The high and rapid increase in the number of forex brokerages, entering this lucrative market on a daily basis, also means a vast selection of opportunities for those who can and want to act as forex affiliates or forex introducing brokers. If you are one of those individuals or establishments that can and want to offer such marketing services and enable forex brokers to attract new clients through your promotion, then read on to find out some essential tips in order to help you choose the right forex broker to promote.
We understand that the first question you will ask is the level of the CPA or Revenue Share that you stand to receive for referring clients to brokers. However, this factor alone is not enough. On the contrary, it shouldn’t actually rank very high on your check list as a high CPA or Revenue Share alone, is absolutely no guarantee for a successful …partnership.
The choice of the word partnership is not unintentional, because in any collaboration between a forex broker and an affiliate, or introducer, both parties should approach the venture as a true partnership, a common and joint venture that requires an equal level of commitment and transparency from both ends if it is to succeed and be fruitful and equally beneficial. Therefore, be aware of those forex brokers who will lure you with high commissions and then wash their hands off the common goals once the deal is concluded. No matter how high your CPA or revenue share is, if the broker doesn’t live up to expectations in converting traders, then your whole deal will soon prove pointless.
Obviously, another thing to always remember before choosing the forex broker to promote is that you should never buy a pig in a poke. Do your homework well in terms of researching into the broker, both by carefully reviewing their site but also from independent sources if possible. Being a regulated, licensed broker, but not in some dodgy exotic tax haven, could be potentially more appealing for traders, but it is also a form of safety net for affiliates and introducing brokers in case a forex broker decides to shut down and disappear overnight, leaving their associates hanging, giving you the option to resort to a reliable regulatory authority for assistance.
Reading the fine print is also of paramount importance as the devil usually hides in the details. Don’t get overexcited and carried away, signing a deal on an impulse, but rather take the time to carefully go through all the terms and conditions so that you are completely aware of what the agreement entails. Pay particular attention to details such as the minimum commission amount, any limits for withdrawing funds, negative commissions and rollover amounts. Moreover, make sure you have the full picture as to who is supposed to provide support/retention for the traders you refer and also whose responsibility it is to vet the traders.
Another important issue to examine is whether the deal includes specific clauses on inactivity, because some brokers have terms according to which they have the right to terminate and keep your referred client’s commissions if you fail to refer new depositing traders.
Yet another important factor, the importance of which cannot be stressed enough is having a clear picture about what happens when the broker decides to merge/close. Make sure you clarify this with the forex broker you intend to promote, otherwise all your hard work might go down the drain. The new trend in the industry, driven by high competition, are mergers and re-branding and you should make sure that if this occurs your rights will be safeguarded.
In a nutshell, treat this relationship as you would any other important relationship in your life. Make sure you start it on the right foot, having all your facts straight. Build it on trust and goodwill and make sure you have a good understanding with your point of contact in the brokerage, making sure you have more than one person to resort to if the need arises. If you build the partnership correctly, then it stands a better chance of surviving longer. As this partnership evolves and it gets stronger and better then you are also likely to earn higher commissions or even some surprise perks in the form of bonuses.
George Milios is the founder of onlineforextrading.net, the binary options and forex news portal which is dedicated to providing you with all the information you need to successfully trade.