In “Loyalty Programs: Marketing for FX Brokers in the Age of Advertising Bans” and “Marketing for forex brokers: MT4/MT5 PAMM and MAM Software” we explored how forex marketers can use loyalty programs and money management services as tools to attract new clients to their brokerages. Now we shall look into social trading services. By diversifying your offer with new services you can attract a completely new audience of potential customers.
Introducing social trading services is a great way to increase your trading volumes while increasing your clientele. Traders are always on the look-out for new strategies, especially when they just begin trading. Such clients are more likely to try out social trading since they do not have to trust their investment to portfolio or MAM/PAMM account managers. Instead, they configure copying, which can be turned off at any time.
What is social trading?
Social trading is a form of trading where investors observe and copy trading strategies of more experienced traders to learn more about trading or to diversify their investment portfolio.
Advantages of Social Trading
Copy trading is an appealing technology that allows forex brokers to expand their offering and to ultimately increase transparency of their operations since clients will be able to follow trading results of the top-performing traders. Let’s go through the advantages of introducing social trading services to your brokerage.
1. Create an edge over the competition
Despite social trading being popular among traders, not as many brokers provide such services. Introducing copy trading system will open new markets for your company and bring in new customers.
2. Open more new accounts
Many newcomers are hesitant to start trading, or even register a demo account because forex trading has a rather broad knowledge base that needs to be acquired before you can adequately start trading. That’s where social trading comes in place. Allowing your new customers to activate a demo copy trading account will provide them with the first profitable trades and allow them to learn from your best traders.
3. Improve account conversion rates
The conversion of demo trading accounts is generally rather low. The closure of live accounts in the first month of trading skyrockets when the first deposit is lost. Social trading might make a passage for traders providing a safer way of getting into forex trading. Getting started with social trading is so much easier since you do not have to even choose the currency-pair, or get accustomed with UI of a trading platform. A new trader can subscribe to one of the top performers straight away after downloading an app, or registering an account with a chosen broker.
4. Increase trading activity from existing clients
An existing customer may also find copy trading a great addition to their trading strategy. A variety of subscription modes will allow them to tweak and optimize the copied trades yielding better results and higher trading activity.
Social Trading Demand
Social trading technology marks its 10th year in 2019 and the demand for it is nowhere near depletion. The term “social trading” alone is searched over 18 000 a month on Google. There are brokers that focus exclusively on social trading services, such as eToro and ZuluTrade.
How to Attract by Social Trading
1. Align social trading with your forex education campaign
Social trading service may be a great helper in your forex education endeavours since it allows newcomers to see the performance of your current clients as well as to try the very same strategies by copying trades. Besides providing obvious benefits like increase of trading volumes, it makes your lead generation funnel so much stronger. Social proof is always a powerful player when we make any purchase decisions. This time, it goes far beyond reviews websites and forum comments. This time, it is practical.
2. Display traders statistics and subscribe buttons on the website
In most cases, the sales funnel entry point is the website. Yes, you may include screenshots with trading statistics of your top performers, but what social trading enables you to do is to make it interactive and optimized for conversions. The traders will be able to dive into trading strategies of providers and to choose thoughtfully. Registering for such services is also rather simple and requires no more than a couple of clicks.
Social Trading Solution for MetaTrader 4 and 5
MT4/MT5 Social Trading from Brokeree Solutions is developed to aid brokers in building their own social trading system. The turnkey solution allows quick and effortless integration of frontend and backend components. Social Trading software is enabled by Ratings & Statistics module that is used to display traders’ statistics and increase service conversions.
The solution is available for full-licensed MetaTrader brokers as well as white-labels and is fully compatible with Brokeree’s Liquidity Bridge and Dealing Desk solutions.
- Give clients an incentive to trade by offering a variety of copying modes
- Manage rewards for successful providers with flexible performance fees
- Count on immediate service launch upon installation
Request a demo for MT4/MT5 Social Trading solution via firstname.lastname@example.org, or by using a Live Chat on the website.
The demand for copy trading remained consistent for the past 5 years averaging at 18 100 searches per month for a single keyword “social trading”. Expansion of the brokerage service offering with social trading software may attract new customers as well as the increased trading activity of your existing customers.
By displaying traders’ statistics on your website, you will be able to increase brokerage transparency and to maximize your website conversion rates and move potential clients from demo accounts to live ones. If you have a forex education system in place, enforce it with social trading service to share your customers’ success with newcomers.
Are you a marketing manager in a forex brokerage? Let’s connect and find new ways of promoting your brokerage services. Anton
Originally published at brokeree.com.