When one hears “ Forex
Forex
Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value.
Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value.
Read this Term partners” as the umbrella term for Introducing Brokers (IBs) and affiliates, they don’t realise just how accurate the term is because that’s exactly what IBs and affiliates are: a driving force behind a broker’s business which helps build and retain entire networks of clients worldwide.
Playing an integral part in client retention, partners usually reward loyalty by offering traders value-add services such as analysis and educational content in addition to promotions and special terms on their own initiative.
It is, quite literally, a collaboration by which the broker and partner join forces to propel the business forward and for this reason, IBs and affiliates have become absolutely imperative to the success of online brokers.
What’s in it for them? The most successful partners have access to almost unlimited financial potential from working with reputable brokers.
Depending on the broker, partners either make money from a spread rebate deal, or cost per acquisition (CPA).
The former structure is based on the logic that the partner earns a percentage of the company’s profit from their referrals’ trades, while the latter means a partner is paid per acquisition or action, for example whenever they refer a client and/or whenever that client makes a trade.
Many brokers today offer a hybrid model through which both payment models are used, which is the case with Exness.
At Exness, affiliates and IBs are an integral part of the business and some of our strongest allies when it comes to entering new markets, and upholding a loyal and long-standing client base.
We offer up to 40% spread rebate to our partners from their referred trading activity in addition to various CPA options which pay up to $1,770 per active trader.
In the bigger picture of the various partnership models, spread rebate typically works better for IBs whilst affiliates most often choose CPA. Exness’ financial report has partner rewards at $85.4m for 2019.
Any business working with affiliates will know how quickly things change in this space, if it’s not opposition from the likes of Google, it’s the changing nature of the technological landscape or increasing influence of millenials and pre-millennial entrepreneurs.
Keeping up is a relentless task, which is why the multitude of global expos for Affiliate Marketing are in demand everywhere from Barcelona to Bangkok.
Affiliate marketing now and into the future
- Affiliate marketers prefer to promote 1–10 products.
- 81% of marketers and 84% of publishers Leverage
Leverage
In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders need to rely on leverage to make financial trading viable. Generally, the higher the fluctuation of an instrument, the larger the potential leverage offered by brokers. The market which offers the most leverage is undoubtedly the foreign exchange market, since currency fluctuations are relatively tiny. Of course, traders can select their account leverage, which usually varies from 1:50 to 1:200 on most forex brokers, although many brokers now offer up to 1:500 leverage, meaning for every 1 unit of currency deposited by the trader, they can control up to 500 units of that same currency. For example, if a trader was to deposit $1000 into a forex broker offering 500:1 leverage, it would mean the trader could control up to five hundred times their initial outlay, i.e. half a million dollars. Likewise, if an investor using a 1:200 leveraged account, was trading with $2000, it means they would be actually controlling $400,000, i.e. borrowing an additional $398,000 from the broker. Assuming this investment rises to $402,000 and the trader closes their trade, it means they would have achieved a 100% ROI by pocketing $2000. With leverage, the potential for profit is clear to see. Likewise, it also gives rise to the possibility of losing a much greater amount of their capital, because, had the value of the asset turned against the trader, they could have lost their entire investment.FX Regulators Clamp Down on Leverage Offered by BrokersBack in multiple regulators including the United Kingdom’s Financial Conduct Authority (FCA) took material measures to protect retail clients trading rolling spot forex and contracts for difference (CFDs). The measures followed after years of discussion and the result of a study which showed the vast majority of retail brokerage clients were losing money. The regulations stipulated a leverage cap of 1:50 with newer clients being limited to 1:25 leverage.
In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders need to rely on leverage to make financial trading viable. Generally, the higher the fluctuation of an instrument, the larger the potential leverage offered by brokers. The market which offers the most leverage is undoubtedly the foreign exchange market, since currency fluctuations are relatively tiny. Of course, traders can select their account leverage, which usually varies from 1:50 to 1:200 on most forex brokers, although many brokers now offer up to 1:500 leverage, meaning for every 1 unit of currency deposited by the trader, they can control up to 500 units of that same currency. For example, if a trader was to deposit $1000 into a forex broker offering 500:1 leverage, it would mean the trader could control up to five hundred times their initial outlay, i.e. half a million dollars. Likewise, if an investor using a 1:200 leveraged account, was trading with $2000, it means they would be actually controlling $400,000, i.e. borrowing an additional $398,000 from the broker. Assuming this investment rises to $402,000 and the trader closes their trade, it means they would have achieved a 100% ROI by pocketing $2000. With leverage, the potential for profit is clear to see. Likewise, it also gives rise to the possibility of losing a much greater amount of their capital, because, had the value of the asset turned against the trader, they could have lost their entire investment.FX Regulators Clamp Down on Leverage Offered by BrokersBack in multiple regulators including the United Kingdom’s Financial Conduct Authority (FCA) took material measures to protect retail clients trading rolling spot forex and contracts for difference (CFDs). The measures followed after years of discussion and the result of a study which showed the vast majority of retail brokerage clients were losing money. The regulations stipulated a leverage cap of 1:50 with newer clients being limited to 1:25 leverage.
