LeapRate Exclusive… It looks like there indeed is a downside to the rapid runup in cryptocurrency trading at Retail FX shops.
With the surge in interest from retail traders to trade bitcoin, ethereum and their various crypto cousins, some FX brokers – always welcoming new clients, of course, alongside increased trading volume from existing clients – are having issues dealing with the multitude of back office challenges the increased activity brings.
Along these lines, LeapRate has learned that AvaTrade – one of the early regulated FX brokers in offering crypto trading to its clients – is halting taking what it defines as “crypto traders” from its various affiliates.
As of tomorrow, AvaTrade stated that it will stop paying affiliate commissions for new “crypto traders”, defined as customers with trading volume containing 75% or more of cryptocurrency instruments.
Also, for existing traders, AvaTrade is going to cap its Revshare payouts on cryptocurrency instruments at a maximum of 20%.
AvaTrade sent out a note today to its affiliate network on the matter, full text follows:
Changes in Our Cryptocurrency Terms and Conditions
Firstly, we would like to thank you for taking an active part in AvaTrade’s success. The past couple of months have truly been exciting, with the growing popularity of cryptocurrency CFD trading.
Naturally, these positive changes come with some drawbacks; our back office is currently dealing with a growing number of requests that have led us to make a very tough decision and reduce customer acquisition so that we can focus on customer support. This decision, we feel, will reflect the ethos of AvaTrade – to put our customer service above all else. Rest assured we are working around the clock to address these issues and further maintain the standards that made AvaTrade an industry leader.
Therefore, until further notice, we are putting all cryptocurrency traffic derived from affiliate partnerships on hold, regardless of the deal type.
As of Monday, December 18, 18:00 GMT:
- Ava will stop paying commission for new cryptocurrency traders.
- Cryptocurrency traders are customers with trading volume containing 75% or more of cryptocurrency instruments.
- For existing traders, our rates for revenue share deals on cryptocurrency instruments have changed and are now at a maximum of 20% (unless already communicated).
- For hybrid deals, AvaTrade will not pay the CPA portion for customers that are cryptocurrency traders as defined above.
Should you have any further questions, please contact your affiliate manager or email us at [email protected]
Thank you for partnering with us!
Ava Partner Team