With the European Securities and Markets Authority’s (ESMA) product intervention measures now in full force, brokers are having to get creative with their marketing strategies. One broker leading the pack is Amana Capital.
On Wednesday, the contracts-for-difference (CFD) broker announced the winners to its DeltaTrader program. Launched in June, the program gives the broker’s best-performing clients a chance to trade with up to $1 million.
According to a statement released by Amana Capital, in the first three months of the program, four traders met the broker’s pre-set evaluation metrics. As a result, they will each receive a $100,000 trading account.
Sadly for them, they won’t be taking home all of the cash from any profitable trades they do make. Instead, they will receive 20 percent of any money they make through their trades.
“By empowering the best traders, we are delivering to our customers not only a unique experience, but also an opportunity to develop their trading skills professionally,” said Amana Capital CEO, Ahmad Khatib. “We are looking towards the next round of the DeltaTrader competition and thank our trading community for their participation in the first round of the program.”
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As you can tell from Khatib’s statement, this is not the end of the promotion but only its first round. The next round has yet to be announced but will, according to Amana Capital, start soon.
Amana Capital – A Clever Marketing Strategy
All of this makes for a smart marketing strategy on the part of Amana Capital. ESMA’s regulations restrict the get-rich-quick incentives that many brokers have used in the past to attract clients and force them to emphasize the risk attached to trading CFDs.
Amana Capital’s DeltaTrader scheme side-steps these restrictions rather neatly. Firstly, it promotes safer, lower-risk trading – the regulator can’t criticize them for doing that.
Secondly, it’s a big motivator for traders to sign up with the broker. With a competitive element and big reward, it can tap into the same emotions that a get-rich-quick marketing strategy might but still promote risk management.
Given that ESMA has restricted adrenaline-pumping adverts, marketing schemes such as the DeltaTrader program are more and more likely to pop up. For now, we’ll just have to wait and see what brokers come up with.