Read this Term affiliate marketing.
- Mobile devices account for more than 50% of affiliate-referred traffic.
- The gender split for affiliates is currently 54.23% male and 42.97% female.
Unless people suddenly tire of sharing pictures of their favourite fashion items, food or drink products on social media, which is unlikely any time soon, then the power is going to continue to lie with micro-influencers - individuals with an audience from 2,000 to 1,000,000 subscribers or followers.
The multinational organisations making those products are already realising that there is a major revenue stream associated with those influencers and they will attempt to monetise every mention of their products by pushing traffic through affiliates back to their digital assets.
We already know that social media is essentially giving everyone the chance to become an affiliate but what we can expect to see more commonly is the integration of affiliate marketing as part of every start-up’s business plan.
Business owners understand that promoting a product or service on social media is a robust catalyst for rapid growth and brand awareness, or simply put, profit.
Working with affiliates will no longer be a ‘nice to have’ but will be the life source of businesses into 2020 and beyond.
The financial industry is no exception to the greater picture of Affiliate Marketing, because the power of social media and the digital world does not just lie in pleasing pictures of fashion and food, but in the fundamental form of influence, which is the power of word of mouth.
If you have any form of online presence, you have some kind of status and thus a significant deal of influence. This, in turn, means you have the trust of audiences and the ability to promote products of your choosing with ease.
In forex, where so many of our markets rely heavily on the networks of our partners, the onus is on brokers to provide guidance to ensure their practices are not misleading.
When all parties work ethically and to a high standard, “influencer” partnerships are the building blocks of a successful business.
Disclaimer: The content of this article is sponsored and does not represent the opinions of Finance Magnates.
This post was written by Nir Iter, Senior Affiliate Manager at Exness
When one hears “ Forex
Forex
Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value.
Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value.
Read this Term partners” as the umbrella term for Introducing Brokers (IBs) and affiliates, they don’t realise just how accurate the term is because that’s exactly what IBs and affiliates are: a driving force behind a broker’s business which helps build and retain entire networks of clients worldwide.
Playing an integral part in client retention, partners usually reward loyalty by offering traders value-add services such as analysis and educational content in addition to promotions and special terms on their own initiative.
It is, quite literally, a collaboration by which the broker and partner join forces to propel the business forward and for this reason, IBs and affiliates have become absolutely imperative to the success of online brokers.
What’s in it for them? The most successful partners have access to almost unlimited financial potential from working with reputable brokers.
Depending on the broker, partners either make money from a spread rebate deal, or cost per acquisition (CPA).
The former structure is based on the logic that the partner earns a percentage of the company’s profit from their referrals’ trades, while the latter means a partner is paid per acquisition or action, for example whenever they refer a client and/or whenever that client makes a trade.
Many brokers today offer a hybrid model through which both payment models are used, which is the case with Exness.
At Exness, affiliates and IBs are an integral part of the business and some of our strongest allies when it comes to entering new markets, and upholding a loyal and long-standing client base.
We offer up to 40% spread rebate to our partners from their referred trading activity in addition to various CPA options which pay up to $1,770 per active trader.
In the bigger picture of the various partnership models, spread rebate typically works better for IBs whilst affiliates most often choose CPA. Exness’ financial report has partner rewards at $85.4m for 2019.
Any business working with affiliates will know how quickly things change in this space, if it’s not opposition from the likes of Google, it’s the changing nature of the technological landscape or increasing influence of millenials and pre-millennial entrepreneurs.
Keeping up is a relentless task, which is why the multitude of global expos for Affiliate Marketing are in demand everywhere from Barcelona to Bangkok.
Affiliate marketing now and into the future
- Affiliate marketers prefer to promote 1–10 products.
