Demo accounts – The holy grail for brokerages?
More than 34% of potential traders abstain from trading due to fear of losing money. Forex and Binary Options Demo accounts are a great way for traders to become familiar with a new platform and/or the market, test their trading strategies and practice their trading skills, without having to risk their hard-earned cash. In today’s […]
More than 34% of potential traders abstain from trading due to fear of losing money. Forex and Binary Options Demo accounts are a great way for traders to become familiar with a new platform and/or the market, test their trading strategies and practice their trading skills, without having to risk their hard-earned cash.
In today’s competitive market, demo accounts can also be a phenomenal tool for brokers to promote themselves and lure traders into opening real accounts and when used wisely, can boost a trader’s confidence and encourage them to trade for real. How can brokers get the most out of demo accounts?
Easy Registration. Allow traders to easily register for a demo account by asking for as few details as necessary. Allow them to transition from demo to real from within the trading platform with in-app or in-platform registration. If you require traders to leave the platform to register and then come back in, you may lose them on the way.
Easy Transition. Enable traders to transfer their trades, preferences, social profiles, etc, from their demo accounts to their real accounts. Once a trader has established a trading portfolio and has selected the masters they wish to follow or copy, they’ve invested time and effort and are likely to stick with the same platform sin order to avoid having to repeat the effort.
Loads of features. The more features you offer demo traders, the more likely they’ll become engaged and be successful in demo, which in turn entices them to become real traders. Social trading for example, helps new traders feel confident and achieve success by following and copying more knowledgeable masters. A positive demo experience is more likely to turn a demo trader into a real trader, so make sure you add features that will help traders have a successful trading experience.
Automate. A trader is most likely to convert from demo to real when he or she is engaged in the platform, rather than when getting a call from a sales rep during a business meeting or family dinner. With automation, the need for human interaction becomes minimal with the use of automated, pre-scheduled messages and CTAs, which accelerates the conversion process.
When human interaction is needed, the sales rep can make sure to contact the trader at the right time, because he can follow the trader through the funnel and give them the right push at just the right time.
CTAs. By implementing the right messages and CTAs, a broker can guide the trader through a conversion funnel that will culminate in successfully turning a demo client into a real trader. Use CTAs to encourage traders to open new positions, set SL/TP levels, follow and/or copy masters, watch instruments, etc. and with every successful trade, prompt them to turn their virtual funds into real funds by opening a real account.
Mitigate A Negative Experience. As we mentioned above, having a positive experience is key to have a trader convert from demo to real, but what happens when a trader is on a losing streak? Implement CTAs that will prompt the trader to turn their losses around by offering help from an expert at the help desk or by engaging in social trading and copying a winning master.
Demo accounts have gone from being a great added value for traders, to a standard staple offered by most if not all brokers, so make sure you implement tools to stand out in the crowd and make the most out of your demo account traffic.
This article was compiled and represents the viewpoint of Yael Warman, Leverate.