How to Attract & Empower New FX Traders
The first six months of a new trader’s experience with your brokerage are the most decisive; as we’ve previously reported, about 25% of new FX traders will quit in the first 46 days, and 50% will quit in the first six months. This high turnaround rate is a problem for brokerages, as attracting new traders can be seven times as expensive as retaining existing traders.
Even if your brokerage is doing well with retaining traders, a reputation of supporting and building up new FX traders will pay off in the form of even better retention, especially if you’re transparent in setting expectations. A trader who feels like you set them up for success will stick around, and return your efforts with plenty of trading.
If you’re wanting to give new-to-FX traders a good impression as both enabler to trading itself and trustworthy mentor, consider the following.
What to say
Start by creating a persona for your audience – what do you know about their current concerns or mindset? Build messaging that’s tailored to their circumstance and help you to communicate “we’re here for you”. It’s easy to identify new traders when using a forex CRM, as it can quickly build lists of new traders who have just completed their KYC documents, then segment and track them for you automatically.
Invest time in researching other brokerages’ messaging to new traders – namely their use of “starter kit” content. These content packages usually prove to be a very effective strategy. They specifically call out content pieces or guides that would be useful to those starting off in trading, and frame learning to trade as something that is doable and approachable. Forex trading starter Kits are also a great way to target SEO keywords/search terms associated with new traders who are looking for their first Forex brokerage institution.
Well-defined Fee Structure
Clearly explain your spread, fee structure and account minimums, making sure to announce any low or no account minimums as these are especially attractive to new traders. Take any opportunity to help new traders visualize some of the more forex-specific concepts of trading with graphics or illustrations. For example, this simple illustration explaining the concept of a swap fee:
Defining and rewarding success is an essential part of any successful business, and new traders’ high turnaround rate would suggest they may particularly need encouragement to persist through early setbacks/losses. How can you make them feel like their early successes have given them a “level up” within your brokerage?
Where to say it
Advertising can be tricky for forex brokers, depending on your operating location(s) and local regulations. SEO and pay-per-click (PPC) are the places to start online, and we’ve discussed social networks that may be particularly helpful for connecting with the new-to-FX audience.
For generating leads in the new trader audience, your website, client portal and social channels will be front and center. This is where educational content like the starter kit mentioned above becomes particularly valuable; you can publish portions of it on your website to target keywords and net the traffic of new traders doing online searches.
You can also use “starter kit” content to nurture and re-engage leads in your pipeline, and even translate it into powerful onboarding and introductory resources for new clients via your trader’s room/client portal
Educational content on YouTube – even simple animated videos explaining concepts (like the BabyPips illustration above) can go a very long way with an audience that spends a lot of time online. You may not have the resources to produce video content, but at the very least, research competitor brokerages on YouTube to see if they’re prioritizing this medium.