In the ever expanding and fiercely competitive online, retail forex landscape, forex brokerages are constantly faced with the challenge of differentiating their presence and expanding the range of their offering in order to retain their existing client base and also attract and successfully convert aspiring new traders.
With this in mind, the present post is dedicated in showcasing the multiple lucrative opportunities and benefits to be had for forex brokerages that choose to integrate an Investment Platform alongside their main trading software, as such money management software is instrumental towards revenue boosting and allows brokerages to capitalise on current trends and effectively meet the challenges and benefit from the opportunities arising by crisis periods, such as for example the current pandemic.
Copy Trading gaining traction means more opportunities to be had
What is social trading and why is there such a rise in its popularity?
Social trading is essentially a form of trading which allows investors to observe and then copy or mimic the actual trades or trading strategies of other, usually more experienced traders. By doing so they not only learn more about trading in general, but they are also able to effectively diversify their own investment portfolio.
In recent years, copy trading has become hugely popular, aided in part by the overall upsurge of all types of online social networks which attract the participation and endorsement of hordes of users globally. The creation of a community of traders that can share their ideas, skills, insight and strategies leads to a win-win outcome for all involved and results in improved trades.
Copy trading is indeed perhaps the smartest available way to trade, especially for novice trades, who though they want to invest and increase their capital, lack the time or experience to go it alone. Inexperienced trades can effectively and successfully access the financial markets via copy trading, drawing on the experience and proven skill set and track record of more seasoned, experienced traders, how both how to analyse the markets and interpret forex signals. Following and copying a successful, experienced trader, allows new traders to minimize their risks and provides with an extra reassurance and the safety that they are not trading alone or swimming against the waves, trying to avoid the sharks. On the other hand, experienced traders whose trades and strategies are copied can also benefit from the knowledge sharing through a traders’ community, while also enjoying an increase in their profits based on those who follow them and the successful trades they execute.
For these reasons, copy trading services are in high demand and brokerages that opt to offer such services stand to benefit greatly, as such an addition will not only translate in additional traffic but also to additional revenue being directed to their brokerage.
Turning a crisis into an opportunity: attracting new customers to your forex brokerage
The current Covid-19 pandemic and the financial and economic crisis that comes as pack and parcel with it, has highlighted once again the dire need for all business to be able to change and adapt both their operations, offering and marketing approaches in order to effectively deal with the new reality. Though many sectors of the economy are indeed facing huge problems due to the pandemic, the forex industry seems not only to be coming out intact, but also that it actually stands to benefit from the new landscape, provided it effectively exploits the numerous opportunities for revenue boosting that are emerging.
According to many analysts, online retail forex, which has always been an online business, is obviously not only not affected by the pandemic, but actually favoured by it. Proof of this is the fact there has already been a recorded increase in trading volumes online, which in turn leads to increased demand for forex and crypto-currency trading services from brokerages. Moreover, the Covid-19 crisis has brought increased volatility across the markets and this is also favourable for all participants in all types of financial trading, as such market conditions open up many lucrative opportunities to be had.
Thus, the potential for forex brokerages to attract more business and more traders is huge and new client attraction could in fact turn the crisis from a potential curse to a real blessing.
What brokerages will need to do in order to benefit from the possibility of new client attraction in the post-crisis era, is to adapt their offered services and the way they market them in a way that corresponds and it is better tailored to the new circumstances such potential new customers are now faced with. In other words, with many people losing their full-time, permanent jobs, there are many more people around looking for new ways to make money and willing to try it out in the world of trading. Also, people who had previously earned a regular salary and used part of their savings for trading and investment, may now have become unemployed or earning a reduced pay-check. Such people would be easy to convince to attempt to turn their trading hobby into a full-time endeavour.
Thus, the smart move on the part of brokerages is to offer exactly this opportunity by launching and promoting new and innovative investment platforms, services and products that traders could endorse as their new career path.
Adding such an offering makes a lot of sense on the part of a forex brokerage, as launching and promoting an investment platform software is a bulletproof method to immediately achieve:
- Gaining new types of clients and extending your current customer base
- Dramatically improving conversion rates for your brokerage
- Boosting the overall lifetime values of your traders, existing and new
- Attracting professional money makers, thus opening up further opportunities
At start-business-online, we can offer interested brokers with the chance to gain access to an innovative, credible, robust and proven to solution in the form of an investment platform software that in a simple to setup, automated manner, caters for the needs of different types of clients, through copy trading, PAMM accounts and MAM (multi-account-management) accounts.
This Social Trading and Investing platform, with its many features, might be exactly the tool you need to take your forex brokerage to the next level and take advantage of the current favourable conditions to attract more clients and increase your earnings. To find out more about this amazing opportunity contact our team today, for a demonstration of the investment platform, or to further discuss how launching new investment products in your brokerage will bring you one step closer to success.