Your affiliate business could succeed or fail depending on the Forex broker you choose to work with. A strong due diligence checklist serves as a safety net and your guide to long-term, profitable partnerships.

With over 1,500 brokers globally and a market expected to reach $16.8 billion by 2028, competition is fierce. Let’s explore the essential steps to avoid costly mistakes and ensure profitability over time.

Regulatory Compliance: Your First Filter

Always check the broker’s license and regulations first. Regulated brokers inspire more trust, leading to up to about 45% more business compared to unregulated brokers.

Look for the Best Regulators:

• – FCA (UK)
• – CySEC (Cyprus)
• – ASIC (Australia)

These Tier-1 authorities require strict capital reserves and protection of client funds. Additionally, consider:

• – Multi-jurisdictional licenses for a strong commitment to compliance.
• – Regular audits and clear reporting for transparency.
• – Compensation plans that protect traders and your reputation.

Red Flags: Unverifiable license numbers, “pending” licenses, registrations in other countries, or past warnings from regulators.

Always verify directly on the regulator’s official site. In 2024, over 200 fake broker websites were shut down due to fraudulent credentials.

Understand Your Earnings: Commission Structures

Choosing the right commission model, either CPA, Rev-Share, or Hybrid, will directly impact your earnings.

1. Cost Per Acquisition (CPA)

A one-time payment for each qualified client.

Example: 10 clients at a $1,200 CPA equals $12,000 per month.

Best for: High traffic and steady income.

2. Share of Revenue (Rev-Share)

Earn a percentage of the broker’s revenue indefinitely from referred clients.

Example: $100,000 in sales at 30% equals $30,000 per month.

Best for: Passive income over time.

3. Hybrid Model

Combines upfront CPA with ongoing revenue share.

Example: A $600 CPA plus a 15% revenue share provides both immediate and long-term income.

Trend: Hybrid models now comprise roughly 43% of affiliate programs, up from 28% in 2022, indicating a preference for multiple income sources.

Broker (IB) vs. Affiliate

These roles differ in involvement and responsibilities.

Introducing Brokers (IBs)

• – Provide personal assistance or education.
• – May require government registration.
• – Earnings depend on client trading volume.
• – Foster deeper, lasting relationships with traders.

Affiliates

• – Focus on marketing and lead generation.
• – Typically do not need a license (check local laws).
• – Earn through CPA, Rev-Share, or Hybrid models.
• – Operate on a larger scale with minimal client contact.

Choose the role based on your business model; some brokers allow starting as an affiliate and transitioning to an IB later.

The Trust Factor: Payment Terms

Delayed payments can quickly ruin partnerships. Check:

• – Payment Speed: How often are payments made? Weekly, bi-weekly, or monthly?
• – Delays: Is there a lag after month-end?
• – Minimum Payouts: What are the thresholds?

About 73% of affiliates prioritize reliable payments. Top-tier programs pay within 5 to 10 business days.

Payment Methods

Options include bank wire, Skrill, Neteller, PayPal, crypto, and local options.

Service Level Agreements (SLAs)

Request written guarantees on:

• – Payment schedules
• – Support response times (less than 48 hours)
• – Frequency of data transmission
• – Platform uptime (at least 99.9%)

Red Flags: Unclear terms, hidden fees, mismatched payment cycles, or negative feedback from affiliates.

Tip: Speak to current affiliates about their payment experiences over the past 6 to 12 months.

Following AML and KYC Rules

Strong Know Your Customer (KYC) and anti-money-laundering (AML) practices protect you and your traders. In 2024, regulators imposed $8.6 billion in fines for AML violations.

Ensure your broker:

• – Utilizes automated KYC systems for ID and address verification.
• – Complies with FATF (Financial Action Task Force) guidelines.
• – Provides regular staff training on AML updates.
• – Identifies PEPs and monitors suspicious transactions.

Robust AML/KYC systems expedite onboarding and improve conversion rates.

Dependability of Technology and Platforms

A broker’s technology stack directly influences trader satisfaction and conversion rates. Look for:

• – Platform options (MT4, MT5, cTrader, or proprietary)
• – Execution speed and uptime (> 99.9%)
• – Well-reviewed mobile apps
• – API access for advanced users
• – Backup servers and disaster recovery measures

About 89% of traders prioritize reliability. Any downtime during volatility can lead to lost trades and eroded trust.

Creating Your Due Diligence Checklist

Organize your criteria into three categories:

Must-haves:

• – Valid tier-1 regulation (FCA, CySEC, ASIC)
• – Verified license numbers
• – Clear commission structure
• – Defined payment terms and SLAs
• – Strong AML/KYC procedures

Very Important:

• – Positive reviews from affiliates
• – Minimum three years in business
• – Competitive commissions
• – Real-time reporting tools
• – Quick support response times

Nice-to-Haves:

• – Multiple commission models (CPA, Rev-Share, Hybrid)
• – Branding and white-label solutions
• – Sub-affiliate programs
• – Performance bonuses

Start by focusing on essential requirements, then assess secondary factors.

Example of a Real-World Checklist

When comparing two broker programs, consider:

• – Broker A: Checks all essential boxes — Tier-1 regulation, $800 CPA + 10% Rev-Share, payments within 7 days, 5 years of clean history, 89% positive reviews, and a dedicated affiliate manager.

• – Broker B: Fails several tests — offshore license, $1,500 CPA only (no residual income), unclear payment terms, just 1 year in business, mixed reviews, and no dedicated manager.

What it Means: Broker A protects your reputation and sets you up for long-term income. Meanwhile, Broker B presents a higher risk of failure or non-payment.

Mistakes Forex Affiliates Commonly Make

Avoid these costly shortcuts:

• – Neglecting to check regulations for “high CPA offers”
• – Ignoring feedback from other affiliates about payments
• – Skimming terms and conditions
• – Promoting without testing the trading platform
• – Overlooking the quality of support

In 2024, an estimated 22% of new affiliates partnered with unregulated brokers, resulting in about $47 million in unpaid commissions. Don’t fall into this trap.

How VT Affiliates Simplifies Due Diligence

Partnering with VT Affiliates streamlines your due diligence process. They are fully regulated by FCA, CySEC, and ASIC, offering:

• – Clear commission options: CPA, IB, and Hybrid
• – Fast payout processing
• – Defined SLAs for payments, support, and reporting
• – Strong compliance with AML and KYC

This allows you to focus on marketing and attracting visitors, knowing your broker partner meets all requirements.

Conclusion

Choosing the right partners is often key to an affiliate’s success or failure. A robust due diligence checklist safeguards your income and reputation. Prioritize regulation, clear commissions, and reliable payments to build a sustainable business.

The best affiliates don’t chase every high-payout offer. Instead, they cultivate long-term relationships with brokers valuing honesty, compliance, and fairness.

Start with this checklist, and when you’re ready to grow with a trustworthy partner, VT Affiliates provides the guidelines, commission options, and reliability that can elevate good affiliates to greatness.