Affiliate Trading in Dubai and Online Training Scams

Affiliate trading is an online marketing model specific to the financial trading industry. Individuals or companies, called "affiliates," collaborate with online trading platforms to promote their services. In exchange for their marketing efforts, affiliates receive commissions on trading activity generated by the clients they refer. This model plays a significant role in the growth of the online trading industry, allowing platforms to reach a wider audience through affiliate partners.

Additionally, it's also important to note that many French influencers based in Dubai play a key role as affiliates in the trading industry. These influencers use their social media visibility and credibility to promote various online trading platforms or training courses. Their influencer status allows them to reach a wide audience, and their marketing efforts are often compensated based on referred clients and commissions generated.

However, in some cases, they also take advantage of Dubai to commit their offenses, as it is strictly prohibited in many European country, in particular, to trade for a third party, unlike in the United Arab Emirates

Circumvention of the legislation therefore occurs from Dubai and through certain social media channels, including Telegram channels.

However, it is crucial to distinguish between affiliates who act ethically and transparently and those who may be involved in questionable practices. Integrity and compliance with regulations remain important priorities in this industry.

Thus, it is important to first understand the affiliate trading regime (I) in order to address its many abuses (II).

I – How Affiliate Trading Works

A – Methods of Registering for the Affiliate Program

To register for the affiliate trading program, it all begins with creating an affiliate account on the online trading platform's website. In some cases, identity verification may be required, primarily for security reasons and compliance with applicable regulations. Once registered, the affiliate submits an application to the affiliate program, which is carefully reviewed to determine eligibility. Once approved, the affiliate gains access to a variety of marketing tools provided by the platform, such as tracking links, advertising banners, and performance reports.

Furthermore, another method of affiliate marketing involves some platforms offering comprehensive training and dedicated support, helping affiliates optimize their marketing strategies to sell their products and develop trading techniques through so-called "demo" accounts.

Indeed, online trading courses use demo accounts to teach trading concepts and skills. Learners create free demo accounts to practice without risking real money. They gain experience trading with virtual money, while gradually learning the basics of trading and risk management. Demo accounts offer a realistic simulation of live trading, with analysis and feedback to improve skills. However, it's important to remember that live trading involves real emotions and risks, requiring a thoughtful transition after demo account training, and can take years to master.

B- Marketing Strategies to Attract Affiliates

Affiliate programs use attractive commissions as a major incentive to encourage affiliates to join. Content marketing, including the creation of educational content on trading, is frequently used to attract specifically targeted affiliates. Partnerships with influencers or trading experts play a key role, as they recommend the platform to their own audiences. Furthermore, registering on affiliate networks significantly expands reach, allowing for the attraction of a growing number of potential affiliates. Furthermore, referral programs are designed to reward affiliates, creating a snowball effect within the network. Therefore, in some cases, affiliates are able to recoup losses.

Platforms provide high-quality marketing resources, such as banner ads and videos, to facilitate affiliate promotion.

Finally, it is essential to note that the platform's transparency and solid reputation play a decisive role in attracting affiliates keen to promote trusted trading services.

II - Misuse of the Affiliate Trading System

A - A Widespread Fraud Model in Dubai

Affiliate trading, a legitimate marketing model, can sometimes be misused by malicious individuals and scammers. A worrying trend involves scammers, who, in some cases, operate from destinations such as Dubai, in the United Arab Emirates. These scammers set up deceptive training programs and prey on people looking for quick profits. They promise quick and substantial profits through affiliate trading training, often enticing candidates to purchase expensive courses, claiming they contain secrets or foolproof strategies for success in affiliate trading. Victims of these scams suffer significant financial losses, as well as emotional and personal consequences, such as shame and distress.

Authorities in Dubai and other jurisdictions have stepped up their efforts to combat these scammers, but the international nature of affiliate trading makes crackdowns more complex. It is imperative for individuals interested in affiliate trading to exercise caution and conduct thorough due diligence before investing in training or engaging with purported experts in Dubai or elsewhere. Due diligence is essential to avoid scams and the misuse of the affiliate system by malicious individuals. Furthermore, it is worth noting that online betting sites are sometimes used in a similar manner, with scammers offering foolproof methods to make money, highlighting the importance of caution when one person solicits another with a promise of winnings that seems too good to be true..

B – Referral Methods and Scammers' Remuneration

Some affiliate trading, online dating, and investment scams are orchestrated by malicious individuals who use a variety of devious methods to attract customers. For scammers, dating sites, Telegram channels, and fake trading sites are all channels for attracting potential victims. Scammers invest time creating fake profiles on legitimate dating sites, establish online relationships, and then direct their victims to fraudulent trading platforms. Telegram channels are becoming increasingly popular for disseminating information about fraudulent trading, attracting a large and often gullible audience.

Furthermore, scammers may create fake trading sites that closely mimic legitimate platforms, misleading customers about the nature of their activities. To exacerbate the problem, some influencers, including those from reality TV and other fields, use their fame to direct their audiences to dubious Telegram channels or trading platforms, profiting from affiliate commissions.

Regarding compensation methods, scammers collect commissions on their victims' investments, charge membership fees for fraudulent Telegram groups, and promise to share non-existent profits. Some victims may even be subjected to credit card fraud. When faced with these scams, vigilance and due diligence are essential to identify potential fraud and avoid financial and personal losses. It is crucial to verify the legitimacy of platforms and individuals, be wary of promises of quick profits, and consult reliable sources for financial and online dating advice..

Akram Cheik, Lawyer