How Forex Brokers can Attract New Customers in a Crisis
Author: Rosemary Barnes
The subject of Covid-19 is a much discussed topic and many businesses have had to face the inevitable eventuality of an economic downturn together with the repercussions that will likely come along with it. But is it all gloom and doom? It seems not. While it’s true that a fair share of businesses' fate may hang in the balance, the forex industry appears to have come away somewhat unscathed. In fact, there has been an observed increase in online trading which has fuelled a demand for Forex and crypto-related services from brokerages. How to attract new customers in a crisis need not be a cause for concern. In fact, the evidence is that the potential for attracting more business has never been more evident. B2Broker CEO, Artur Azizov, was recently asked by Finance Magnates for his views on how COVID-19 would change the FX/CFD industry and the financial performance of brokers. This is what he had to say: “I believe it will impact the industry in a positive way. Forex was always an online business, but now it’s going faster because many people have lost their jobs and are looking for new ways to make money. Last month trading volumes increased by up to 50% compared with the previous month and many brokers have reported the same thing. Volatility on all the markets has gone crazy which presents a great opportunity for all participants.” So, how do you attract new customers in crisis? It’s clear that Forex businesses need to adapt the way they market their products according to the changing circumstances of their clients. Some people, for example, who may have had a full time job pre-Covid-19, with a regular salary and used part of their savings for investment, may now find themselves either unemployed or on a reduced salary. Therein lies the opportunity to turn a hobby into a full time job - and this is how as a brokerage, you can offer these people a new career opportunity. In this article, we focus on a popular investment model with proven results that enables you to do just that.
Offer Your Clients a New Career with Investment ProductsAs we have seen, the current conditions are ideal for attracting more clients to your brokerage. You can do this by offering investment products via an Investment Platform - an automated investment service as a new full-time career for your traders. These products may already be familiar to some as Forex copier software, PAMM account software and Forex multi account manager software. Here’s how it works: Offering your customers a new career path can be more beneficial than low spreads and the usual commissions. An Investment Platform can be set up in one week and as illustrated, helps brokerages increase their earnings. There are several good reasons to launch investment products in your company: ✔ Improve Conversion ✔ Attract New Types of Clients ✔ Increase Lifetime Values of Traders ✔ Attract Professional Money Managers
B2Broker Investment PlatformB2Broker’s investment platform offers 3 account types for different types of clients; Copy Trading, PAMM and МАМ.
Copy TradingCopy trading works whereby successful traders open master accounts, deposit into them with their own funds and then trade in the same way as if it were a simple trading account. Trading history from that account is collected into a database and available for other people to view on the leaderboard. Investors or amateur traders simply open investment accounts and subscribe them to master accounts. Once subscribed, users start receiving signals for opening or closing positions which are executed automatically. Copy trading is ideal for amateur traders who lose money when they trade by themselves but want to learn how to make profits by following successful traders. In this case, they can also use the account as a trading account, with no need to spread money between 2-3 4 accounts. Hence, they can be passive until they are ready to trade. Furthermore, signal providers don’t need to change their strategy or adopt a new role as the deposits/withdrawals of investors do not influence accounts. They simply continue trading on the same account but get paid at the end of week or month. Copy trading is also suitable for professionals who like to trade with their own money on a small account, and are looking to boost their earnings by selling their signals, and of course, investors who want to create a source of passive income on the financial markets.
PAMM (Investment Fund)A PAMM account is the most popular account type for money management. It is a model where all investment accounts are combined into one big trading account and is used for running investment funds by individuals or institutions. A money manager trades on one big account and all investors receive profits and losses in proportion to the size of their accounts. PAMM accounts are ideal for HFT traders, investment funds and professional traders. The platform works by collecting all trading statistics available on the leaderboard. Clients simply need to access the platform, choose a money manager and invest in that account. While investors are not actually able to trade on their investment accounts, they can monitor their performance in real-time.
МАМ (Multi Account Manager)
This product is suitable for professional money managers who want to activate and deactivate particular investment accounts from time to time to skip new trades. MAM is a copier based solution; investors’ accounts are not combined into one big trading account, rather, they maintain their individual accounts. Investors are not able to trade on investment accounts as they are in read-only mode.MAM accounts are ideal for professional money managers who already have a pool of investors. This is also a good solution for investment funds and proprietary trading companies where two or more traders are looking to manage one investment pool which can then be managed by different automated or manual strategies. MAM is the most popular account type in countries with strict regulation.
Investment Platform Key Features
B2Broker’s Investment Platform offers brokerages the chance to increase their revenues with a tailor-made solution that can be set up in less than a week. Features include:
- Full integration with MT4 and MT5
- Web interfaces giving your clients full control over their accounts
- History importer providing access to trading statistics in your leaderboard
- Automatic fee payment including 5 types of fees including performance, volume and subscription
- Widgets for a website so you can show traders' success without coding a single line of code
- JSON API for custom integrations
- Risk management tools for your clients including maximum drawdown for investment accounts and daily risk limits for money managers
- Admin panel and Manager’s app comprising a fully functional cabinet for investors and money managers