Forex brokers are relying on partnership programs to increase their online visibility and ensure higher client retention. A forex partnership is a collaboration where individuals refer new clients to a broker, earning a commission in return.
Whether you’re a marketing manager, a content creator, or simply someone with an audience, you can step into the world of forex partnership and find a model that works best for you. Here’s a comprehensive guide explaining five partnership models:
- Introducing Broker (IB) Program
An Introducing Broker (IB) program is the traditional forex partnership model. Individuals or businesses (IBs) earn commissions by referring traders to a forex broker.
IBs don’t hold funds or execute trades themselves. They act as intermediaries, introducing new clients to a broker and offering guidance to boost client retention rates. Some IBs also provide basic trading advice.
There are numerous benefits of joining an Introducing Broker (IB) program, such as:
- High earning potential
- Global recognition and trust
- Pre-made marketing material
- Ability to work remotely
The IB forex partnership model is suitable for bloggers, influencers, and content creators who have an audience interested in trading or financial markets.
- Affiliate Program
A affiliate forex program is one of the best ways to earn passive income. It is a revenue-sharing partnership between you and an online broker. The broker provides a unique tracking link, which you incorporate into your website content, blogs, and social media posts. Anyone who performs an action using the unique link is considered your referral.
You earn a commission based on a user’s trading activities. Forex brokers typically use one of the following three commission models:
- Cost Per Acquisition (CPA)
- Revenue Share
- Hybrid
Here are six things you should consider before joining a forex affiliate program:
- Favourable commission model
- Flexible payouts
- The broker’s regulatory compliance
- Positive industrial reputation
- Availability of marketing material
- Robust affiliate support
- White Label Partnership
In a White Label Partnership model, a company or financial institution rebrands a broker’s trading platform, offering it under its name. The White Label partner doesn’t have to build everything from scratch. The established broker provides the technology and infrastructure, such as the trading platform, and takes care of all regulatory aspects.
The White Label partner is responsible for branding, marketing, and bringing in clients under their own name. When a potential client comes across the brokerage platform, they are drawn in due to the partner’s brand, but all trades are handled by the parent broker.
The earning potential of a White Label partner is impressive. Financial institutions and companies earn a percentage of the revenue generated by their clients. Other benefits include reduced startup costs and quicker market entry.
- PAMM/ MAM Programs
MAM (Multi-Account Manager) and PAMM (Percentage Allocation Management Module) programs allow experienced traders (money managers) to manage the accounts of multiple clients. Money managers can earn a varying fee depending on the income they generate.
If you’re a professional trader looking to scale your client base and boost your profit potential through commissions, PAMM/MAM programs are a suitable option.
