Activate, Retain, Reactive: Top 9 ways brokers can improve their trader numbers.
Take advantage of the opportunities and make sure that your clients know about them first.
It’s been almost two years since the pandemic entered our lives and changed the way we live and work. During this period we have had our ups and downs but the light is now finally visible at the end of the Covid tunnel. Global lockdowns have mostly lifted, although some countries are now imposing mild lockdowns, and citizens globally are eager to return to their pre-pandemic lives filled with a hunger for creation and business advancement. Some would say that we are on the verge of an economic boom on the horizon, and we tend to agree.
For many brokers over 95% of their profit is generated by only 5% of their trader base. While this distribution has sustained many brokers for a long time, what if there was a way to increase profitable traders, reduce churn, and ensure more redeposits?
In a world where people have more time to trade, but generally less disposable income, being smart about how you move traders off demos and onto live accounts and keep them profitable has never been so important. That is why we have put together a list of 10 ways your brokerage can revive traders’ motivation, and ensure they remain focused on trading in 2022.
Educate your client base
Ensuring your clients understand what it is they are looking at is key to building lasting and profitable relationships. Start with the basics. Help your clients understand the different chart patterns within their trading platform environment. It is also important to give your traders room to progress. Find a service provider who offers education and signals across all levels of trading to ensure your traders are always engaged.
While trading signals are offered by most trader tool companies, not all are created equal. Look for a company that offers traders more opportunities on instruments that they actually trade. For example, the Autochartist Trading Platform Plugins gives brokers the advantage of being able to customise their trading alerts to show only the patterns they are interested in. We also have the most extensive scanner which is able to scan dozens of instruments simultaneously, ensuring your traders never run out of opportunities. All our data is supported by an extensive knowledge base which we can share with you to help with your client education. Provide Tradeable Opportunities
Like anything in life, keeping traders motivated to trade is all about setting goals. However, trying to devise a strategy to encourage goal setting among your clients is a challenge at best. Finding enticing high-probability trades to present to your traders is one way of keeping them motivated and helping them to set new goals.
The Autochartist Our Favorites Web Component Tool does just that without the need for manually scrolling through endless opportunities. This tool displays high-probability trades when they are detected. The state-of-the-art algorithm powering this tool uses statistics to determine good trading opportunities based on their performance. These new trading targets will help traders focus on new goals which they need to achieve, keeping their attention centred on investing in the opportunities which arise in the markets.
Building a trading strategy based on your personality profile is a fundamental part of any trader’s journey. One of the easiest to identify elements of your traders’ personalities, and therefore strategies is how they handle risk Most traders fall into one of two categories, those who want to trade during periods of high volatility, and those who want to avoid it. Either way, a great way to build trust and show support for your traders is through tools that help inform their trade decisions.
A tool that is extremely helpful in achieving this goal is our Volatility Analysis. This tool provides your traders with visuals of forecast price range movements at different time intervals. This tool measures the volatility of all your traders favourite instruments across one particular day, hours in a typical day, and the day of the week level. This will set your traders up for when the best time to go in or out of a trade is, as well as helping them set take profit and stop-loss levels. . Having this information may help your traders stay in the game longer providing them with small wins and keeping them interested without impacting brokers profits.
Keep Your Traders in the Loop.
Keeping your traders engaged with any market news is key to keeping them actively trading. A good way to do so is by providing content that gives an overview of the market. However, you should be careful not to spam your traders with information on assets or instruments they are not interested in. It is also ideal to provide these reports in a language your traders understand.
Something like the Autochartist Market Overview Reports is a great way to keep traders informed. These reports can be delivered to your clients up to 5 times per day in their own language. They include information on high impact economic releases, market movements, graphed movements of currency pairs and call to action buttons directly linked to their trading platform. The best part about these is traders can decide which reports they want to receive, ensuring they are only notified about relevant events.
Target the Right Channels
It’s easy for traders to get distracted throughout the day, especially with more and more people returning to the office. In order to stay at the front of your clients’ minds, it might be a good idea to look at channels other than email. Approaches such as using SMS and Push Notifications are a great alternative and have the benefit of delivering more real-time notice of events. Autochartist can help you integrate market notifications into all of the top distribution softwares, driving traders to your platform in one click.
Statistics show that people spend far more time on their cell phones versus computers. Although this changes over longer periods of time, having mobile capabilities is a great way to give traders the push they need to get onto your platform.
The Autochartist Mobile Application acts as a great gateway to your platform from any mobile device. With our app., you can offer your traders that little extra with the convenience of a trading app. Your trade setups will already be configured, so you can rest assured that your clients will experience your pricing data every step of the way.
Help Manage Their Risk
Risk is the single biggest hurdle faced by traders and brokers alike. For many brokers, helping traders manage their risk might seem counterintuitive, however, this is an extremely short-sighted approach. Helping your traders manage their risk not only keeps them trading for longer and increases the likelihood of redeposits, but it also helps to create a lasting relationship between broker and trader, improving retention. Finally, being able to offer a tool that is designed to help decrease risk is a huge advantage when trying to reactivate a dead account or bring on a trader who is a little gun shy after losing their money.
Developing such a tool is an enormous undertaking. Especially one that can be applied across different assets. Luckily the Autochartist Risk Calculator has already been developed and tested. This tool can be used by retention teams as an interactive demonstration to show how you have your traders best interests at heart. It also gives beginner customers the confidence they need to move from a demo account to a live one, all while maintaining your profits and increasing traders lifetime Value.
Utilize Social Media
If the content is king then social media might as well be its kingdom. Many businesses across the board underutilize this powerful mode of communication. But it is easy to understand why. In order to stay relevant, gain followers, and see some kind of ROI on your social media efforts you need to put in a lot of work. Posts need to be made regularly and contain information that is not only catchy enough to grab the reader’s attention but also is able to communicate a convincing story in a small number of words. So not only is maintaining your social media extremely demanding, but it is also difficult.
Outsourcing to a social media company can be expensive, and for those in specialised spaces like brokers, bringing your account manager up to speed with the intricacies of the market, never mind your company can take more time than it is worth. Seeing the struggles of our broker partners, Autochartist developed our social media content solution. We use sophisticated AI combined with our industry knowledge to automatically post insightful and unique content to your social media accounts. All the posts are designed to fit with your branding and come at a fraction of the usual cost. This is a great way to supplement your social media efforts with interesting reliable content.
Know your Trader
Understanding who your trader is is the first step to improving your sales and retention efforts. Finding your target market in such a broad field is a challenge but there are tools that can make this process simpler.
For example, Autochartist’s partners at Delkos have a platform called RAZR. This platform helps with the behavioural segmentation of your trading book. This platform offers you critical information such as wherein the lifecycle your traders most commonly drop off. This can help you improve on the areas which need it the most. Autochartist can also help by delivering the right content automatically delivered at the right time to encourage redeposit.
To learn more about any of the tools mentioned in this article, please contact us by email at [email protected].