By the time it takes for a trader to make a deposit – and for those funds to be credited to their account, a whole day passes.
Withdrawals can take roughly 29 hours to settle. Even longer in some cases. In an ‘every minute counts, get it done yesterday’ kind of environment, why doesn’t money move faster in Trading?
Swedish fintech, Trustly, explores why in their new report.
Fast, frequent payments
Trustly surveyed 2700 traders across six European markets for this report. Across the board, these traders said they needed the ability to make fast, frequent payments.
Trading is all about taking advantage of opportunities in emerging markets and getting the best prices. This puts a greater emphasis on speed and convenience in Trading.
Many traders reported several missed opportunities due to payment delays.
The big drop-off
Acquisition costs are pretty hefty for brokers looking to onboard more traders to their platform. But, around half drop off between registration and first trade.
Brokers need to meet the increasing challenges of converting potential customers and getting them to deposit.
Trustly’s finding show that timing is essential to traders, and offering timely payments can make all the difference when it comes to customer acquisition, retention and loyalty.
Support lines are busy and it’s expensive
An unbelievable amount of traders have to contact support regarding delayed clearance of funds.
This not only causes operational costs to spike, it also creates a negative brand experience.
By offering faster settlement of funds, brokers are able to decrease their costs and attract and retain more traders.
Payment methods have a role to play
Offering the right payment methods and processes can help speed things up for traders looking to act more swiftly. An overwhelming amount of traders said they use manual bank transfers to top up their account.
Yet, this type of payment method comes with a lot of hold-ups causing frustration. Not to mention the room for error when having to manually enter IBAN and reference codes.
By choosing a payment method that not only offers fast payments, but also automates the process, trading platforms can see a massive jump in new customer acquisition.
Around 76% said that speed of deposits and withdrawals affect their choice of platform.
Fast payments lead to higher conversion
Traders are much more likely to invest immediately once their funds are credited to their account. Trustly’s survey shows that 61% would be more satisfied with their trading platform if offered instant payments.
Traders would also add more funds to their accounts and deposit more in this instance. A vast majority said that they would also hold more funds in their account if offered instant withdrawals.
These generally take over 24 hours to settle and as a result, traders hold less money in their account.
By giving traders fast access to their funds, brokers would be giving them more reassurance, and thus, enticing them to spend more.
Download the report
Trustly’s report on Trading covers a lot more of the current Trading landscape and where brokers can look to for improvements.
Speed and convenience are the key customer experiences that seem to be somewhat lacking and in an industry where timing is everything – injecting speed and automation can do wonders for any trading business.
Disclaimer: The content of this article is sponsored and does not represent the opinions of Finance Magnates.