When Forex Traders Quit | Infographic
Research on Retail Forex Trading
Retaining your forex clients is essential for your brokerage’s success. It’s much cheaper to keep your existing clients than to use advertising to attract new clients.
In order to keep your clients, it’s important to know why and when they tend to stop trading. Research published in 2014 offers some insights that we’re passing on to you. The details from the infographic below come from Uninformative Feedback and Risk Taking: Evidence from Retail Forex Trading.
The data from this study is based on over one million trading transactions made by just over 3,100 traders. As you can see, this study shows that traders are active for about six months. Interestingly, in a 2016 study, published as Retail FX Trader: Survey Result, 50.4% of forex traders say they’ve been trading for more than four year.
This contrast may indicate that traders are likely to switch from one broker to another after about six months, especially if they’ve experienced losses while trading with a firm.
Considering learning more about how to retain clients and investing in back office software that can help you serve those clients better.