- 81% of marketers and 84% of publishers Leverage
Leverage
In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders need to rely on leverage to make financial trading viable. Generally, the higher the fluctuation of an instrument, the larger the potential leverage offered by brokers. The market which offers the most leverage is undoubtedly the foreign exchange market, since currency fluctuations are relatively tiny. Of course, traders can select their account leverage, which usually varies from 1:50 to 1:200 on most forex brokers, although many brokers now offer up to 1:500 leverage, meaning for every 1 unit of currency deposited by the trader, they can control up to 500 units of that same currency. For example, if a trader was to deposit $1000 into a forex broker offering 500:1 leverage, it would mean the trader could control up to five hundred times their initial outlay, i.e. half a million dollars. Likewise, if an investor using a 1:200 leveraged account, was trading with $2000, it means they would be actually controlling $400,000, i.e. borrowing an additional $398,000 from the broker. Assuming this investment rises to $402,000 and the trader closes their trade, it means they would have achieved a 100% ROI by pocketing $2000. With leverage, the potential for profit is clear to see. Likewise, it also gives rise to the possibility of losing a much greater amount of their capital, because, had the value of the asset turned against the trader, they could have lost their entire investment.FX Regulators Clamp Down on Leverage Offered by BrokersBack in multiple regulators including the United Kingdom’s Financial Conduct Authority (FCA) took material measures to protect retail clients trading rolling spot forex and contracts for difference (CFDs). The measures followed after years of discussion and the result of a study which showed the vast majority of retail brokerage clients were losing money. The regulations stipulated a leverage cap of 1:50 with newer clients being limited to 1:25 leverage.
In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders need to rely on leverage to make financial trading viable. Generally, the higher the fluctuation of an instrument, the larger the potential leverage offered by brokers. The market which offers the most leverage is undoubtedly the foreign exchange market, since currency fluctuations are relatively tiny. Of course, traders can select their account leverage, which usually varies from 1:50 to 1:200 on most forex brokers, although many brokers now offer up to 1:500 leverage, meaning for every 1 unit of currency deposited by the trader, they can control up to 500 units of that same currency. For example, if a trader was to deposit $1000 into a forex broker offering 500:1 leverage, it would mean the trader could control up to five hundred times their initial outlay, i.e. half a million dollars. Likewise, if an investor using a 1:200 leveraged account, was trading with $2000, it means they would be actually controlling $400,000, i.e. borrowing an additional $398,000 from the broker. Assuming this investment rises to $402,000 and the trader closes their trade, it means they would have achieved a 100% ROI by pocketing $2000. With leverage, the potential for profit is clear to see. Likewise, it also gives rise to the possibility of losing a much greater amount of their capital, because, had the value of the asset turned against the trader, they could have lost their entire investment.FX Regulators Clamp Down on Leverage Offered by BrokersBack in multiple regulators including the United Kingdom’s Financial Conduct Authority (FCA) took material measures to protect retail clients trading rolling spot forex and contracts for difference (CFDs). The measures followed after years of discussion and the result of a study which showed the vast majority of retail brokerage clients were losing money. The regulations stipulated a leverage cap of 1:50 with newer clients being limited to 1:25 leverage.
Read this Term affiliate marketing.
- Mobile devices account for more than 50% of affiliate-referred traffic.
- The gender split for affiliates is currently 54.23% male and 42.97% female.
Unless people suddenly tire of sharing pictures of their favourite fashion items, food or drink products on social media, which is unlikely any time soon, then the power is going to continue to lie with micro-influencers - individuals with an audience from 2,000 to 1,000,000 subscribers or followers.
The multinational organisations making those products are already realising that there is a major revenue stream associated with those influencers and they will attempt to monetise every mention of their products by pushing traffic through affiliates back to their digital assets.
We already know that social media is essentially giving everyone the chance to become an affiliate but what we can expect to see more commonly is the integration of affiliate marketing as part of every start-up’s business plan.
Business owners understand that promoting a product or service on social media is a robust catalyst for rapid growth and brand awareness, or simply put, profit.
Working with affiliates will no longer be a ‘nice to have’ but will be the life source of businesses into 2020 and beyond.
The financial industry is no exception to the greater picture of Affiliate Marketing, because the power of social media and the digital world does not just lie in pleasing pictures of fashion and food, but in the fundamental form of influence, which is the power of word of mouth.
If you have any form of online presence, you have some kind of status and thus a significant deal of influence. This, in turn, means you have the trust of audiences and the ability to promote products of your choosing with ease.
In forex, where so many of our markets rely heavily on the networks of our partners, the onus is on brokers to provide guidance to ensure their practices are not misleading.
When all parties work ethically and to a high standard, “influencer” partnerships are the building blocks of a successful business.
Disclaimer: The content of this article is sponsored and does not represent the opinions of Finance Magnates.
This post was written by Nir Iter, Senior Affiliate Manager at Exness