Affiliate marketing is a successful and interesting field entailing solid partnerships and relationships as well as active participants. In fact, what makes it unique is that it doesn’t only involve promoting a broker’s products and services, but rather it has a closer connection with the CFD affiliate whom clients trust.
Many people are cautious when it comes to forex trading and trusting an online broker. However, when an influencer in social media or an acquaintance who is a CFD affiliate vouches for a product and promotes the advantages of CFD trading, then registering an account with a broker becomes easier.
Read on to find out exactly what a CFD affiliate marketer does as well as why you should become one.
What does an affiliate marketer do?
An affiliate marketer is the person who earns a commission for advertising and promoting another company’s or individual’s products and services. Affiliates conduct research to find the niche they are interested in. For example, CFD affiliates would normally choose CFD trading as their niche.
Then, they promote the products of a CFD broker, let’s say, on their website, blog or any other medium and earn a pre-determined commission for every registration or sale the client makes. The broker can easily track the source of the purchase through unique affiliate links which are placed on the affiliate’s platform.
What is CFD trading?
Unlike eCommerce affiliates, broker, forex or CFD affiliates are in a more advantageous position in that they simply rely on the referrals’ trades rather than on waiting for new clients to make a purchase. But you must be wondering why is the CFD group so unique and why does it differ from normal affiliate programs?
When it comes to finance, CFDs, also referred to as contracts for difference, are financial contracts between two parties, the buyer and the seller, that pay the difference in the settled price between the open and closing trades. In other words, the buyer pays the seller the difference between the current value of a product and its value at contract time.
Why become a CFD affiliate?
CFD trading is a much cheaper alternative since traders do not actually buy the stock the CFD represents. What they actually do is trade with lots of leverage because they only use a portion of the total cost compared to if they had invested in actual stocks.
Think of CFDs as an ice cream. They are available in multiple ‘types’, so instead of trading stocks directly, you can purchase its CFD version or trade indices, commodities or other assets without necessarily owning them.
As a result, being a CFD affiliate means that you can offer your referrals the chance to access the financial markets and trade various markets via one trading product. This will be your niche and your opportunity to provide multiple options at the same time.
Forex is popular. Nevertheless, it only gives clients access to a single market, the foreign currency market. Instead, with CFDs, the sky is the limit and your referrals can trade forex and other asset classes through CFDs.
Disclaimer: This information is not considered as investment advice or an investment recommendation, but is instead a marketing communication