If you are new to Forex trading, you might have come across the two terms of forex partners and forex affiliates. Naturally, you must be wondering about who does what and how forex partners and affiliates are different or similar.
Read on to find out.
Forex Partners and Affiliates – An Overview
In the world of Forex, both the Forex partner and the affiliates are referred to as IBs or introducing brokers. The job of introducing brokers is to promote the services of their brokers; however, both the partner and the affiliate differ from each other in these two aspects:
- Approach
- Compensation structure
The Forex affiliate essentially focuses on online marketing and gets a one-time commission every time they bring a new client on board. On the other hand, the forex partner established a direct relationship with their client. Subsequently, the partner earns ongoing commissions that are linked to the continuous trading volume of their clients.
Now that you have an overview of how the forex partners and forex affiliates are similar to and different from each other, let’s explore the details.
The Focus of the Forex Affiliate
Let us start with the details of the Forex affiliate first. The Forex affiliate essentially focuses on integrating marketing strategies that generate traffic to the broker’s website. With the increase in website traffic, an increase in the conversion rate is naturally to follow.
Apart from the focus, the forex affiliate relies on online marketing to secure referral links. When it comes to the compensation structure for the forex affiliate, it is primarily based on CPA, which stands for “cost per acquisition.” This commission model ensures a one-time payment for every client that the affiliate brings on board. The affiliate receives the commission after the clients have opened their accounts and met a preset trading volume.
The Focus on the Forex Partner
The forex partner is more or less known as the introducing broker. The job of the introducing broker is to establish and maintain long-term relationships with potential clients. One effective way to do this is through personalized support. Their potential relationships with the clients are often ongoing and direct, as they comprise the following aspects:
- Client onboarding
- Training
- Continuous Support
When it comes to the compensation model of the forex partner, their commissions are based on a revenue-sharing framework. In this model, the forex partner earns a pre-set percentage of the commission that they generate based on the trading activities of their potential clients.
Final Thoughts
When it comes to the differences between a Forex partner and a Forex affiliate, you must keep in mind that the Forex affiliate earns commissions based on sales, lead generation, etc. They get paid one time only for each client they bring on board. On the other hand, the forex partner enjoys more flexibility when it comes to earning commissions. The commissions of a forex partner include profit splits and revenue sharing. The commissions of forex partners are ongoing, which means that as long as their clients keep trading successfully, they will keep earning commissions.
