What do traders really want? The multi-trillion dollar question – this article discusses how to identify individual client needs and how to actively address them, in order to improve the performance of the brokerage whilst simultaneously improving the client trading experience.
The theory of the highly esteemed (!) Hollywood movie ‘What Women Want’ states that after electrocuting oneself, one will have the ability to hear peoples’ inner thoughts.
The challenge for brokers and IBs begins in identifying the client’s requirements
Let’s put ourselves in the position of an electrocuted Mel Gibson who after dropping the hairdryer down the sink, has the magical ability to hear voices inside women’s heads. His character emancipated significantly once he listened to and understood the minds of the woman around him.
We can apply – very, oh so very loosely – the same principles to our own work in the forex industry and in our efforts to keep our customers happy.
For any broker, the optimal and simple two-step formula is to 1) listen carefully to clients and then to 2) act accordingly. Quite simply if they don’t like a brokerage, they leave.
So what do they say?
Luckily our traders are able to communicate in an open and transparent way regarding their views and opinions on trading. If they like a specific tradable instrument, they trade it. If they don’t like a specific competition, they won’t participate.
With great advancements in reporting, brokers and IBs are able to understand in some depth the behaviours of different groups of traders, and armed with this information it is then the duty of the broker to optimize.
What do traders really want and how can brokers meet their every desire? Here are the top 7 factors, according to senior support staff at FXPRIMUS, who are dedicated to ensuring their clients receive only the best trading experience.
Novice traders want to learn to navigate the markets and experienced traders want timely and accurate information in order to help with their trading decisions.
If you are a brokerage or an IB, ask yourself what kind of education you are providing to your clients and, are your tools reaching the right people? One-on-one approaches are also extremely effective in providing knowledge and confidence to your traders. Excellent trainers are an excellent investment for your firm.
2. Trader Tools
Empower your traders with the tools to help them make precise trades according to their chosen trading strategy. With a huge range of trader tools to choose from including calculators, alarms and more, brokerages can arm their traders for battle on the trading field. Also consider which platform your clients are using to trade? Ensure that it is user friendly, easily accessible and extremely efficient.
3. Customer Service
Seems simple, but by offering skilled support to traders, you are empowering your clientele. Your support team should be extremely well versed on the markets and on the trading mechanisms available to help their clients on their path to potentially becoming a successful trader.
Transparency is the best policy
Should your clients worry that your brokerage will go into bankruptcy should an unforeseen economic event ‘hit the fan,’ so to speak? Replace metaphor with action and put real mechanisms in place to protect your clients’ investment, then communicate to them regarding what you have done.
Traders want to know that the point at which they initiate a trade, is the point at which the trade is truly made. Or put simply, instant execution with no slippage. It is worth investing in the relevant technologies and global servers in order to ensure that this happens – as even tiny delays can cost both the client and the brokerage dearly.
Are your spreads as tight as they can be? This is a critical measure that brokers and IBs must offer in order to ensure retention of traders as well as acquisition.
7. Money, money, money
No surprises here! This is the ultimate motivation for traders of all creeds, portfolio sizes and ethnicities. Who amongst your clientele is successfully making money and what are their tips?
Share success stories and tips with your clients. This is not only a confidence-building measure, but a practical approach to showing your clients that you can help them on the road to success.
Money is a joint motivation for both clients and the brokerage. In the brokerage’s efforts to be financially successful, staff must also ensure that no short cuts are made on regulatory requirements, no matter how high the cost.
Transparency is the best policy here – be open and honest with the client about your offerings, both on internal and external fora.
The challenge for brokerages and for IBs alike begins only once they have identified the requirements of their clients. The provider is then required to optimize its products, services and campaigns in order to survive in the cruelly competitive industry of online trading, and to satisfy the continually evolving needs of their clients.
This article was written by Helen Astaniou, PR & Marketing Communications Manager at FXPRIMUS.com. Contact her at firstname.lastname@example.org. The author wishes to thank Kevin de Silva, Head of Sales Asia & Iis Rosiva Merrylin, Business Development Manager, for their insight and input into this article.