Have you ever heard of the name Affiliate Trading? For those of you who are not engaged in forex, trading, or business, you may still be unfamiliar with this sentence.
To get to know more about Affiliate Trading, here is some information you may need. Check this out.
What is Affiliate Trading?
A Trading Affiliate is someone who promotes a trading platform using their link to invite people to register using the link provided. And that way the affiliate will get a certain commission.
Affiliate Trading is a transaction made between a company and its subsidiaries. This term is widely used in the business world, so it is natural that the layman does not really know what it means.
Affiliate Trading activities can involve all shareholders in a company because the effect is quite large.
There are also those who mean that Affiliate Trading activities are transactions carried out by capital market participants with a broad scope.
Although the word originally came from the business world, there are already many other fields that can also use the term Affiliate Trading.
Affiliate Trading Activity Regulation
Affiliate Trading activities must comply with regulations or rules set by the government. Affiliate Trading activities are usually related to material transactions, so regulations related to material transactions can use the Capital Market Supervisory Agency Regulation or Bapepam Number IX E 2 regarding Material Transactions and Changes in Main Business Activities.
There are at least 7 material transaction activities regulated in this regulation, namely asset leasing, lending and borrowing funds, participation in business entities, projects or certain business activities, selling shares, buying shares including in the context of takeovers, providing company guarantees and purchasing, selling, transfer or exchange of shares or company assets.
What is Affiliate Trading?
If Affiliate Trading is the activity, then Affiliate Trading is the person who does it. People who carry out Affiliate Trading activities are often referred to as Affiliate Trading. Trading affiliates are not only individuals, but also certain groups or groups.
Terms of Affiliate Trading
Doing Affiliate Trading can not be arbitrary, there are rules and principles that must be met first.
Before companies carry out Affiliate Trading, they must implement the principle of transparency in accordance with the provisions of Bapepam and Financial Institutions.
The following are some principles that must be applied by companies before doing Affiliate Trading:
- Affiliate Trading transactions do not exceed 0.5 percent of the company’s capital or do not exceed the nominal amount of 5 billion rupiah.
- The capital owned by the main company is at least 99 percent.
- Transactions can be carried out in accordance with the requirements of the General Meeting of Shareholders.
- Responsible in accordance with the agreement of the General Meeting of Shareholders.
- Transactions that are carried out as the implementation of statutory regulations.
Affiliate Trading On Forex Trading
Not only in companies, Affiliate Trading can also be applied to the forex trading business. There are several variations of Affiliate Trading carried out in forex trading, ranging from white label, Forex IB, Web Affiliate and many others.
For example, web affiliates are one of the most popular partnerships in forex trading. To be able to do web affiliation, both parties must register to get promotional materials and other links. If there are visitors who register then the commission will be given by the broker concerned.
That’s the explanation about Affiliate Trading, Affiliate Trading and Affiliate Trading activities in the forex trading field. Hopefully this information can add to your insight.
