The growing influx of millennials into the financial markets presents a massive opportunity for brokers. It is important not just to attract new traders but to retain them too
Millennials form the majority of online traders at 58% globally. Millennials are also the generation that prefers taking active control of their finances. The growing influx of this generation into the financial markets presents a massive opportunity for brokers. But, the key to making the most of this opportunity is not just to attract new traders but to retain them too.
For instance, overtrading and poor risk management are popularly said to lead 90% of new traders to lose 90% of their holdings within 90 days! The culprit is a lack of knowledge coupled with an eagerness to make quick profits. As a responsible broker then, your role is to support your traders to survive the markets for the long term.
Here are the top 7 things that can help you do just that.
Providing traders with experience- and interest-appropriate resources can help engage them and encourage them to trade. A novice trader is unlikely to understand complex signals or build complex strategies. Therefore, a platform that supports easy-to-understand and apply signals, along with learning resources for traders to interpret those signals, can be a huge help. Traders with positive experiences are likely to trade more often and continue for longer.
Encourage the use of demo accounts to familiarise traders with the trading platform. Add copy trading to this mix and you can help traders learn on-the-go, while trading the markets. This builds trader confidence with trader communities on the brokerage platform sharing insights with each other. They develop a group growth mentality, giving cumulative results for the brokerage.
Help traders understand that every mistake is an opportunity to learn. Also, help minimise those mistakes by promoting the use of risk management techniques, such as stop loss and take profit. Providing the right education and risk management tools can help you gain the trust of your clients. Additionally, it allows your clients to build a trading psychology that prevents emotions from interfering with trading decisions. So, consider making risk calculation resources and tools available for traders to make informed decisions.
This helps traders evaluate and improve their trading strategies. It provides insights into their portfolios, and their daily, weekly, monthly and annual performances to help them plan for the future. Make the most of technology to offer analytical reports on strategy accuracy, hit ratio, and improvement suggestions. Feedback on what and how to improve is essential, as beginners rely on you. Prove to them you deserve the trust.
Intuitive design, smooth performance, and customisability are the key characteristics of a great user experience. Features such as quick order placement, direct trading from charts, and unique signals help traders discover better trading opportunities. Visible action icons and account settings help them get comfortable with the platform. Another crucial aspect is the stability and consistency of platform performance.
Make technical indicators and news updates available and incorporate calendar events to ensure a seamless and comprehensive trading experience for beginners. While doing so, don’t overload the client with information and unnecessary market noise. As beginners probably do not know what is relevant to them, infobesity can be overwhelming.
Language is a medium to connect with the trader. Providing multilingual support online and offline is a great way to enhance your reach. Advanced tools can seamlessly translate reports and signals into multiple languages to serve the regions where you offer your services. Trading platforms can integrate advanced plug-and-play tools to include multilingual support without any downtime.
At Your End
Competitive offerings, transparent fee structures, and most importantly, the bespoke experience can uplift your brokerage’s potential manifold.
The global online trading market is expected to reach $14.36 billion at a CAGR of 7.0% during 2022-2027. Brokerages can tap into this opportunity by augmenting their platform with trader resources. Educated and satisfied customers mean enhanced trading activity and improved broker revenue. Autochartist is one of the leading technology partners that enable brokerages to employ technology strategically to meet the information and education needs of their traders. Contact us today to learn more.