November 22, 2022

CFD ETF: How Broker Affiliates Can Profit

CFD ETF How Broker Affiliates Can Profit!

In a challenging economy, competent broker affiliates look beyond the best-known assets like forex, stocks, and commodities. They expand their broker affiliate marketing campaigns to include more diverse assets like CFD ETFs and earn high commissions from niche trading interests. When you add ETF traders to your usual forex traffic, you’ve just taken a significant step to a six-figure income!

What are CFD ETFs?

One of the problems with online trading – both for broker affiliates and new traders – is the jargon. Financial traders and brokers love to use slang and abbreviations, which can confuse newcomers. A CFD ETF is an exchange-traded fund traded as a contract for difference. 

  • CFD = Contract for Difference
  • ETF = Exchange Traded Fund

CFD Contract for Difference

A contract for difference is a quick and convenient online trade form that offers traders high-risk/high-return outcomes. When you open a CFD on any tradeable asset, e.g., a stock like Apple or a commodity like Gold, you don’t buy the asset itself. You’re investing in the market performance of the asset (either up or down). 

If you correctly predict the market performance of the asset, your profit will be the difference between the opening and closing price. You can open CFD positions on assets you expect to gain in value and on assets that you expect to fall in value. Several advantages make CFD trading popular:

  • You can potentially make high profits in any market conditions.
  • Trading is automated and underpinned by a suite of risk management tools.
  • Most online brokers offer up to X400 leverage, depending on the asset class.
  • Any losses are limited to specific trades. You cannot lose more than you invest. 

ETF Exchange Traded Fund

An exchange-traded fund or ETF is a basket of separate underlying assets like stocks, bonds, or commodities. The ETF tracks the combined performance of these assets and is traded on the markets. An ETF rises and falls in value according to trader sentiment, the performance of its underlying assets, and broader market forces. 

ETFs trade like stocks and are often an attractive proposition for online stock traders. ETFs are as easy to trade as stocks but offer a level of diversification comparable to mutual funds. Brokers like AvaTrade offer a range of ETFs as CFDs with 20:1 leverage. 

How to do Broker Affiliates Profit from ETFs?

The goal of broker affiliates is to profit whenever they promote an online broker, financial asset, financial event, or trading platform. Broker affiliates can profit from CFD ETFs by promoting them on social media and their websites. The abbreviation “CFD ETF” is ideal for short and intriguing social media posts and creatives. 

A niche asset like CFD ETFs also has excellent blogging and guest posting potential. ETFs aren’t widely known outside professional trading circles and have plenty of novelty value. They are also easy to understand and trade. When promoting ETFs, aim to publish as many guest posts as possible and focus on obtaining high-quality backlinks. Website owners and managers will snap up any well-written articles about how to trade ETFs online.

When you promote CFD ETFs, you need to be clear about what they are, what ETFs are, and the potential advantages they bring to traders. It’s essential to build trust from the get-go, and trader education is one of the best ways to do that. The more you invest in top-quality trader educational content (including films for YouTube and other social platforms), the higher your conversion rates are likely to be. 

Who Trades Exchange Traded Funds?

When you’re planning your marketing campaigns, it pays to know what kind of traffic to target. You’ll optimize your campaigns and reinforce success, but you’ll also need some starting points. Generally speaking, anybody who trades stocks (or is considering becoming an online stock trader) will be interested in ETFs. Bond traders may also be receptive to ETF-based marketing campaigns and creatives. 

It’s important to remember that not all online stock traders are the same. Even within the stock trading demographic, people have very different financial goals and risk appetite. ETFs are likely to appeal to more cautious traders who want to open long-term positions and to more risk-orientated traders who also want lower volatility assets as a hedge. 

Although forex and crypto traders are less likely to be interested in ETFs, you can pique their interest. There are some massive currency and crypto ETFs like UUP and FXE. Try to start online debates on social media and in any forums where you have a presence. If there’s unpredictable volatility in the currency markets, even the most aggressive traders may consider diversifying into non-currency ETFs as a hedge. 

Read more about forex, CFDs, and stocks in our related blog post

Will CFD ETFs be a Strong Asset in 2023?

We have to be extremely cautious about making financial predictions. The global situation is complex, and we will likely face significant economic challenges in 2023. These include continuing inflation, US, UK, and EU recessions, a continuing commodities crisis, and possible food shortages. The war in Ukraine currently shows no signs of ending and can affect the markets at any moment. 

If the markets are as challenging as some analysts predict, assets like ETFs may take on new importance in 2023. Traders are typically more receptive to different asset classes during bear markets. Smart traders start to think outside the box when the economy is depressed and look for new income streams. You need to be the broker affiliate who presents those new options and provides accessible trading tutorials and guides. 

The Advantage of ETFs in a Difficult Market

A significant advantage of ETFs is that if one underlying asset suddenly declines, the drop in value may be balanced out by an above-average performance by other assets in the fund. There is a possibility that an ETF will self-hedge and avoid reactive falls. Traders are still vulnerable if an entire market suddenly declines, but not if a single stock or commodity plunges. 

Broker affiliates need to promote ETFs as potentially stable assets (at least when compared to volatile stocks and commodities) that can yield steady returns. Even during the worst recessions – and there’s no guarantee that we’ll see that in 2023 – some assets remain profitable and may even gain value. Skilled broker affiliates can profit in any market condition. It would help if you understood trader expectations and the energy and initiative to promote potential opportunities. 

Read our related blog post about how to utilize a bear market

What Commission Plans Deliver the Highest Broker Affiliates Profit?

When promoting CFD ETF trading, you must consider your choice of commission plan carefully. Broker affiliates are often divided over the merits of one-time CPA payments for new traders or long-term passive income streams via RevShare deals. If you’re working with a top-quality partner program, you’ll always be able to renegotiate your commission structure, but it pays to start with the right plan. 

Your choice of affiliate commission deal will depend on what affiliate partner you are, e.g., an online affiliate or an introducing broker. It will also depend on the quality of your traffic. It makes sense to consider a Hybrid CPA or RevShare deal if you can attract severe and high-value online traders. Many broker affiliates believe stock traders (and, by extension, ETF traders) to be ‘stayers’ or long-term traders. 

There’s a significant element of generalization when we consider trader demographics, but people who want to trade stocks online tend to be older and more mature. The gender balance is more evenly divided, and stock traders are less aggressive and impulsive than crypto, forex traders, and some commodity traders. 

If you can target long-term stock and ETF traders who have high trading budgets, they can become a lucrative passive income stream via a RevShare deal. Most new broker affiliates start with basic CPA deals. Effective broker affiliates profit rapidly – usually in the first month – and have plenty of opportunities to analyze their results and understand how their traffic performs. 

Promote CFD ETFs with AvaPartner

AvaTrade provides a range of CFD ETFs and some outstanding trading platforms. When you work with the partner program AvaPartner, you can negotiate a tailored commission deal with high payments. AvaPartner is one of the world’s most experienced and successful partner programs and has already paid out over a quarter of a billion dollars to its broker affiliate partners!

When you work with AvaPartner, they’ll be happy to provide you with free high-converting marketing materials. If you want to promote CFD ETFs, let them know and ask for some creatives or content. You can also promote the broker’s forex, cryptos, bonds, commodities, stocks, and other popular CFD assets. 

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