Want to step into the forex market and earn money, but not as a trader? You’ve come to the right place. Becoming a forex trading partner is one of the best ways to turn your reach into rewards. That being said, you can explore two pathways: affiliate trading and introducing broker (IB) partnership.
Here’s a detailed explanation of both pathways and their benefits, so you can make an informed choice:
What is an Affiliate Trading Partnership?
It is a partnership between an individual or company (affiliate) and a trading platform (broker). As an affiliate, you’re given a unique trackable link to incorporate into your website content, blogs, and social media posts.
Any visitors who perform an action using your unique link become your referral. The required action could be simply viewing a broker’s services or opening an account with them.
The more referrals you bring, the greater your commission. Forex brokers offer affiliates one of the three commission models:
Cost Per Action (CPA) – As the name indicates, you earn a one-time fixed commission any time you bring a referral.
Revenue Share (RevShare) – You get a percentage of the revenue generated by your referral. The percentage can range between 5% and 30%, depending on your engagement rates and visitors.
Hybrid – You will earn a small fixed payment for bringing a client, and then get additional revenue through a percentage of the client’s trading volume.
Why Choose Affiliate Trading Partnership
Becoming an affiliate forex trading partner will offer the following benefits:
- Quick and easy setup
- Passive earning potential
- Low commitment, low maintenance
- Flexible commission models
Affiliate partnership is a good idea if:
- You’re a content creator, blogger, or social media influencer
- You have access to a large audience interested in finance or trading
- You don’t have time for client relationship building
What is an Introducing Broker (IB) Partnership
On the other hand, we have the Introducing Broker (IB) partnership. In this model, individuals or businesses earn commissions by referring clients to a broker for trading and account management services.
Think of an Introducing Broker (IB) as a middleman, focusing on building client relationships and generating new business. The IB agreement is a legal contract that outlines the key terms of your relationship with a broker, which includes:
- Commission structure
- Key responsibilities
- Regulatory compliance
- Termination guidelines
Why Choose IB
An IB forex partnership offers numerous benefits, including:
- Higher long-term earning potential
- Educational support from the broker
- More control and influence
- Long-term client relationships
An IB partnership is right for you if:
- You enjoy client retention
- You want to run a signal service one day
- You’re knowledgeable about forex and can answer client queries
- You prefer a more involved, hands-on partnership
- You have local connections with traders
The Bottom Line
Both affiliate trading and Introducing Broker (IB) partnerships have pros and cons. Consider the scale of your reach, long-term financial goals, and personal interests to choose the right option. Irrespective of your chosen partnership model, work with a reliable broker to ensure transparency and compliance.
