Social trading solutions are excellent for involving clients and increasing trading volumes. On one hand, they allow experienced traders to monetize their trading skills and make trading another source of income. On the other hand, newbie traders and those who don’t want to spend time on trading can entrust their funds to start trading right away instead of postponing it for an indefinite period of time.
However, any solution should be applied wisely to bring the maximum value it is capable of delivering. So, how can forex brokers leverage social trading to attract and retain more clients?
1) Educational content. Offer education on your website that explains the mechanics and benefits of social trading. You could create webinars, guides, and tutorials that demonstrate how your social trading tool works.
Below are some examples of educational content from well-known forex brokerages.
2) Variety of leaders. Offering a choice of leaders with different strategies and approaches provides your clients with more freedom and opportunities to earn, as well as adds a gamification element. Therefore, more leaders mean more followers. Conversely, a larger audience of followers makes your brokerage more popular among potential leaders.
- One tip to grow the initial base of leaders is to use a cross-server social trading solution that connects all your servers and accounts from there into a single system.
- Another tip is to allow leaders to work on their own terms: let them set the fees they want to receive from successful trades. This will motivate them significantly.
3) Transparency. Leading social trading solutions emphasize transparency by showcasing leaders’ profiles, including trading history and performance metrics with demonstrative chats. This level of transparency helps clients make informed decisions when selecting leaders to follow and emulate. Clients appreciate this openness and are more likely to engage with trusted brokers and leaders.
4) Risk management. Empowering clients to control their exposure and manage risks builds trust and confidence among your clients. Setting stop-outs and maximum trade sizes not only mitigates risk but also empowers clients to feel in control of their financial destiny.
5) Promotions. One of the best advertisements for anything is people talking about it. Stimulate your existing clients to talk about your social trading offering by rewarding them.
For example, a cheap and simple Flex Rebate tool allows your introducing brokers and other agents to earn a commission on trades performed by agents they brought in. It supports up to 9 levels of agent commissions.
Additionally, Extra IB Compensation allows you to launch promotions for your agents by offering rewards based on milestones they achieve.
By implementing these tips and solutions with features enabling the application of these tips, you can leverage social trading as a powerful tool to attract more clients, increase trading volumes, and enhance customer satisfaction.