August 22, 2022

How to Make Money as a Forex Affiliate when the Euro is Falling?

Falling Euro

Many forex affiliates are worried that a falling euro and difficult 2022 market conditions will affect their ability to make money. The global forex markets are thriving. There are plenty of good opportunities to earn high commissions from your broker partner program. This blog post explains how to make money as a forex affiliate, regardless of how the euro or other currencies are currently performing. 

How Does a Low Euro Affect Forex Affiliates?

A low euro doesn’t affect forex affiliates directly. Global forex markets operate 24 hours a day, at least five days a week. Investors and forex traders are generating daily trading volumes that run into trillions of dollars. The euro may be at its lowest against the US dollar since 2005, but plenty of skilled forex traders are still profiting from it!

Suppose your goal is to make money as a forex affiliate. In that case, you’ll quickly realize that the euro is just one of the forex majors (the major national currencies that account for the bulk of international forex trading).

Seven major forex currency pairs

  1. EUR/USD (Euro / United States Dollar)
  2. USD/JPY (United States Dollar /Japanese Yen)
  3. GBP/USD (British Pound / United States Dollar)
  4. USD/CAD (The United States Dollar / Canadian Dollar)
  5. USD/CHF ( The United States Dollar / Swiss Franc)
  6. AUD/USD ( Australian Dollar / United States Dollar)
  7. NZD/USD (New Zealand Dollar / United States Dollar)

These seven major forex pairs don’t include every major national currency or forex pair widely traded. It’s not intended as a definitive list. It does give a good insight into trader priorities and how the forex markets work. You can immediately see that the seven majors list is dominated by the US dollar (USD) – not the euro. 

The Forex Affiliates Guide to the Euro

The euro is the European Union’s common currency and the official national currency of 19 of the EU’s member states. Collectively, they form the Eurozone and include three G7 economies: Germany, France, and Italy. The euro is also the world’s second most widely held reserve currency after the US dollar. It’s a hugely important currency but ultimately just one component of the world’s forex markets. 

Euro – EUR – €

  • Official currency of 19 Eurozone nations
  • Unofficial currency of 4 small nations and microstates
  • The euro is the daily currency for at least 350 million people

Since the euro’s launch as cash on the 1st January 2002, it has survived various financial crises and experienced several crashes and highs. In the summer of 2022, the euro plummeted to achieve effective parity with the US dollar. In 2015 it crashed against the Swiss franc. In 2000, while the euro was an accounting currency, it fell below parity with the US dollar to trade at 0.84.

The euro is a major currency, and like all currencies, its value is subject to economic forces and trader sentiment. Occasionally it will crash dramatically and then rally. There will be periods of relative strength against other majors and occasional periods of market dominance. If there is some volatility, the euro will attract traders, and forex affiliates can make money. 

Forex Affiliate Marketing Campaigns and the Euro

The only way that a low or plunging euro can affect forex affiliates is if dramatic headlines and pessimistic news reports affect public sentiment. Your goal as an online forex affiliate is to bring forex traders to online brokers. If the public has a negative perception of the forex markets, you’ll need to be more creative when you devise your affiliate marketing campaigns and prepare your content. 

Whenever the declining euro is in the news, the reports usually include economic analysis and speculation that dwells on high inflation rates (8%+ average across the EU and as high as 20% in extreme cases). News articles usually also mention the possibility of a winter 2022 energy crisis, critical material shortages, and the prospect of a significant Eurozone recession. 

This negative outlook can easily discourage potential forex traders. When you plan your forex affiliate campaigns, you must design high-converting creatives puncturing the negative bubble. There are several ways to cut through negative trader sentiment. The most straightforward strategy is to focus on other assets. If the euro is dominating the news, or your target traffic lives in the Eurozone, you’ll need a more subtle approach. 

Promote Trending Assets as a Forex Affiliate

Even if your affiliate sites and social media accounts are geared towards forex traffic, you should constantly test how your traffic responds to other forms of online trading. The easiest place to start is with cryptos. Cryptocurrencies perform like forex pairs and attract the same type of traders. They are frequently in the news and can trend virally. 

Try adding crypto tabs to your website and regularly upload SEO-optimized crypto content. 

Social media is ideal for promoting online crypto trading, and you can start adding posts and creatives whenever you notice cryptos trending. The same applies to other forex majors like the USD, GBP, CHF, etc. A good tip is to watch less well-known currencies that may have a novelty or special interest value. Successful affiliates always have one eye open for any story or concept that can go viral. 

Promote Stocks and Commodities as a Forex Affiliate

One of the advantages of regulated online brokers like AvaTrade is that they have a massive asset index. People who sign up to trade online forex also have immediate access to a range of CFDs. Assets include cryptos stocks, commodities, indices, ETFs, bonds, and options. Regardless of how the euro (or any other currency) is performing, you can make money promoting these assets. 

There is a core of brands and companies with massive global recognition – to the point of being household names. Major companies may also have niche appeal to your target traffic. These companies are frequently in the news for new product launches or mergers, acquisitions, and takeovers. 

An excellent example from 2022 includes Elon Musk’s attempt to acquire Twitter. Both Tesla and Twitter are major stocks. The problematic Twitter deal was front page news for a month. Stock trading affiliates launched a blizzard of high converting marketing materials to attract new traders. Partner programs like Avapartner paid out significant commissions for new online stock traders. 

Precious metals, energies, and food staples will likely be increasingly newsworthy during the autumn and winter. The second half of 2022 could be an excellent time for forex affiliates to make money promoting commodities. Forex traders are often attracted to dynamic assets like gold and oil, particularly if they are highly volatile. 
Read our related blog post about forex vs CFDs and stock and option trading

Promote the Falling Euro as a Profitable Asset

If you want to focus on promoting forex, you can spin bearish assets as potential money makers for online traders. It may sound counterintuitive, but there are forex and options traders who specialize in making money from currencies trending downwards. Most forex affiliates completely overlook options trading as a revenue stream. You can earn high commissions by referring options traders to online forex brokers. AvaTrade has a superb options trading platform called AvaOptions. 

You need to follow a few basic rules to promote the falling euro as a potentially profitable asset. The first requirement is that you never promise or imply that traders will make the euro. You can explain that opportunities exist and that other traders use specific strategies and techniques to try and profit from down-trending assets. 

  1. Options trading on the euro
  2. Sell and put options
  3. Whipsaw trading and day trading

Options trading allows traders to open an options contract on a specific asset. The asset price when the contract is opened is called the strike price. It remains fixed for the agreed duration of the contract. The options trader attempts to profit by reselling the asset at a moment when the strike price is superior to the current market price. 

Read our related blog post about promoting AvaOptions

Sell and put options allow CFD traders to attempt to profit from assets that they expect to fall in value. They are speculating on a downward trend, aiming to profit from the difference between an asset’s higher value at the start and its value at the end. 

Whipsaw trading and day trading are often popular when a broadly trending asset experiences periods of volatility within its ranges. For example, the euro may fall towards parity with the US dollar but still fluctuates in value with temporary upturns. Whipsaw and day traders attempt to profit by opening trades covering these minor short-term trend reversals.

Make Money as a Forex Affiliate

To make money as a forex affiliate, you must not waste time waiting for the ‘perfect’ market conditions. If you’re adaptable and willing to learn, you can earn high commissions in any market conditions. The most important thing is to sign up with a leading partner program and start putting your websites and social media accounts to work for you! 

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