What Is Forex Affiliates Program?
Forex Affiliation is a type of a marketing program where a person refers other people to a certain business in return for some kind of a reward (typically financial). This is usually done through recommendations, banners, links or any other type of marketing collateral. In Forex, affiliates refer potential traders to online Forex brokers. The referral works when a potential trader clicks a link or a banner provided by an affiliate and later on registers to trade with the broker. That trader is ear marked as a client of that Forex affiliate through whose referral link he arrived.
Forex Introducing Broker or Forex IB
Affiliate is an Internet type of a Forex Introducing Broker (Forex IB). It’s being a Forex IB but without typically having an office or sales staff. Internet Forex Affiliates refer their clients through websites. Becoming an affiliate is much simpler and typically Forex Affiliates are private individuals with internet properties and large traffic as opposed to IBs who are mostly organized as companies and are more institutionalized. Becoming an affiliate for the best affiliate forex brokers is very easy and can take less than 5 minutes.
How does the Forex Affiliate referral link look like
Typically, you’ll be able to see a short line of code right after the Forex broker’s domain name. For instance, if someone referred clients to ForexSQ, their referral link might look like this: https://www.forexsq.com/landing.php?id=5. This tells you that who ever is placing this link works as an affiliate.
Types of Forex Affiliate Compensation Methods
As said, Forex Affiliates are compensated for their referral (why else would they place the best affiliate forex brokers links on their websites, right?). This compensation can take various forms:
Affiliate much like and Introducing Brokers, are compensated for a volume their clients make. For instance, an affiliate gets 1 pip for every standard lot his client trades. Industry standard is 0.5-2 pips depends on the broker (market maker or ECN, competitive spreads or not) and currency pairs (majors or minors – minors tend to have wider spreads as they are less traded).
Forex CPA Offers
this stands for Cost Per Acquisition. This type of compensation is paid when a referred client either signs up for a Live account or makes a deposit (nuances are very important here). Industry standard is $150-250 per client and can go considerably higher depending on the deposit size.
This stands for Cost Per Lead. The affiliate is compensated when a referred trader provides his details on broker’s landing page (marketing page which offers something to the trader while collecting basic details like name, phone and email address). Some brokers offer this if a referred trader signs for a demo accounts as well.
Forex Revenue sharing
This is the most ‘interesting’ type of a compensation. Market makers profit not only from spread but also from some of their clients losses (not every $ lost is a $ in broker’s bank account!) and some affiliate programs go as far as offering part of their ‘revenues’ from clients. This typically stands for part of the losses.
And of course there is a Hybrid type of commission which involves couple of the aforementioned options. For instance, an affiliate can get a Forex Affiliate CPA + Revenue sharing.
Another important type of program is called 2nd tier (referring a trader is consider 1st tier) – this basically means that if you are a Forex Affiliate and you refer a Forex Affiliate to the Forex Affiliate Program you get a share of that Affiliate’s revenues (can be a fixed amount or percent of revenues). Honestly, don’t count on that too much: it’s hard to track this and brokers don’t really like paying twice.
What Are Forex Affiliates Programs Conclusion
For more information about currency trading brokers visit TopForexBrokers.com forex brokers comparison website, Tip ForexSQ.com foreign exchange trading experts please by share this article about What is Forex Affiliates programs.