Both international brokers and newcomers to social trading face similar challenges: meeting regulatory requirements, ensuring the transparency of trading, and establishing a strong attractive brand.
This article delves into the ways to differentiate your social trading offering and elevate your brand presence in the market.
Why Pay Special Attention to Your Social Trading Offering?
The retail investing market has evolved and shifted away from traditional face-to-face financial advice. More and more investors are now embracing online trading platforms like eToro or ZuluTrade, marking a transition to a faster and more digital world.
Specifically, in 2023, according to Google Trends, interest in social trading was ten times higher than it was in 2013. Moreover, according to Global Social Trading Professional Market Research Report by Absolute Reports, the global social trading market is anticipated to rise at a considerable rate during the forecast period, between 2023 and 2031. For example, social trading market size is projected to reach multimillion USD by 2029, in comparison to 2022, at an unexpected compound annual growth rate during 2022-2029.
Europe (including Germany, the UK, France, Italy, Russia, Turkey, etc.) and Asia-Pacific (encompassing China, Japan, Korea, India, Australia, Indonesia, Thailand, the Philippines, Malaysia, and Vietnam) are expected to maintain their leading positions in the growing interest in social trading.
Levels of Differentiation for Social Trading
Branding
The graphical user interface of your social trading solution can be implemented as a standalone web page hosted by your solution provider, or it can be integrated into your website via an API command. In the latter case, no branding issues arise, as it is already your website.
In the former case, the branding steps are important to provide the image of a trustworthy company.
Logo and brand colors
The initial step involves integrating key branding elements such as the company name, logo, and colors. These are the first things users notice when they access the social trading area, making it crucial to link them directly to your brokerage.
Customizing URL
Tailoring the URL to reflect your brand will also convey the message that your social trading offering is reputable.
Social trading widgets on your website
A leaderboard with detailed statistics and nice chats is already an excellent tool for showcasing your offering.
Incorporate a public view of your signal providers’ leaderboard on your website to showcase their trading performance. This feature not only informs your clients about the services but also encourages them to take the first step, which is to examine charts and graphs.
CRM and trader’s portal
Integrate all solutions into a single portal so traders can use one area for multiple purposes, including additional plugins such as social trading. This integration step enhances the clients’ user experience and develops the brokers’ ecosystem.
Social trading test
Give your clients a chance to try social trading opportunities. There are several ways to do this:
- Provide your clients with demo accounts specifically to test social trading.
- Offer them a bonus that they can use to select and follow several signal providers from a leaderboard.
- Double their income from social trading during the first week of using your social trading tool.
Customizing features of your solution
Depending on the region you operate in, the trading style of your clients, the specifics of your business, and your creativity, you might need to add some tailored features to the social trading solution, like additional fees or bonuses to gamify your offering. Or vice versa, you might need to hide some features from your clients. For instance, you may not want your clients to become overly reliant on certain performance statistics, or you don’t want your clients to be able to stop investing themself.
It’s a great differential advantage if your solution provider could assist you and be flexible enough to welcome and support your custom development requests like we here at Takeprofit Tech do.
In Brief
In conclusion, integrating social trading solutions into a brokerage’s brand offers a myriad of benefits, including enhanced user experience, strengthened brand loyalty, and increased competitiveness in the dynamic financial landscape.
By leveraging tailored features brokers can effectively differentiate themselves and cater to the evolving needs of their clientele.