Social trading is one of the fastest growing innovations in the FinTech industry, taking the world of indices, currencies and commodities by storm.
Today’s brokerages assist traders by working with MAMs, hedge funds, portfolio managers, EAs, signals, etc, and in order to connect with each of these entities, a different method of integration is required, different APIs. Often, these integrations are done manually, or in the case of hedge funds, they cannot be done at all.
Social trading is coming with an agenda to bring all these entities under one roof with systems that make information easily accessible. Social trading platforms can become the center of the engine for all of these entities, in which traders and masters can both benefit through networking and sharing of ideas and skills.
Imagine all of the information from hedge funds, money managers, EAs, etc, all in one place for the trader to see, follow and even copy. This simple, yet revolutionary concept can assist brokers immensely in their acquisition, conversion and retention efforts. How so?
ATFX Institutional Business Continues to Expand: Adding a New Prime BrokerGo to article >>
Acquisition: Brokers can advertise a much wider choice of ‘masters’ to copy. Catch phrases such as ‘Follow XYZ Portfolio’, ‘come trade in ABC hedge fund’ or ‘Copy Warren Buffet’s moves on the market’ can increase a broker’s acquisition rate.
Conversion: When integrating social with automation tools, social-related CTAs can entice the trader to convert and deposit. Furthermore, a trader with little or no knowledge of trading can feel a lot more confident about starting their trading career if they can learn from a successful trader and copy the strategy of successful money managers and/or hedge funds.
Retention: Once a trader becomes a live client, a broker can activate the volumes of these traders by allowing them to copy the strategies and portfolios of successful traders. Again, CTAs such as ‘Make a deposit and start trading like Warren Buffet’ can be extremely appealing.
Brokers are already working with these entities, what social can offer is to bring the information of all of these entities into one easy-to-view platform and allow traders to follow and/or copy successful strategies. Imagine tying this social trading powerhouse with an automation tool, and you can have an automated system, packed with useful information, which optimizes acquisition, retention and conversion rates, while exponentially opening up greater trading volumes.