Forex is not only the largest but also the most liquid financial market in the world today. For a market that is thirty times the size of the New York Exchange, and that churns out over $5 trillion in trading volume every day, the opportunities, and possibilities for making money (or at times, loosing money) are limitless.The most popular and effective method of making money in the forex market without participating in live trading is through trading partnership programmes. If you choose the right trading partnership programme and use it smartly, it can grow from a source of side income to a lucrative business.
What Is A Trading Partnership Programme?
It is a referral programme offered by brokers as a way of increasing their client base. Financial markets can be lucrative for brokers, but attaining new clients is a highly competitive environment. This means that if you can deliver valuable clients, many brokers are happy to pay significant referral payments.
How Do Trading Partnership Programmes Work?
The reason for joining a Trading Partnership is to procure new clients for brokers. Partners often achieve this by running advertising campaigns, promoting the brokers on their own websites, or for those who move in the right circles, by promoting brokers through their networks.It is a common path for the prospective client to be introduced to the idea of trading, or trading with a particular broker. To then either become educated about the subject through learning materials and courses, or for experienced traders, the benefits of trading with the broker.The client will then open a demo account to experience trading with this broker. At this time, they will likely be contact by the broker’s sales team to discuss opening a live account, making a deposit, and beginning to make trades.Depending on the agreement, the Partner can earn money at many different points of the client’s sign-up journey. There are several payment models for these kind of agreements, and it is important to understand each one.
Types of Trading Partnership Programmes
Trading partnership programmes are a great way to earn money through trading without participating in the live trading process.To succeed as a trading partner, you should start by evaluating your professional skills and determine how much time you have available to dedicate to the business. You do not need to be a trading expert to succeed in running a trading partnership programme. The most common types of trading partnership programmes are:
Online Trading Partnerships
Online Trading Partnerships promote a broker’s services online. This could be through managing pay-per-click advertising campaigns, writing, or publishing content around trading and the broker’s services or by building a network of those who do.As with any form of marketing, it is beneficial to understand your target audience, but as an online trading partner you do not need to be an expert in trading. If you are an expert in generating the right traffic for the right website, you can play the percentages and be highly successful.
Introducing Broker (IB)
Introducing Brokers (IB’s) are a type of trading partner who often will meet with clients in person, and therefore, expertise in trading and the financial markets is more important.As an IB, your responsibility is to work independently and introduce clients to the trading services of a brokerage company.The perception of an IB to prospective clients is important. Therefore, it is useful to have a social media presence and a blog or a website that you will dedicate to building the image of someone who is knowledgeable about trading and the needs of traders, and has the connections to get their clients good deals with brokers.While it is common to work under the above payment models initially, because of the personal nature of an IB’s role, it is not uncommon for them to go on to negotiate more tailored arrangements if they build a reputation of being influential and delivering high-quality clients. There is also scope for advancing to a master or regional IB, taking on IBs under your umbrella and earning an additional income from their introductions on top of your own commission.It is ideal for owners of high traffic media channels, professional individual investment managers, and existing brokerage and investment companies. Those with the trading expertise and capacity to build a brand. It is important to mention here that all IB’s must ensure that they comply with the FCA’s requirements when promoting Forex and CFDs and should take into consideration the guidance provided in these areas when working to promote a brokerage such as CFI.
White Label (WL)
White labelling is a less common type of trading partnership but has to potential to be highly lucrative is your broker often helps you build the infrastructure you require to get started.A white label agreement allows you to start your own brokerage firm with its own branding and advertising but process the transactions with the help of the original broker. It is ideal for an individual or a company seeking to become a broker, but who do not have the required regulation, funds, hardware, and software to proceed with the registration of a fully-fledged brokerage company. A white label agreement with a successful broker will enable you to access the market through their trading platform
and save you the paperwork and the hassle of running a forex brokerage firm. As a white label, you will be responsible for financial transactions and contact details of your clients just like an independent broker is.The objective is to gather as many suitable and qualified traders and investors as possible and direct them to the master broker's platform and earn commission via these introductions. Please note with this kind of partnership you would also need to be regulated. You can request more information on how to become a white label Trading Partnership with CFI.
Whether you are a small institution looking to cater to the trading needs of your clients or a private investor trading large sizes, CFI provides access to multiple liquidity providers with deep pools connected across different data centers. CFI deals with the biggest liquidity providers in the business so no matter what trading conditions you may need, the dedicated team of experts is likely to find you a solution that will save you time and money. Please note with this kind of partnership you would also need to be regulated. .
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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