How ATFX is Working with European Forex Affiliates Under MiFID II

ATFX European Forex Affiliates

ATFX Global Markets (ATFX) has launched a revolutionary “web affiliate” program, called the Marketing Partner Programme (MPP). This unique program holds an edge over other affiliate programs in Europe, given that it aims to be completely compliant with current regulations, while ATFX itself is regulated by the CySEC, is EEA authorised and registered with the FCA. The company is both MiFID II and CySEC compliant.

The company explained that traditional forex broker programs tend to focus on introducer arrangements, paying their affiliates based on the trading activities of introduced clients. Therefore, commission payments for such programs are linked to (but not limited to) spread, volumes, size or number of deposits, instruments, number of trades and more. These are also the activities that are scrutinized most keenly by regulators, who have the interest of the trader in mind. Even the smallest divergence from suggested best practices and existing regulations could mean that the forex broker’s account could be terminated, and the affiliate’s earnings would come to a grinding halt overnight.

Compliance with MiFID II

ATFX takes great pride in ensuring that all its operations are compliant with regional and European regulations, such as MiFID II because the company understands that it is this compliance that ensures that all their operations are completely transparent and safe for their clients, affiliates and their own team.

Markets in Financial Instruments Directive (MiFID) has been put in place to ensure transparency across the financial markets within the European Union, while standardising regulatory disclosures, which are required in certain markets. The aim of the legislative framework is to ensure greater protection for traders and investors across all asset classes, from equities to ETFs and forex.

Initially launched to counter the challenges thrown up by the financial crisis of 2008, the updated MiFIDII came into effect in January 2018. The new regulations require forex brokers to not only function within the guidelines put forth by the MiFID II, but also ensure that they are using secure technological architecture, along with cutting edge payment solutions for the protection of their clients.

Being compliant with these changes means that forex merchants need to invest heavily to bring their platforms and operations up to scratch. This is where ATFX is one step ahead of the rest. With its advanced online trading platform, based on MetaTrader 4, and systems put in place with a focus on the requirements put forth by MiFID II, the company is completely compliant not just with the European Union’s regulations, but also with the UK FCA’s standards.

image of ATFX Mifid explanation diagram

 

Source: What is Mifid II and How Will it Affect EU’s Financial Industry; Financial Times, September 2017

What Makes ATFX’s MPP Different?

The reality is that affiliates often get the short end of the stick, with forex brokers attempting to keep the larger chunk of earnings for themselves. This is evident from the fact that often brokers do not accurately report accounts opened by an affiliate’s leads, delaying payments or even holding back commissions. The higher risk to affiliates is from brokers who claim to be MiFID II compliant but have not invested in bringing their systems up to the newly established standards.

In addition, there are brokers who attempt to lure affiliates by claiming high rebates and high proportions of revenue sharing. However, the reality is very different, and this only comes to light after the affiliate joins their program and is cheated out of his hard-earned commission.

Being aware of all the issues that affiliates have to deal with, ATFX designed its MPP program to remove the trading-based commission structure that most other brokers follow. MPP pays partners based on where their introduced clients are within the ATFX sales funnel. This eliminates the risk of local regulators terminating a forex affiliate program that the introducer might be promoting, leading to the affiliate’s earnings ceasing overnight.

MPP is the only regulated program that actually pays for all leads. What differentiates this program from others is that it does not link commissions to deposits or trading activity. Not only are the commissions linked to the company’s sales funnel, choices are also given to affiliates regarding when they want to withdraw their payment, including the choice to cash out on a weekly basis.

In addition, there are different commission plans to choose from, such that affiliates can select a plan that best suits their needs. Different plans also pay according to each partner’s expertise. ATFX offers tailormade plans, based on existing statistics, for the company’s partners.

Another key advantage of the MPP program is that it offers multilingual, localised support for both its partners and clients. This support is available 24/5, in the language that the person is most comfortable in. The company takes pride in the excellence of its support, offered through the wide experience of the team, which can help mentor new partners. The best part is that the ATFX system can work on its own, making the process smooth and seamless.

ATFX is changing the way affiliates think about commissions, while providing a secure way to introduce clients and earn from it. The commission payments are equivalent to that offered by other forex brokers but the difference with ATFX is that introducers are “truly” paid for leads, while being assured that they are in a program that has the best interests of affiliates as its top priority. ATFX offers attractive spreads and accounts for traders, with the entire customer on-boarding process being funnel-based and linked to the MPP.

ATFX’s MPP is a 100% bespoke program that is tailored to comply with European regulations. The biggest advantage is that forex affiliates, especially in Europe, get to work with a regulated and compliant broker. The affiliates also gain peace of mind because ATFX is regulated by CySEC and registered with the FCA. The company is both MiFID II and CySEC compliant.

Discover more about the revolutionary new MPP from ATFX.

HIGH RISK INVESTMENT WARNING: Trading Foreign Exchange (Forex) and Contracts for Differences (CFDs) is highly speculative, carries a high level of risk and may not be suitable for all investors. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin.

 

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