We’re in the Social Age. Social media is the best way to reconnect with a high-school sweetheart, meet a new partner, or show off your cooking. Unexpectedly, it became the preferred channel for politicians to reach the public and for businesses to promote their offerings and achievements. Social media’s impact on the global economy is record-breaking. Trading quickly followed suit, and a brokerage with a social network promotes democracy. It’s a modern, tech-savvy, and fair brokerage that equips traders with tools, information, advantages, and transparency to hold all the cards.
Adding social features to your online brokerage is a must. Five reasons:
Your broker needs a social trading platform. Why?
Unbiased success brings brokerage credibility that can’t be bought. Success is unarguable, as the saying goes. Once a successful trader is ranked, others will copy him. Copycats invest their own money in the strategy. Traditional brokers only risk other people’s money. Successful peers have more credibility than the brokerage.
Ask any HR manager about office life, and they’ll say “community.” People like to be part of a group, team, or cause. Brokerages that have gone social have increased client engagement exponentially because traders crave community.
Vanity & charity
Social trading isn’t just about good recommendations. Also, showing off success. It is the new social media. Traders want to share their success because it gives them a sense of accomplishment, and being named a guru makes their success official. Some want to help others reap the same rewards they have, and imitation is the highest form of flattery.
Leaderboards, missions, badges, and scores motivate traders. Once it’s social with records to break, retention soars. As long as the game is between traders and not between brokerage and trader, no regulatory conflicts arise. Gamification brings satisfaction beyond successful trades.
Easy Sales Team Conversion
Most students will copy a nerdy peer over hours of research. When they learn they won’t be punished for choosing the nerd, they all do so. Traders behave similarly. Even experienced traders can benefit from traders with higher success rates. When a social feature is backed by risk control instruments like Stop Loss and Take Profit, the sales rep’s job is easy. Your forex sales team’s workload decreases as revenue rises. It sells itself.
Your brokerage needs social? Social Trading platform lets you easily implement a social network. You’ll have an award-winning web trader, a web-based/downloadable platform that promotes user-friendly engagement on virtually any device, and you’ll have the upper hand on competing brokerages by offering traders a cool social feature.
Social trading’s ascent
Social trading is based on an algorithmic trading model introduced in 2005, the first of many to promote market entry through knowledge and trading history exchange. The algorithmic system allowed traders to share their trading records. Originally, experienced traders would alert followers via newsletters or emails before opening or closing trades. Later, trading rooms were created so traders could post their trading activity for others to copy.
As chatrooms grew, copying successful traders’ strategies became accepted, and trading communities buzzed. Traders sought ways to increase their success in the markets and benefit from successful investors’ trading decisions. This notion’s increased popularity posed a huge opportunity for trading platform providers to revolutionize what is now a must-have feature.
New technology and platforms make copy trading easier and more attractive than ever. Social trading networks usually have a popularity and success rate leaderboard to reward experienced traders for sharing their strategies. Inexperienced traders can copy existing strategies from more skilled traders and produce results equivalent to masters. A broker with a good ST network can easily increase conversion and retention rates. Such brokers profit the most.
Social trading gives your brokerage an edge in a competitive industry. Providing a service that caters to this generation’s trading habits and promotes social engagement hits the mark and may be the deciding factor for those still deciding which platform to use. Offering traders a regulated platform from Cyprus (CySec), South Africa (FSCA), or Belarus can be beneficial when offering a social network to your brokerage. Forex favors regulated brokers.
Having a social trading network to offer clients increases conversion and retention rates. Products and features that set a company apart are those that encourage communal, competitive, and rewarding engagement, which increases lifetime value and turnover.
Look at the mega giants’ formats to see how important customer engagement is to revenue.
Google’s fun and communal workspaces help employees work 14+ hours a day without noticing. Google gets what it wants: happy, dedicated workaholics. The more someone browses Facebook, the more likely they are to post, share, like, or comment. Facebook users spend hours on the platform, while ads market endless products to them.
In the trading industry, a broker who offers a social trading network will keep traders on the platform for hours, and the numbers will follow. Companies that improve customer engagement see 84% more revenue.
Offering traders a social feature can increase the average trader’s lifetime by 14% or nearly a month, trading activity by more than 50%, net deposits by 32%, and a broker’s trading volume by 40%, thus increasing the value of each trader.
Give Traders What They Want: The Best Social Trading Platform
In the 1990s, those who wanted to trade online didn’t have many options, and the few companies that did didn’t need to do much to gain customers. A company that proclaimed itself the “best trading platform” back then could draw crowds; today, online brokerages sprout like mushrooms after rain. With hundreds of platforms to choose from, traders no longer settle without doing research. Good brokers offer A-class forex CRM, multi-asset trading, easy order executions, and fast withdrawals. A broker that offers all that plus a social trading network shines. Whether you already have a brokerage or are looking to open one, a social network is essential.
True. Less-experienced traders want to copy successful traders’ strategies.. Your traders will have access to a large, active social trading community that encourages user interaction and rewarding trading. Increased conversion rates, trader lifetime, and business value will benefit your brokerage.
So-called: Social trading, copy trading, mirroring, or auto replication – traders have adopted the social network as the most relevant investment method today.
OpenForexBroker can help your brokerage implement a social trading network.
Social trading allows investors to observe and mimic the trading behaviour of their peers and expert traders. Social trading networks allow traders to compare and copy techniques and strategies to enter the financial markets with little or no knowledge.
What’s social trading?
Traders can find master investors on a social leaderboard to copy on a social trading network. Social networks offer traders transparency and precision when choosing traders to follow and copy.
How do social networks help expert traders?
Expert traders can become social trading network signal providers. They can trade with preexisting strategies and methods and collect followers’ profits.
Why do brokers use social networks?
Less-experienced traders want to copy successful traders’ strategies. Offering a social network is a great way to stay current. Creating a social community increases trader engagement, lifetime and value, and brokerage turnover and commissions.
How can my brokerage offer social trading?
OpenForexBroker provides Social trading solution for those looking to add a social trading network to their business or brand.