There is no market as ever-changing as the forex market and with trends such as regulation shaping the industry, brokers must, more than ever before, use every tool at their disposal to optimize their acquisition, conversion and retention processes.
In the first part of this series, we talked about automation as a powerful tool to add to your arsenal. In part II, we will discuss using social trading and the convergence of binary options and forex trading in order to ride the wave of changing trends without being swallowed by the red ocean.
“Social is a great marketing and advertising tool that brokers can use to attract newbies who may otherwise feel intimidated by trading by themselves. Moreover, social allows traders to get a pulse on market sentiment by seeing for example the most tradable instruments in the trend window of our system, or seeing what other masters are doing.” Maayan Gottlieb, Senior Product Manager, Leverate
As opposed to automation, which contributes to the optimization of your ROI only from the point of conversion forward, social is a great promotional tool. Banners and other promotional material can show how much money a trader can make if they copy a certain master. Social can show transparency, which generates confidence in new traders.
Once a trader enters the conversion funnel, social tools can show a prospective trader how easily they can trade and make money. It can also show a reluctant client how much money they could have made last week had they copied a certain master, for example.
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To improve retention processes, social trading builds confidence in traders, thus attracting larger deposits. Social also has the ability to activate dormant traders and increase a trader’s activity when they are not present in the system, by enabling copying.
“As customer acquisition becomes more and more expensive in our domain, we need to be creative and innovative in our acquisition process.” Amit Sagiv, Product Marketing Manager, Leverate.
Combining forex and binary options trading under one brokerage allows you to expand your offerings while keeping the same infrastructure, therefore boosting your ROI. By offering both trading markets, brokerages can give traders variety.
Binary options typically has an easier and less expensive Cost per Acquisition (CPA). By acquiring clients through the less expensive binary options funnel, a broker can save upwards of 20 to 30% in CPA. A broker can advertise both forex and binary options trading simultaneously, this attracting a much bigger audience.
Stay tuned for Part III of this series to read about how implementing a success team and exploring geo expansion into Asia can help you boost your ACR rates.