How to Choose the Best Forex Affiliate Program
Reading time: 8 minutes
You have no doubt heard the expression, "let the cat out of the bag". What you might not know is that it goes back hundreds of years to the markets of Medieval England, when unscrupulous traders would sell a customer a pig, but actually put a cat into the sack before they handed it over. If you didn't discover the trick soon enough - if you didn't open up the bag, let out the cat, and demand your pig - you were left saddled with your useless purchase.
In today's digital age, it's a lot harder to metaphorically look inside the sack and check you have what you signed up for. Worse, when it comes to something with the profit-generating potential of FX affiliate programs, there are plenty of shady schemes out there where "great deals" turn out to very different to what you expected.
In this article, we'll run through the most important factors to look out for when finding the best forex affiliate program and choosing the right one for you, helping you to see through any disappointing deals offered by the traders of today.
How Large is the Forex Affiliate Commission?
Let's start with the most obvious question: is it likely to make you decent money? After all, without this covered, everything else is a moot point. As we've talked about in previous articles, there are several different types of forex broker affiliate program and each of these come with their own commission types and payment structures.
Generally speaking, though, you can expect to earn up to $600 in commission for each new person you refer to the broker's site, depending on how large a deposit they put down and how many lots they trade. Top forex affiliate programs will also give you the option to earn ongoing commissions tied to how much these referrals trade going forward - and may even pay you a commission when people you referred go on to refer others in turn.
Learn more about Admiral Markets' Forex Affiliate program and commission structure here.
How Transparent Is the Affiliate Process?
As with any business model, the success of affiliate and referral programs has led to a crowded market, with many sites and brokers clamouring to take part of establish their own versions. Unfortunately, some of these operators are less trustworthy than you might hope.
Make sure that any forex affiliate program you consider is totally transparent and above board in the way they report trades and calculate payments. You should be able to see precisely how your commission is worked out and keep an eye on how much you're earning as you go.
How Easy Is It to Onboard New Signups?
Any pain points in the onboarding and sign up process will create more work for you - and will ultimately cost you business if your recruits keep putting it off or giving up halfway through. Take a good look at how the broker's system and customer interface works before you choose to work with them. The whole process should be as smooth, straightforward and user-friendly as possible.
How Good Is the Forex Broker's Reputation?
Partnering with a reputable broker is essential. The broker you partner with must be well respected and fully regulated, on the right side of all rules, laws and other compliance considerations. While it can be difficult to figure out how well-regarded and dependable a broker is by looking at their website, there are a few reliable indicators.
Firstly, do they clearly state on their website which regulatory bodies they're approved by? Admiral Markets Group investment firms, for example, are fully regulated by the relevant authorities:
- Admiral Markets UK Ltd is authorised and regulated by the Financial Conduct Authority (FCA)
- Admiral Markets AS is licensed and authorised by the Estonian Financial Supervision Authority (EFSA)
- Admiral Markets Cyprus Ltd is authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC)
- Admiral Markets Pty Ltd holds an Australian Financial Services Licence (AFSL) to carry on financial services business in Australia
Is it easy to find information on where they're registered and to get in touch with them with questions? Have they won industry awards? Again, we're lucky to have won multiple awards across the regions we operate in, for our Forex and CFD trading offering. And can you find any coverage of them in industry news articles?
Importantly: do they have a presence across many different countries? Not only does this tell you how well established the company is, it also means they understand and adhere to country-specific laws of many different regions, which should take another load off your mind.
Will the Forex Broker Help You with Marketing?
The success of your foray into forex affiliate programs relies on you bringing plenty of people to the site who want to put down deposits and start trading. From your point of view, this is primarily a marketing challenge. The chances are, you are not a marketer by trade - perhaps you specialise in financial advice, forex trading, or similar. Even if you are completely marketing savvy, doing all of this by yourself could add a substantial workload and lead to diminishing returns.
The best forex brokers know this. They will do everything they can to make your role in the partnership as smooth as possible, providing extensive marketing materials and templates that you can simply pass on to interested partners.
Depending on the type of partnership, this could include social media headers, website banners and widgets, or draft emails and supporting literature to share with your network. Don't forget to check out exactly what they are offering you before you start, to make sure it's right for your situation and partnership.
How Will You Keep Track of Your ROI as a Forex Affiliate?
A robust and easy-to-use partner platform isn't just important for transparency, it's also a vital tool in helping you monitor the performance of your forex affiliate marketing, the quality of the signups you're bringing to the platform, and your return on investment.
Look for a partner portal with 24/7 access to your dashboard, which provides you with detailed reports, statistics and analytics. You should be able to analyse the effectiveness of your marketing activities in depth, calculating and comparing your ROI. You can then continually hone your strategy for better and better results.
What Kind of Support is on Offer with Forex Affiliate Programs?
No matter how great the system, the platform or the portal, there is always the chance that something will go wrong, or that you (or your sign ups) will have questions. It's so important that the broker appreciates this and gives you an easy way to contact them with any issues or concerns. The best programs include comprehensive support from a helpful, knowledgeable, multilingual team. Always check that you can get the help you need in the language that you and your sign-ups require!
Is It a Top Forex Trading Platform?
It sounds obvious, but very often this crucial detail gets lost as you wade through the nitty-gritty of different affiliate programs and offers. It simply does not matter how much commission is on offer if the product is unsellable. You want people to jump at the chance to sign up to this trading platform and to have the confidence to lay down sizeable trades. That just won't be possible if it's not a top-quality trading platform.
Firstly, the broker should offer a broad range of financial instruments, including CFDs on currency pairs, shares, indices, commodities, ETFs, bonds and cryptocurrencies. It should do this using a world-class trading platform, allowing users to manage multi-asset trades and portfolios from any device they like. The broker should be properly regulated and licensed, well-recognised for excellence, with a truly global presence.
Final Thoughts: Will the Affiliate Program Work for You?
Selecting a forex affiliate program isn't just about working out which one is "best", it's about working out which one is best for you. Make sure you're clear on exactly how the program in question works - for example, if it's a forex referral or introduction scheme or a classic forex affiliate program. Even within these broad categories, you'll find huge amount of choice and variation from broker to broker.
The very best forex brokers don't offer a single, one-size-fits-all affiliate program with a rigid commission structure, but rather a range of options and payment structures tailored to your circumstances. In short, don't be afraid to be discerning and critical about the kind of forex affiliate program you want to work with, or the kind of commission structure that works for you.
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.