Anyone connected with the forex industry will be aware that some of the most well-known forex brokers, including multi-award winning broker HYCM, offer affiliate schemes paying rewards in return for website traffic. More specifically, forex brokers will pay for each client an affiliate refers to the company who makes a deposit and starts trading.
Affiliate marketing is a very important aspect of a forex broker’s strategy to reach a wider audience, gain new clients and increase sales. As a result, forex brokers are always keen to acquire new partners to help them bring in new clients.
The commission offered to forex affiliates has become very competitive amongst forex brokers due to the popularity of affiliate marketing. There are many different programs to choose from and plenty of opportunities to earn money.
Affiliate schemes are ideal for those looking to broaden their online business and enhance their earning potential from tapping into the forex industry. The industry has soared in recent years, becoming a very popular and potentially lucrative niche amongst traders. With $1.6 trillion trading volume per day, it is clear how many affiliate marketers generate a good income from online affiliation with best forex brokers.
How Affiliate Programs Work
Affiliate programs work whereby an affiliate refers clients to a forex broker’s website in return for financial rewards. This is usually done through recommendations, banners, links, content and other types of marketing collateral. The referral works when a potential trader clicks on a link or a banner provided by an affiliate who proceeds to register and trade with the broker. That trader is then flagged as a client of the referring forex affiliate. When the client funds his account and starts trading, affiliates will start receiving commissions into their account for the client’s trading activities.
Becoming an affiliate for a forex broker is a straightforward procedure involving an agreement defining the partnership and commission terms signed by both parties.
Forex brokers will provide affiliates with access to a dashboard on their website or personal cabinet where they can access statistics and reports such as commissions, conversion rates, top performing ads, client lists, trading activity and deposits. A broker will also provide a personal affiliate account manager to assist with an affiliate’s requirements.
Types of Forex Affiliate Compensation
Affiliate commission can take several forms:
Cost Per Acquisition (CPA) is a type of commission paid when a referred client deposits the minimum deposit amount and meets the broker’s agreed minimum client activity requirements.
Cost Per Lead (CPL) is where an affiliate is compensated when a referred trader provides his details on a broker’s landing page such as name, phone and email address.
Revenue Share plans allow an affiliate to earn a given percentage on the net revenue for the lifetime of their clients. The percentage of the net revenue generated will depend on the total revenue each month.
Lot Rebate payment models are where commission is received at a fixed rate for each lot a client trades. The structure is scalable depending on the accumulated net deposits of active clients.
Hybrid commissions are also available with some brokers involving a combination of the aforementioned options, usually CPA + Revenue Share.
Sub- Affiliate schemes allow affiliates to earn extra income by referring other affiliates to the broker’s affiliate program. This will earn them a share of their net revenue from their referred clients.
Points to Consider Before Becoming an Affiliate
If you are thinking of becoming an affiliate, it is important to assess the competency of your chosen broker’s affiliate scheme by visiting their website to see what programs are on offer and to get an understanding on how their commission plans work.
It is worth examining their history, looking at how open and transparent they are and how competitive their offering is in terms of types of account and spreads. Multilingual customer support availability is another aspect that your clients will be checking for themselves. It is also advisable to find out how well-known the broker is as larger, more established brokers are likely to offer a good choice of commission plans and an altogether more attractive proposition.
Affiliate back office and reporting is a necessity too so, as we saw earlier, you need to check whether the broker provides access to a dashboard or a personal cabinet allowing you to track performance real time so you can quickly establish what works for you and what doesn’t.
Finally, you should check how easy it is for your clients to deposit money via different payment methods and how easily and frequently you, as an affiliate, can withdraw your commission.
HYCM’s popular affiliate program, HY Affiliates, offers prospective partners access to one of the leading and most trusted affiliate programs in the industry, specifically designed to suit your needs and requirements while maximising your earning-potential.
Its recently updated version is mobile, tablet and desktop responsive and is accessible at www.hyaffiliates.com.