The year is coming to an end. That means holiday shopping, holiday parties, New Year resolutions and of course, predictions for 2016. Given my background, and where I work, we know the needs of our clients and constantly have the pulse on the market and I’d like to share a few predictions of our own regarding the binary options market.
We’ve talked about convergence quite a few times and we will continue to talk about it until we are blue in the face. Why? Because convergence is a real thing. That moment in time when circumstances meet, when the stars align and the decisions you make will impact your future, well that moment is happening now. For the forex and binary options industries, converging technologies are allowing brokers from each of the two industries to cross over to the other in order to leverage its strengths.
Brokers no longer have to think about the grass being greener on the other side of the fence. Brokers can remove the fence and make both industries their own very green backyard. As 2016 progresses, we will see more FX brokers taking advantage of binary options’ easier conversion just as much as we will see binary brokers take advantage of forex’ lower attrition rates and larger deposits.
Bots make trading simple for a new trader and when affiliates, the #1 source of a brokers’ leads, want to reduce the level of complexity for a trader, brokers answer their needs by implementing the use of bots. Brokers using bots is definitely a trend on the rise and if you are a broker, you will need to find one provider that is working on the most advanced, fully responsive, adaptive and robust API in order to meet the requirements of the binary options industry.
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A big topic in the industry is regulation. It is ever changing, it is in some instances complex and it will continue to become stricter and as this becomes the norm, more brokers will continue to get regulated, adding legitimacy to the industry.
Platforms are now at a pivotal point. The industry understands that mobile is becoming more natural to use and preferred by traders and is thus developing features exclusively for mobile and what’s more, developing platforms for mobile first.
The use of mobile makes the compliance process easier, when traders are able to upload documents straight from their mobile device. The use of push notifications, e-mail and SMS gives a broker relevance, and it makes the contact much more timely, localized and personalized, therefore creating the perfect scenario for a receptive Click to Action approach. When a trader is made aware of certain news, they can trade immediately. When traders are connected, they tend to be much more approachable. When we take about gamification, people tend to be more receptive over mobile devices.
With affiliate marketing becoming more expensive and brokers beginning to explore other marketing channels, such as mass media, the cost of acquisition per trader is going up. For brokerages to remain profitable and for this increased cost of acquisition to be viable, the funnels of conversion must be optimized, retention efforts need to be improved and trader’s LTV must be increased. In order to optimize conversion and retention efforts, we will see an increased reliance on data, bigger segmentation of traders and a greater correlation between Call to Action offerings and each trader segment.
We are excited to see a new year begin and are ready to continue to develop solutions that are in tune with the market needs. Here’s to a healthy and wealthy 2016!