Online trading can seem complicated if you’re new to affiliate marketing. There are all kinds of online brokers and partner programs and a variety of highly profitable commission plans. Many people who want to make money as a broker affiliate are unsure whether to focus on forex, stocks and options, or CFDs. In fact, they are all potentially highly profitable.
When you sign up with a top-class partner program, you can make money promoting various asset classes. We’ll explore the pros and cons of each type of asset and explain how to promote them effectively. We’ll also give you a basic rundown of online traders attracted to CFDs, forex, stocks and bonds. Once you understand the trader demographics, you can devise high-converting marketing strategies to convert traffic into profitable leads.
It Pays to be a Broker Affiliate and Promote CFDs????
As soon as you understand that forex, stocks and bonds are tradable assets and that CFDs are a form of trade, you’ll have taken your first step towards making money as a broker affiliate. Major online brokers offer CFD trading on a full range of assets. You can quickly start to promote CFD trading in general and profit from their massive popularity among online traders.
Once you establish yourself as a successful broker affiliate with a leading partner program, you’ll have all the tools and resources to promote niche assets and forms of online trading that don’t use CFDs. They are also potentially highly profitable, and you can substantially increase your monthly commissions.
- A broker affiliate can always target CFD traders and earn a high income
- broker affiliates can adjust their content and campaigns to target forex traders
- Top online brokers like AvaTrade also offer stocks and bonds. It can pay handsomely to promote them.
5 Things You Need to Know about CFDs?
A CFD is a contract for difference. It is a quick, simple and transparent form of online trade. CFD traders do not buy the assets that they speculate on. They open limited trades based on the individual market performance of a particular asset.
- CFD = Contract for Difference. The profit is the difference between a trade’s opening price and closing price.
- CFDs are a high-risk/high-reward type of trade. Traders can potentially make high profits quickly but can lose all the money they invested in a particular position. There is no additional loss or financial liability for the trader.
- CFDs are highly versatile. Traders can open CFD positions on assets that they expect to gain in value and on assets that they expect to fall in value.
- It’s possible to trade a variety of assets as CFDs. These include stocks, indices, commodities, forex, cryptos, ETFs, bonds, etc. Some online brokers allow clients to trade these assets without CFDs – but they will actually have to buy and sell the assets.
- CFD trading is hugely popular. New traders can start CFD trading with relatively small amounts of capital. You don’t need a financial background or specialist knowledge to earn high commissions as a CFD affiliate.
Forex, Stock & Option Trading
Promote Forex as a Broker Affiliate
Forex – FX – is short for foreign currency. The world’s forex markets are enormous and are mainly dominated by institutional investors. The major players in the forex markets include governments (via national banks), hedge funds, and corporate investors. When online trading really took off a couple of decades ago, the global forex markets suddenly became accessible to independent traders.
Online brokers provide trading platforms like MT4 and MT5 that give traders direct access to the money markets. Forex trading can be slightly more complicated than other forms of online trading. If you plan to make money from forex traffic as a CFD affiliate, it’s better to learn the basic principles and master the terminology.
Learn more about forex trading platforms here.
Online Forex traders tend to focus on short-term trading. They aim to buy and sell currencies and profit over the course of a single day. The majority of FX traders are men in their twenties and thirties. They tend to be aggressive, highly motivated to make money, and willing to take calculated financial risks.
When you promote online forex trading, you’ll need to create marketing materials and campaigns to attract this demographic. You’ll also need to understand their social media and browsing activity.
Promote Stock Trading as a Broker Affiliate
Stock trading is probably the best-known form of online trading. The stock markets are in the news regularly, and many people own stocks (shares) in major companies. Some companies pay regular dividends to shareholders. Stocks can be sold at a profit when they gain in value. One of the advantages for CFD affiliates who want to promote stock trading is that there is a considerable range of risk levels within the stock market.
Online stock traders are attracted to various assets and have different trading goals. Some want to make quick profits from volatile, high-risk stocks; others seek steady gains from reliable tech stocks and utilities. Others are looking for a lower-risk hedge to diversify a personal portfolio containing volatile forex and crypto assets. Newcomers to the stock markets may only have the vaguest concept of their initial goals and strategies.
CFD affiliates can promote CFD stock trading and create targeted campaigns to attract all kinds of potential stock traders. It’s also worthwhile creating marketing materials for women. There are plenty of female stock traders, and the older demographic is well represented in the stock markets. It’s not a coincidence that pension funds are serious, high-volume stock buyers.
Promote Option Trading as a Broker Affiliate
Options trading is not well understood, and many broker affiliates miss out on this profitable niche market. If you can successfully promote online options trading, you can earn high monthly commissions. CFD affiliates who want to make money by promoting options trading have a unique advantage with AvaTrade. The broker has a proprietary options trading platform called AvaOptions.
AvaOptions is a highly sophisticated trading platform that is still intuitive enough for the average online trader to master quickly. The basic principle of options trading is that the trader uses an options contract to reserve a particular price on an asset. This is known as the strike price and remains valid until its agreed expiration. As long as the strike price is valid, the trader can sell the asset at a higher or lower value than its current market price. Options trading has some similarities to CFD trading.
AvaOptions gives options traders several effective trading tools. These include risk management tools, up to 13 different option trading strategies, and a live pricing widget. When you feature the AvaOptions trading platform and trading software in your content and campaigns, you’re far more likely to convert traffic and earn commissions from options traders.
Get Started as a Broker Affiliate
If you’re keen to make money as a broker affiliate, you must sign up with a partner program. Finding the right partner program and working with experienced professionals is vital. It would help if you also promoted a popular online brokerage with enough assets, trading platforms, and global reach to make conversion easy. The kind of traders who will earn you high commissions usually won’t sign up with a second-rate broker.
Partner Program Checklist
- The partner program promotes a regulated online broker
- The broker has a full range of assets – including CFDs
- The broker offers several top-quality trading platforms
- The Partner program allows a choice of commission plans
- There is an option to request free, high converting marketing materials
Broker Affiliate Marketing: Take Home Message
If you build your affiliate business around promoting CFD trading, you can earn high commissions. Partner programs happily pay out six-figure rewards to affiliate partners who deliver high-value traders.
- Promoting CFD trading is relatively simple
- You can build a profitable affiliate business from scratch
- You don’t need specialist financial knowledge to make money
Broker affiliates who promote AvaPartner have unique opportunities to promote options trading with the highly rated AvaOptions platform (and FX Vanilla Options). You can substantially boost your existing commissions if you tap into this niche market.
AvaTrade is also highly respected in the world of online Forex trading. It is one of the easiest FX brands to promote as a broker/CFD affiliate. High-volume forex traders can become a significant passive income stream if you have an excellent RevShare deal.
If you see opportunities to promote CFD stock trading (social media can be ideal), AvaTrade is the ideal online brokerage for both new and experienced traders. When you place AvaTrade at the center of your campaigns, you can target the entire spectrum of stock traders.
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