According to Bloomberg, the global forex market has grown in popularity significantly in recent years, with average daily forex trading up 29% since 2016. This is in large due to the overall ease of access users have to trading platforms. When it comes down to it, if an individual has internet access and a small amount of capital, they could get involved in forex trading.
Consequently, interest in promoting forex brands has also gone up, which has resulted in a larger pool of forex affiliates (or iGaming affiliates cross-promoting forex brands). Brokers have also identified the great potential affiliate marketing poses, which has led to the launch of more and more forex affiliate programmes, including for brands like Gain Capital, Forex.com and FXCM.
This article will dive into how affiliate marketing can be successfully leveraged for the forex industry. We also spoke with Sameer Bhopale, Chief Marketing Officer at FXCM, a managed partner of Income Access, for his personal insights on how affiliate marketing relates to the current climate of the forex industry, after 17 years of experience in it.
Why Does Forex Affiliate Marketing Work?
Affiliate marketing, in general, is a great way of building a customer base. In fact, this channel typically accounts for 10% to 30% of a brand’s acquisition. Affiliates are valuable to forex operators for two main reasons: First, they act as a third-party endorsement through reviews and broker comparisons published on their website.
Second, affiliates are a great avenue for building brand awareness in new markets, particularly when it comes to expanding into new countries where an operator has no prior experience.
From our experience working with numerous forex brokers, Income Access has witnessed firsthand how much an affiliate channel can contribute to a forex brand’s overall growth and acquisition. Since popularity of the forex vertical has been climbing rapidly during the past few years, affiliate channels have demonstrated impressive growth in key metrics that contribute directly to a brand’s overall success.
Through effective marketing, we have seen affiliates across the forex vertical contribute to average annual growth of over 29% in trader applications, increases in deposits averaging 14% per year and monthly net increases in revenue of around 18% year on year, for the brokers they are promoting.
Forex Affiliate Marketing Best Practices
The trick to successful forex affiliate marketing is manifold. From Sameer’s experience working with forex affiliates, he ascertains that those who achieve the highest levels of success promote brands via a wide variety of channels, such as PPC, SEO and social media.
We have also seen that the content included in marketing material also holds a significant amount of weight on how a forex brand is perceived. Affiliates who set themselves up as authorities and really act as an advocate of the brands they promote are typically the ones traders place their trust in, leading them to perform the best. Informative campaigns that feature trading price movements, zero commission trading or broker reviews tend to be the most impactful within this vertical.
Targeting is another key factor which leads to successful affiliate marketing for forex trading. Identifying the biggest demographic among users of a product is essential. According to Sameer, currently, the biggest markets for the forex vertical are countries like the United Kingdom, Australia, France, Germany, Italy and Spain. It is also important to keep in mind that the same person who is looking to participate in sports betting, can also be a forex trader. Employing similar strategies to cross-advertise to the same individuals, since the demographics are so similar, has proven to be useful way to convert the same person for both sports betting and forex trading.
Following current trends, it looks like the forex vertical is still on the rise and will continue to flourish, making it one to keep a close eye on during the coming months. Income Access is currently working with several brokers, including our managed partner, FXCM, and it is looking forward to partnering with more forex brands to help them grow.