With a daily trading volume of over $6 trillion, the foreign exchange (Forex) market is the world’s largest and most liquid financial market. This also means the market has massive profit potential – no wonder many individuals and businesses are looking to enter the market.
However, the Forex market is complex and fluid, making navigating challenging, especially for beginners. As such, various brokers use partnerships to make the learning curve gentle for beginners, as well as enable existing traders to earn more on the side. Through such partnerships, individuals and businesses can refer clients to Forex brokers and, in return, receive a commission on the clients’ trading activity.
But how can traders like you choose the best Forex partner? This article explores the different types of Forex partnerships available, the criteria for selecting the best Forex partner, where to find them, and tips for building successful partnerships. Whether you’re an experienced trader looking to expand your income streams or a beginner looking to enter the market, this article provides valuable insights to help you find the best partner.
A Look into the Available Types of Forex Partnerships
The first step when doing due diligence before taking on Forex partnerships is to know what choices you have. Currently, there are three main types of partnerships between brokers and Forex traders, including:
Affiliate Programs
Simply put, an affiliate is an individual or entity in a close relationship with a larger organisation. For example, you are an affiliate of your employer when you represent them in an official capacity during a business transaction.
In the context of Forex trading, affiliate programs are agreements that allow individuals like you to refer clients to brokers and earn a commission on the clients’ trading activity. Typically, affiliates receive a percentage of the income the broker generates from each new client referred. Affiliate programs require little to no financial investment, and affiliates do not need to have any trading experience. Additionally, affiliates usually receive extra incentives besides monetary compensation, including access to premium marketing tools and resources.
Introducing Brokers (IBs)
Introducing brokers (IBs) are relationships that, unlike affiliate marketing, require more effort from the trader. As the term suggests, you’ll introduce prospective clients to the broker. It means your work goes beyond merely pointing the client to the Forex broker – for example, you’ll be required to provide ongoing support and customer service to the clients. In return, the broker will compensate you more handsomely than affiliates. IBs may also receive access to additional resources, such as trading signals and research, to help them provide better support to new clients.
White Label Solutions
White label solutions are relationships that often occur between businesses. Such a relationship consists of a partnership deal between two companies whereby the first party produces a good or service, and the second party sells it in its own brand and name. For example, a Forex broker may agree with a software development company to market to its clients a market analysis solution the former produced as the latter’s own.
Usually, white-label solutions are an option for businesses looking to start their own brokerage services without having to build their own trading platform. The solution allows them to license an existing Forex broker’s trading platform and branding to offer trading services to their clients. The latter is responsible for marketing, customer service, and regulatory compliance, while the former (i.e., the platform owner) provides the backend services. In return, the latter pays a fee.
Criteria for Choosing the Best Forex Partner
Like any other partnership, finding the best Forex partner should be a priority. The best partner will help you reach personal objectives and, most importantly, maintains the highest level of integrity and transparency. To this end, you need a foolproof methodology for choosing the partner. Read on for an example of a good selection criteria:
Investigate the Reputation and Reliability
The prospective partner should have a clean reputation in the industry and a proven track record of reliability. It means scouring the internet and other online forums for clues. Also, the broker must be authorised by reputable financial authorities. You may also want to work with businesses that have been in the market for a considerable period to avoid pairing yourself up with a fraudulent project.
For example, BlackBull Markets, the trading name of BBG Limited, is a trading brokerage company registered in various jurisdictions, including Seychelles, the United Kingdom, and New Zealand. Moreover, it is authorised by reputable regulators to provide trading services in many countries worldwide. Therefore, such a broker is an ideal choice based on this criterion.
Consider the Commission Structure and Payout Terms
What percentage will the broker payout to partners? Considering this question as part of the due diligence process is crucial. You must ensure the prospective partner offers competitive commission rates and transparent payout terms. In addition, ensure that you fully understand the commission structure and how you’ll be paid before you sign the agreement.
Marketing Support and Resources
We explained earlier that some partnerships might require you to guide the new clients throughout their initial interactions with the broker. As such, it helps to ensure the partner provides you with the necessary tools to deliver the best results. This is very important, especially when the agreement includes a clause where your compensation is tied to the performance of the new clients.
Thus, you must seek partners that provide sufficient and relevant marketing materials, such as banners, landing pages, and email templates. Furthermore, the partner should be willing to work with you to create customised marketing materials that align with your brand and target audience.
Trading Platform and Technology
The trading platform is not integral to the broker’s business but also central to its success. A broker with a user-friendly and reliable platform is more useful to you because the clients you refer will likely stay around for a long time. Also, the platform must have enough features and tools to ensure the clients’ trading activities are seamless and enjoyable.
In addition, the clients should be able to access the platform on the go. They should be able to log into their accounts and perform trading activities from their smartphone, desktop computer, and tablet. A good trading platform also provides a constant stream of real-time market data, access to premium charting tools, and useful indicators. Additionally, the Forex partner should offer a range of trading instruments, including Forex pairs, commodities, and indices.
This is another area in which BlackBull Markets shines. The broker provides access to nine different trading platforms, including MetaTrader, the trading community’s favourite. So whether you are on a mobile phone or PC, you can open your account and make trades seamlessly. This makes BlackBull an interesting choice for those who want such a wide variety of options regarding trading platforms.
Customer Service and Support
Finally, and most importantly, the prospective partner should have a responsive and helpful customer service team. New clients can be a lot of work, especially because they have to learn plenty of things in a short span of time. They need responsive customer support to walk them through issues when they arise. Thus, it helps to look for partners who offer 24/7 support through various channels, such as email, phone, and live chat. It’s also important to check how fast and effectively the support team responds to inquiries.
Where to Find Forex Partners
Now that you know how to select the partner that best fits your objectives, let’s learn where to find them. The following channels are ideal for finding prospective partners in the Forex market:
- Forex Broker Websites: All legitimate Forex brokers have a website. Given the nature of their business, they must have sites to allow clients from all over the world to access their services and get help when necessary. Also, most brokers have a section on their website dedicated to partnerships. The section provides crucial information on available programs and how to engage them. Therefore, you may want to visit the websites of different Forex brokers and compare their offerings to identify the best fit.
- Forex Affiliate Networks: Away from broker websites, you can also find Forex partners in affiliate networks. The networks are often websites that aggregate requests for affiliates or affiliates looking for partnerships with brokers. Joining an affiliate network promises early access to such requests because some brokers prefer to start from there – the audience fits their objectives. Some popular affiliate networks for Forex traders include ClickDealer and FlexOffers.
- Forex Communities and Forums: There are many Forex communities and forums online where participants share the latest news and insights. It is also an ideal platform to learn about new requests for partners. Participating in these communities lets you connect with other traders and partners and learn about different partnership programs. You can also post in forums, asking for recommendations and advice from other members.
- Social Media Platforms: Forex forums and communities were most popular before the golden age of social media. However, with social media dominating the internet, the platforms have become an active ground for Forex traders and brokers to interact. For example, platforms like LinkedIn and Twitter have vibrant communities that share the latest developments in the space. You can simply search for keywords like “Forex affiliate” or “Forex IB” on these platforms to connect with prospective partners.
