CFDs are one of the most popular forms of online trading. There are hundreds of brokers competing for traders – and for reliable affiliate partners who can bring them traders. We’ll take a closer look at the world of online trading and set out some clear strategies that will help you to profit as a CFD affiliate.
For anyone who’s new to online trading, some simple definitions will be helpful. The financial world has its own jargon, which can be off-putting to newcomers. Some aspects of trading can be complex. But you only need to know the basics to make money as a CFD affiliate partner. For the most part, promoting a broker is no different to promoting any other business or product.
What are CFDs?
A CFD is a contract for difference. It’s basically a method of trading that allows a broker’s client to invest on the performance of an asset without actually buying the asset. For example, you think that the price of Gold is about to rise. You open a trade on Gold at a certain price and then close the trade when the price has risen to an acceptable level. The difference between your opening price and your closing price is your profit. If you expect the price of gold to fall, you can take a short position. If the price does go down, the difference between your opening price and your closing price would represent your profits. A CFD is not an asset like Oil, Amazon stocks, or the US dollar, it’s simply a way to trade these assets without actually owning the underlying asset. The benefits that CFDs provide traders and investors with is in the tremendous leverage they can give you. At the same time, one must also be willing to understand the risks involved as well. For those that are willing to take the risks, CFDs can either provide you with enormous returns or severe losses.
What is a CFD broker?
A CFD broker is a company with an online brokerage that provides users with online trading platforms. These sites allow members of the public to open accounts, deposit funds and open CFD trades on a range of assets. The trading platforms allow secure individual trading via a PC or mobile device. Traders manage their own investments instead of using a traditional stockbroker to manage their portfolio. Traders who make a profit can either withdraw their funds or reinvest them in new trades.
Why are CFDs so profitable?
Online CFD brokers aim to operate with minimal overheads and costs. Online trading involves huge sums of money, much of which accrues to the brokers. Their business models include substantial budgets for affiliate partner programs.
If you can send traders to an online CFD broker, you can earn hefty commissions. Affiliate partnerships with CFD brokers is a simple and profitable business that is open to anyone with a website, blogs, or any other way of bringing traders to brokers. Read on to learn the shortcuts and avoid the pitfalls of being a broker affiliate.
How to find a CFD Affiliate Program
There is a single golden rule that you should always follow when you decide to look for a CFD affiliate program. Only work with a regulated broker. If you stick to this basic rule, there’s every chance that you will be able to profit as a CFD affiliate. Regulated brokers run legitimate online businesses. They aim to provide their clients with a high-quality service and retain them on a long-term basis. You can also trust a regulated broker to honor your partnership agreement and pay your full commission.
What is CFD broker regulation?
Almost every industry is overseen by professional bodies or government authorities. Their role is to ensure compliance with legal regulations and professional standards. Financial service providers like CFD brokers are no exception. However, when brokers run international operations, they may be subject to different regulatory bodies based in different countries.
AvaTrade is an international CFD broker that is regulated by the following authorities:
- Central Bank of Ireland
- B.V.I Financial Services Commission
- South African Financial Sector Conduct Authority
- Financial Futures Association of Japan
- Abu Dhabi Global Markets (ADGM)
- Financial Regulatory Services Authority (FRSA)
- Cyprus Securities and Exchange Commission
- Israel Securities Authority
With this level of regulation, AvaTrade can accept traders from most countries in the world. They operate as a global brand and guarantee clients a secure trading environment where their rights are protected.
AvaTrade has its own affiliate partner program called AvaPartner. If you join AvaPartner, you’ll be able to promote an established financial brand with an outstanding online brokerage and some of the world’s best trading technology. The combination of slick presentation, strong reputation, regulation, trading platforms, and assets, creates a brand that easily converts traffic.
AvaTrade attracts – and retains – high volume traders. If you can bring AvaPartner good leads, you have the potential to earn high commissions over a long period of time. If you have confidence in your site traffic, the best way to profit as a CFD affiliate is to negotiate a flexible commission plan.
One of the advantages of working with AvaPartner is that they are highly experienced. They also have a high budget. The program works with each affiliate partner on an individual basis and helps them by customizing a commission plan tailored to their business model. There is a flexible choice of deals on offer.
They also welcome several different types of affiliate partners and there are opportunities to grow and expand your affiliate business within the partnership program.
- Online affiliate
- Introducing broker
- Trading academy
- Money manager
- Call center
- Service provider
5 Key Strategies for CFD Affiliates
#1 Follow the markets
You don’t have to be an expert trader to profit as a CFD affiliate. But it’s definitely worth reading the financial press every day. Better yet, subscribe to your broker’s own newsletters and economic calendar. If you know what’s happening on the markets, you can quickly update your own marketing materials and exploit opportunities.
#2 Understand your target audience
If you know your own site traffic, you can optimize your messaging to convert leads. How sophisticated is your audience – are they experienced traders or beginners? Do they love technology or market news? Are they looking for fast profits or long term investments? You need to understand their expectations.
#3 Reach a wider audience
When you’re running a business as a CFD affiliate, you need to get your links out there! That means replicating your efforts across social media platforms and placing links back to the broker. If you already have Facebook, add Instagram links and Twitter. If you have a website, add a blog and start publishing on other sites like Quora or guest post on other leading high authority financial websites.
#4 Attend CFD affiliate events
The COVID-19 pandemic is slowly coming under control. Affiliate conferences should be back on the calendar this year. It pays to meet your affiliate program staff in person and talk about what’s on offer. Personal connections can really improve a business relationship.
#5 Set realistic business goals
Your partnership with the CFD affiliate program is a business. You need to run it as a business. Set clear goals and reinvest some of your profits in your websites. As you expand, consider paying experts to improve your marketing materials, manage your social media and handle your PPC campaigns. Set up more websites and consider whether you can diversify as an introducing broker or trading academy.
AvaPartner is a great choice for anybody who wants to profit as a CFD affiliate, with flexible commission plans and a structured program. As a regulated broker, they are scrupulous about honoring partnership deals and also provide outstanding marketing materials and other assistance.