?
There are three broad categories of commodity CFDs that are easy to promote. Even people with no financial background often have some awareness of the assets. Energies and Metals currently get the most attention. Affiliates who promote Agricultural commodities face the least competition.
Ask the average person in the street, “What is commodities trading?” and the chances are that they’ll mention Crude Oil. The 21st century will probably see a fundamental shift away from fossil fuels, but Energies still dominate the commodities market. Oil prices confounded skeptics in 2021, rising to the $70 a barrel range by the end of the year. An upper range of $100 a barrel in 2022 is a real possibility.
Popular AvaTrade Energy Assets
- Crude Oil
- Brent Oil
- Natural Gas
- Heating Oil
Precious Metals CFDs
Precious Metals like Gold, silver, and copper were traded as far back as prehistoric times. The modern metals trade is intricately connected to significant currencies and inflationary pressures. Gold, platinum, palladium, and copper also have vital manufacturing applications. It’s easy to tempt fate by predicting future gold prices. Surprise global events can cause extreme volatility within hours. On a general level, Gold may break out of its 200 day moving average around the $1,800 range and push towards $2,000.
Popular AvaTrade Metals Assets
Staple food commodities are arguably the world’s most dependable asset – at least in the sense that there will always be a market for food products. Agricultural commodities also include cotton and lumber, generating a high trading volume. Agricultural commodities lack the glamor of metals and energies but present excellent marketing opportunities for switched on affiliates. Almost everybody drinks coffee, but coffee bean prices soared in 2021. If they hit $2.50 a pound in 2022, you can create some excellent marketing materials.
Popular AvaTrade Agricultural Assets
How to Promote Commodity CFD Trading
Most online traders are looking for quick and convenient profits. They expect the option of flexible risk management, combined with minimal commitment and liability. Commodity CFD trading evolved precisely for this trader demographic.
Very few online commodity traders want to own barrels of oil or tons of wheat. Always explain that CFD traders aim to profit from the market performance of a particular commodity. They don’t buy the assets that they open positions on.
Successful broker affiliates understand exactly why CFDs are attractive to traders. You need to emphasize that CFD trading is fast, convenient, and transparent, especially with top-tier platforms like MT4 and MT5. Build trust by mentioning official regulation and broker liquidity.
Commodity CFD Trading at AvaTrade
AvaTrade is one of the leading online brokers for commodity CFD trading. It offers an excellent choice of both hard commodities and soft commodities. When you promote AvaTrade as an online affiliate, you can drive profitable traffic by focusing on four critical points for all commodities:
AvaTrade allows margin trading on commodities. Traders can increase their market exposure with leverage of up to 400:1 (depending on account type). Potential profits are dramatically increased, although risks increase in the same proportion.
Commodities respond rapidly to market forces, and their prices can quickly shift. Even relatively stable commodities can create good opportunities for traders who understand the individual asset.
- Long & Short
Traders can open either Long or Short (buy or sell) positions on any commodity. If you correctly anticipated the market movement, it’s entirely possible to profit from an asset that declines in value.
It’s possible to open CFD positions on commodities for as little as $100. AvaTrade provides excellent trading platforms and trading tools – and keeps trading costs to a minimum.
Promote Commodity CFD Trading on Social Media
The advantage of promoting commodity CFD trading is that the core assets are always in the news. Headlines about oil and gold prices will give you almost unlimited material for blog posts and website content. Precious metals have a high-interest value, and any good quality creative will attract clicks.
Technical charts showing asset prices are visually striking. They can easily be used as high-converting marketing materials. When running social media campaigns, you need instant engagement with minimal content. A chart showing a surge in the price of Gold is a powerful way to present your affiliate link.
Traders interested in stocks, forex, and cryptos are usually receptive to the idea of commodities. Use guest posts, trading tutorials, and even broker reviews to inform and educate your site traffic about commodities. Start with the fundamental question: what is commodities trading? Crypto traders will quickly see the potential of volatile commodities; stock traders may be looking for different risk levels.
Adjust your content accordingly, and cover all the potential benefits of joining AvaTrade.
Is it better to be a Commodity affiliate or a Forex affiliate?
You can earn very high commissions as both a commodity affiliate and as a forex affiliate. When you sign up with AvaPartner, you’ll be a broker affiliate partner who promotes a range of assets. You can adapt your marketing campaigns to focus on commodities, forex & cryptos, all kinds of stocks, and other assets like indices, options, bonds, and ETFs. There are strong correlations between some major currencies and commodities, e.g., the USD and Gold and the CAD and Oil. These are great to explore in blog posts and guest posts. AvaPartner will help you out with free marketing materials whenever you see an opportunity to drive traffic.
How do I earn high affiliate commissions from commodity trading?
Talk to AvaPartner today and negotiate the right commission plan for your affiliate business. This could be a CPA or Dynamic CPA structure or a RevShare or Master Affiliate deal. You’ll be able to earn high commissions from your first day in the partner program. There is likely to be significant trader interest in commodities right through 2022. If you analyze the markets and public sentiment, you’ll be able to convert high-value traffic and earn high commissions regularly. The advantage of working with AvaPartner is that you’re always free to renegotiate your commission structure.
Which Commodity CFDs should I promote in 2022?
You initially need to promote the most attractive commodities to your online traffic. If you have good analysis and user engagement, you’ll have a clear idea of what works. As you build your affiliate business, monitor the media daily. Every news story is a potential marketing opportunity. Aim to react within a day and get viral posts – with good affiliate links – across Facebook, Instagram, and Twitter. Good examples include Starbucks raising coffee prices and the price of gasoline at the pumps. Coffee and gasoline are popular commodities at AvaTrade.