{"id":13196,"date":"2025-07-25T14:25:29","date_gmt":"2025-07-25T13:25:29","guid":{"rendered":"https:\/\/investx.fr\/en\/?p=13196"},"modified":"2025-07-25T14:25:31","modified_gmt":"2025-07-25T13:25:31","slug":"affiliate-trading-definition-guide","status":"publish","type":"post","link":"https:\/\/investx.fr\/en\/crypto-investing\/trading\/affiliate\/","title":{"rendered":"Affiliate Trading : What Is It and How Does It Work ?"},"content":{"rendered":"\n
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Join a community of crypto traders<\/a><\/div>\n<\/div>\n\n\n\n

What is Trading Affiliation ?<\/h2>\n\n\n\n

Trading affiliation<\/strong> could be defined as compensation that a person\/entity earns for registering a client with a partner<\/strong>. In the trading world, traders must register with brokers or crypto exchanges to place their trades.<\/p>\n\n\n\n

These platforms<\/a>, like any company, constantly seek to acquire more clients. To promote their platforms, some brokers<\/a> and exchanges<\/a> use affiliate programs<\/strong>. The principle is simple. The platform offers advertisers (influencers, brands, websites) compensation<\/strong> for every client who signs up through them.<\/p>\n\n\n\n

Affiliation is therefore a system of “advertising”<\/strong>: an intermediary brings a client to a company, and the company compensates the intermediary for doing so. To track which client comes from which advertiser, companies generally use two techniques :<\/p>\n\n\n\n

    \n
  1. Tracking links<\/li>\n\n\n\n
  2. Promo codes<\/li>\n<\/ol>\n\n\n
    \n
    \"trading<\/figure>\n<\/div>\n\n\n

    Tracking links<\/strong> contain information to identify the traffic source. For example, a tracking link might look like this: “https:\/\/brandname.com\/&source=advertiser”. The brand can then know that all clients who registered via this link came from a specific advertiser.<\/p>\n\n\n\n

    Promo codes<\/strong> are more commonly used in influencer advertising<\/strong> than in trading affiliation. The influencer promotes a brand by saying “Get X% discount using my code XX<\/em>“.<\/p>\n\n\n\n

    Different Remuneration Models for Affiliation<\/h2>\n\n\n\n

    Beyond the volume-sharing model used by crypto exchanges, there are different types of affiliate programs offered by brokers and other platforms. The type of remuneration differs based on the actions taken by the client. We’ll explain these different types in detail and what they entail.<\/p>\n\n\n\n

    Many people think that trading affiliation compensates the advertiser based on client losses<\/strong>. You’ll discover below that this is generally not the case.<\/p>\n\n\n\n

    Here are the 5 most common commission types<\/strong> in trading affiliation :<\/p>\n\n\n\n

      \n
    1. CPL (Cost Per Lead)<\/li>\n\n\n\n
    2. CPA (Cost Per Action)<\/li>\n\n\n\n
    3. Revenue Sharing<\/li>\n\n\n\n
    4. Hybrid Scheme<\/li>\n\n\n\n
    5. IB Deal<\/li>\n<\/ol>\n\n\n\n

      1. CPL (Cost Per Lead)<\/h3>\n\n\n\n

      CPL<\/strong> is the simplest type of commission offered in affiliation. The advertiser is simply paid for the leads they bring<\/strong> to the broker.<\/p>\n\n\n

      \n
      \"CPL\"<\/figure>\n<\/div>\n\n\n

      A lead is generally a person registered on the platform<\/strong>. Some may also pay per click, but the compensation is obviously lower.<\/p>\n\n\n\n

      CPL doesn’t require any further action from the client other than registering. It’s a relatively rare scheme in the affiliation world because many clients, whether in trading or elsewhere, register on a platform and do nothing more. In this case, the brand is obviously losing out.<\/p>\n\n\n\n

      2. CPA (Cost Per Action)<\/h3>\n\n\n\n

      CPA<\/strong> is the most common<\/strong> type of commission in affiliation. It’s a type that can encompass more. In this model, the brand defines an action that the client must take to trigger compensation<\/strong> for the advertiser.<\/p>\n\n\n

      \n
      \"CPA\"<\/figure>\n<\/div>\n\n\n

      This action can be registration (which would be identical to CPL) or, in the case of trading, a deposit<\/strong>. For other domains, the action can also be subscribing to a plan.<\/p>\n\n\n\n

      CPA is the most widespread in trading. The broker often compensates the advertiser when the new client makes a deposit<\/strong> on the platform. The commission generally varies according to the deposit amount<\/strong>.<\/p>\n\n\n\n

      To prevent abuse, many brokers have implemented a CPA that includes the deposit plus a certain number of opened trades<\/strong>. This helps them avoid fake accounts and “deposit-withdrawal” schemes.<\/p>\n\n\n\n

      3. Revenue Sharing<\/h3>\n\n\n\n

      Revenue sharing<\/strong> is the type of commission where the advertiser is paid based on client performance. Contrary to popular belief, it’s not client losses<\/strong> that trigger commissions but their trading volume.<\/p>\n\n\n

      \n
      \"revenue<\/figure>\n<\/div>\n\n\n

      In a revenue-sharing system, the advertiser earns a portion of the fees<\/strong> that the broker or exchange charges the client. When opening a position, the trader generally pays fees. When closing the position as well, particularly through spreads.<\/p>\n\n\n\n

      The advertiser therefore earns a percentage of the fees collected<\/strong> by the platform. Remuneration based on client losses is prohibited in trading<\/strong>, whether for brokers or advertisers.<\/p>\n\n\n\n

      4. Hybrid Systems<\/h3>\n\n\n\n

      Hybrid systems<\/strong> combine several types of remuneration. For example, a classic hybrid scheme would be a commission upon client registration<\/strong> (CPL) followed by a CPA if they subscribe to a paid plan or formula.<\/p>\n\n\n\n

      In trading affiliation, a possible scheme would be a CPL followed by revenue sharing based on client activity.<\/p>\n\n\n\n

      5. The IB “Introducing Broker” Deal<\/h3>\n\n\n\n

      An Introducing Broker (IB) is a brokerage agent<\/strong> who helps traders open a trading account with a broker. In exchange for these services, the IB receives a commission. The role of the Introducing Broker is to identify individuals or companies interested in trading or investing and then direct them to a broker<\/strong>.<\/p>\n\n\n

      \n
      \"Introducing<\/figure>\n<\/div>\n\n\n

      As an intermediary, the IB does not directly manage<\/strong> client transactions or capital. The broker handles all operational aspects of transactions, including order execution, asset custody, and regulatory compliance.<\/p>\n\n\n\n

      The compensation of an Introducing Broker in the trading sector is primarily based on commissions. Here are the different remuneration methods commonly used :<\/p>\n\n\n\n