Forex Affiliate Programs: How to Choose The Best One.
We all seem to have that one friend who is always into the newest ways of making money. In high school, when others were talking about girls and boys, exams, and parties, he was telling you that he is going to invest in the Forex market.
When you were talking about other currencies, you most likely had currency exchange in mind due to the planned foreign trip. For him, trading currencies has always been a way of making money.
But trading currencies isn’t the only way of making money on Forex. Another great opportunity for online entrepreneurs are
Forex affiliate programs. With them, you don’t have to play the game, you have to convince others to join the game and get paid for it.
Forex affiliate programs are one of the evergreen niches of affiliate marketing. Why? Because the Forex market is bigger, older and more stable than the cryptocurrency market or other rapidly emerging markets full of financial novelties. More than that, this market is understandable by an average Joe, a point that should not be neglected.
So, no matter if you are just exploring possibilities to make money online or are already a seasoned affiliate marketer, dive in and discover how you can earn profits with a Forex affiliate program.
What is Forex?
Forex, or foreign exchange market, is a financial market established to trade currencies. Although it’s been mainly designed for banks and other huge legal entities in mind, everyone can trade on it. In fact, you’ve probably already done so when you bought another country’s currency prior to going on vacation there.
Forex does not have any specific geographical location, like the New York Stock Exchange located on Wall Street. It’s a purely digital place that enables currency trading. What’s actually getting people into Forex trading is not purchasing currency for a holiday but rather trading currency in hope for profit.
How do people make money on Forex?
On this market, each currency has a three-letter code assigned to it. For example, the US dollar has the USD code, Euro – EUR, and British Pound – GBP. The value of each currency can be measured only in comparison to other currencies. Typically you see currency pairs, where one currency’s value is being quoted against another.
1 USD = 0.70486391 GBP.
Knowing the currency’s value, one can make money like on any other market: by buying cheap and selling high. To be more precise, there are three main ways of making money on Forex:
currencies derivatives contracts for difference (CFD)
For online entrepreneurs, there’s one additional way of making money: and that is by referring to affiliate programs of various brokers.
Who Are Brokers?
Although we’ve said that anyone can trade on Forex, this doesn’t mean that all people can do this directly. Common folks need a company that acts on their behalf and makes purchases according to provided instructions.
These companies are known as brokers.
Their customers are people that want to trade on Forex, commonly known as traders.
Brokers provide their customers not only with access to the market but also a trading platform, various insights and teaching materials, plus some other monetization options.
To sum up, having a broker is a necessity when one wants to start Forex trading.
How Do Forex Affiliate Programs Work?
Most brokers advertise their services using multiple marketing channels, including affiliate marketing. Forex affiliate marketing works in the same way as affiliate programs of other companies: they reward a Forex affiliate marketer for each new paying trader that signs up for the platform. So it’s in your best interest to work with good brokers, as they’ll be more likely to be selected by future traders.
Selecting a good broker is not easy. But I’ll show you how to recognize one, so you’ll be able to recommend the best forex affiliate program to your visitors.
How You Can Make Money on a Forex Affiliate Program?
There are 4 main commission schemes that are used in forex affiliate marketing:
Revenue share Cost per action Cost per lead Hybrid.
The best one for you depends on the traders you find. Also, the commission scheme used by a given broker may differ between Forex affiliates, as they can sign various agreements. For example, the revenue share model is often used for long-term partnerships in Forex affiliate marketing.
Shorter agreements or ones with unspecified time periods usually use the CPA or CPL models.
What Makes a Good Forex Affiliate Program?
There are a number of factors that you should take into consideration when choosing the best Forex affiliate program for yourself. Let’s go over each one of them.
Good commission rates.
Brokers are often hesitant to reveal their full commission structure and use phrases such as ‘Up to $80 per lead’ without disclosing the lowest earning threshold.
However, after a sign up, the commission structure is revealed, and Forex affiliates can track their earnings from inside the platform.
Most brokers pay for specific actions. It’s usually not just signing up to the platform but rather for topping up their account or earning some money. Be sure to learn what action is desired.
The bottom line is that no matter which Forex affiliate program you select, you will earn more money when you refer more paying customers.
Marketing materials.
Brokers don’t expect you to do everything on your own. In fact, they really want you to succeed and they will go to great lengths to enable you to do that. This includes providing marketing materials such as banners or brochures, and sometimes even whole landing pages.
Good brokers offer you plenty of options to persuade prospective customers to sign in. Some may give you widgets that you can implement on your page. These widgets can show current trends or popular currency pairs exchange rates.
Everything to make your advertising more attractive.
Credibility.
Brokers deal with serious money. For regular folks, the idea of putting their entire life savings into an Internet trading platform is off-putting. You have to convince them that your partner is a reliable company.
To legally operate in a given country, brokers need to be registered in some sort of regulatory body whose jurisdictions cover this country. The more reputable this body is, the more credibility the broker gets.
Demo platform and good customer support.
Your visitors are unlikely to be financial experts. Your job, as an advertiser, will be to reduce the feeling of being pushed straight into deep waters. What may help you is access to the demo account of the trading platform you promote.
Many brokers offer the option of taking a sneak peek at what it’s like to trade currencies. Having this at your disposal can greatly increase sign ups.
It’s the same case with good customer support that can ease the platform adoption for new users.
Additional monetization options.
Trading currencies is usually not the only thing major brokers deal with. Most of them offer their customers an option for CFDs (contracts for difference) or derivatives.
CFDs are an instrument that enables them to increase potential profits without increasing the investment. In short, you make a bet that the price of a given commodity (or currency) changes in a certain way (goes up or down). If you predict correctly, you earn proportionally more than you would have by just trading this commodity or currency.
The downside is that potential losses can also be bigger than the investment. In fact, EU-registered brokers have a disclaimer on their sites that states that 73% of investors lose money on CFDs.
How to Make Money With a Forex Affiliate Program?
Forex brokers offer some basic reporting tools to their affiliates.
