August 25, 2022

How Broker Affiliates can Profit from the Commodity Crisis ?

Commodity trading- broker affiliate profits

Commodities are in the news daily, and many financial analysts are already talking about a 2022 commodity crisis. Commodities account for a vast proportion of daily trading volume across the global markets. They are the lifeblood of national economies and a valuable source of income for any broker affiliate who can target online commodity traders.

This blog post will explore whether the current market situation with commodity prices is a global commodity crisis. We’ll look at the best way to profit from the current commodity market and bring new traders to online brokers. We’ll also offer great tips on how any stock trading affiliate can easily adjust their marketing to focus on potential commodity traders.

What Should Broker Affiliates Know about Commodities?

Commodities are any raw material or refined product that can be bought and sold. The asset class includes well-known commodities like gold, oil, natural gas, and food staples like corn, wheat, and coffee. Most commodities are mundane items that most people take for granted. Outside the field of energies and precious metals, commodity trading isn’t as high profile as forex, cryptos, and stocks.

  • Hard commodities include precious metals like gold, silver, and platinum and energies like oil and natural gas.
  • Soft commodities include perishable agricultural products like sugar, corn, coffee, and wheat.

Commodities are subject to supply, demand, and trader sentiment, just like any other financial asset. Prices are susceptible to weather (crop harvests), government stockpiling, production issues, and geopolitical events like wars. Gold and oil prices are traditionally highly volatile, and governments manipulate supply and demand to control prices.

A stable supply of affordable commodities is essential for economic growth. Changes to commodity prices have a knock-on effect across broader markets, including forex and stocks. Even major currencies like the Canadian and Australian dollars are closely linked to the performance of key commodities. Successful forex and stock trading affiliates should always focus on commodity price trends.

The commodity market isn’t a niche or a low-profit zone for broker affiliates. It is a huge (and hugely important) financial market that underpins the entire global economy. Oil and natural gas trading alone generates revenues in trillions of dollars. Too many affiliates miss out on high commissions by failing to promote online commodity trading effectively. If you’re already making money as a stock trading affiliate, you have all the skills to make money as a commodity affiliate!

Read our related post on how to promote CFD commodity trading

The 2022 Commodity Crisis and Broker Affiliates

Commodity prices are susceptible to economic factors and world events. The first half of 2022 has seen a combination of unusual events driving commodity prices. The first is post-COVID-19 inflation figures. Higher inflation traditionally increases commodity prices, and 2022 is no exception.

The second factor influencing commodity prices is the war in Ukraine and the emerging energy crisis. Ukraine is a significant exporter of soft commodities, and the war is already disrupting global supplies of food staples. Much of the EU – including its largest economy Germany – is highly dependent on natural gas from Russia. Winter supplies are no longer guaranteed,

This kind of economic uncertainty also drives up the prices of precious metals as major investors seek hedges. Gold is currently trading at around $1,750 an ounce. Fed interest rate rises in Q3 and Q4 could push it higher. Oil peaked at $125 a barrel in June and is now trading around the $100 level. Natural gas is at a 14-year high, jumping to the $10 line for the first time since 2008. 

Commodities are volatile, and their likely performance for the second half of 2022 is hard to predict. China is a major importer of commodities, but demand seems to be slowing. Some analysts assess the chances of a Eurozone recession at 60% and predict a 30% likelihood of the US and UK experiencing a recession. Many currently high commodity prices could fall in the run-up to 2023. 

Read our related post about how to benefit from supply fears

The Good News for Broker Affiliates in 2022

The excellent news for broker affiliates is that commodities will be in the news. They are directly connected to the cost of living issues that are front-page news worldwide. Fundamental issues like how much it costs to fill your car with fuel, the price of a loaf of bread, or whether you can afford to heat your home this winter are all commodity-related questions.

Whenever commodities (or other financial assets) generate clickbait news headlines, broker affiliates have potentially profitable marketing opportunities. A great example is something as simple as the price of coffee and the price of chocolate. Coffee beans and cocoa solids (the core ingredient of chocolate) are commodities. Their manufacturing and shipping are affected by the price of various energies, while the relative strengths of major currencies also influence Import costs.

People with minimal interest or understanding of the market price of gold, corn, and wheat futures, or the price of oil, will pay close attention when the price of gas or petrol rises at the forecourt. If consumers suddenly can’t afford their favorite morning latte or afternoon chocolate bar, complaints will be trending on social media 2 minutes later. Intelligent and compelling social media posts about coffee and chocolate can place affiliate links in front of people who’d never previously considered online trading.

Very few financial assets or instruments are as relevant to ordinary people as commodities. You’ll connect strongly with potential first-time traders if you can bridge the knowledge gap with your broker affiliate marketing campaigns and creative content. Suppose you want to explore this affiliate marketing strategy. In that case, it’s vital to invest in high-quality educational content that explains the basics of commodity trading, CFD commodity trading, and how to trade online with brokers like AvaTrade.

Promote Online Commodity Trading

Any good online broker offers traders a selection of commodity CFDs. AvaTrade has a full selection of major energies, precious metals, and agricultural commodities. AvaTrade is mainly known as an online forex stock trading broker. It’s highly popular with all kinds of online traders.

Stock trading affiliates can easily interest stock traders in AvaTrade’s CFD commodity assets. A short post on how the emerging energy crisis boosts BHP group stocks could pique trader interest. Several other public companies are leaders in energy-intensive sectors. Engaging content about the pros and cons of hedging with gold or diversifying with energies and agriculture can also bring good results.

5 Key Advantages of Promoting AvaTrade

You have five key advantages when promoting online commodity trading at AvaTrade (either targeting new traders or people who currently trade other assets). 

  1. AvaTrade offers simple and convenient CFD commodity trading. Traders can open potentially profitable commodity positions without actually buying barrels of oil or gold bullion etc. Mention AvaTrade’s 200:1 leverage and competitive spreads on commodities in your marketing materials.
  2. AvaTrade is a regulated broker. Online traders have high protection and access to the world’s most traded commodities in real-time and at current market prices. You need to explain the benefits of fair online trading with a regulated broker in all your marketing materials.
  3. AvaTrade has some of the world’s most advanced fintech. This includes trading platforms like MT4 and MT5. New commodity traders can learn from experienced traders by copying and following them on the proprietary AvaSocial platform.
  4. AvaTrade is an established online broker with an excellent reputation. It already has the credibility and public recognition to function as a high-converting brand. When competing for traffic, you want your affiliate links to get the clicks.
  5. AvaPartner is a superbly professional partner program with years of experience supporting broker and stock trading affiliates. AvaPartner offers genuinely flexible commission deals and has already paid over $250 million in commissions.

Earn High Commissions from Commodity Trading in 2022

The 2022 commodities market is volatile and unpredictable. These are precisely the market conditions that can create trading opportunities. When major commodities like gold, oil, and gas are volatile, they become increasingly attractive to traders with an appetite for high-risk/high-return investments.

Q3 and Q4 2022 could be the ideal time to target forex and crypto traders and online stock traders who focus on volatile stocks. They may be unusually receptive to the idea of CFD commodity trading. If you can attract experienced traders interested in serious trading volumes, think about negotiating Hybrid CPA and RevShare deals with AvaPartner.

You can expect high conversion rates if you build your content and marketing campaigns around current news events and realities that affect people’s daily lives. Online commodities trading can be as profitable as promoting forex or cryptos, and partner programs are ready to pay high commissions for commodities traders.

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