Pandemic is the word on everybody’s lips right now. Business owners and traders are all wondering what the long-term economic effects are going to be, and almost everybody is resigned to the fact that we may be about to face an economic downturn. However, the impact on the forex industry has so far been limited. There is clear evidence that suggests trading activity in the currency markets has actually increased as people look to capitalise on the volatility. If you operate a brokerage or are looking to get started, you may want to know how to attract customers during this time.
The secret is to market your products as a business with a real career path and progression.
Read on if you would like to know more.
The harsh reality is that many people may be losing their jobs. Therefore, they will be looking for a new one or hoping for an alternative career. The key to attracting these types of customers is by offering them exactly that, through social trading tools, like copy trading, PAMM and MAM. Attract customers by incentivising them to become money managers and give your brokerage a boost.
Copy-trading in basic terms is the process of amateur traders copying the trades of more successful traders. A brokerage who offers this function will enable successful traders to open master accounts. They are similar to regular accounts, and traders execute a trade in the usual way, using their own money. The brokerage will monitor and record the trading activity of that account and display it for all other traders to see. Beginner traders can subscribe to that master account, and when the owner makes a move, then all their follower accounts automatically place a trade at the same time. It is completely hassle-free for the beginner trader and is a good idea for any amateur who is consistently losing money but wants to try and capitalise on the markets with little input from themselves.
PAMM stands for Percentage Allocation Management Module. Once again in simple terms, PAMM is a way of pooling trading capital of which money managers or professional traders can trade. Any profits are then split and distributed. Let’s take a look at an example.
Mike, Moz and Matt sign up to your brokerage, but they have little experience or time to trade themselves. Alan and Arnie have also signed up to your services, but they are expert traders and have a proven track record for all to see. An agreement is formed between the amateur traders and the expert traders who become money managers and will trade on the behalf of the amateurs. They charge a fee for their services, all of which as agreed beforehand. The money managers will trade the pooled capital along with their own money, and the profits will be split between them all.
PAMM is a popular account option for most brokerages.
Again, this option is brilliant for attracting professional money managers. A MAM account can execute trades on behalf of an individual investor or multiple sub-accounts; however, the capital is not pooled. MAM is a copy trade solution.
Changing your marketing approach can expand your customer base significantly. By appealing to clients that have longevity and a career in mind can help you and your clients to succeed. Start a forex brokerage the right way. There is no better time to get started than now.