Social trading has evolved over the past five to ten years from specialised trading provided by a select few online Forex brokerages to a widely used common trading feature. This article will explain how social trading operates, why it is an effective conversion mechanism for affiliates and how to effectively market a social trading platform.
Understanding social trading
Social trading is a straightforward Forex concept where users opt-in to view other traders’ profiles. Additionally, more advanced versions might support online user message boards, comments, instant messaging, and posts. Following other traders and copying their trading activity is made possible by the social trading software tech. Trades can choose their copy trading settings thanks to the technology’s flexibility.
All risk-management tools, including take profit and stop orders, are available to social traders for use with their copy transactions. Additionally, they can tell the social trading system to initiate transactions at a predetermined percentage of another trader’s capital. For example, Trader A may duplicate Trader B at the 20% ratio. On Trader A’s site, an identical deal will be opened with a volume of 0.20 Lot if Trader B starts a certain trade with a one-lot volume.
By offering traders a commission or other advantages when their trades draw copies, social trading might well be encouraged for participants who consent to be copied. A competent social trader could be able to gain a brokerage’s online support and make extra money. Regular interaction with followers might be the initial step for a select few ambitious individuals towards being an IB or even a money manager.
The Potential Benefits of Forex Social Trading
- Study the trading methods and strategies of more seasoned traders.
- The chance to receive commissions or financial benefits.
- Become familiar with new types of investments and discover ways to trade them.
- More motivation to concentrate on your trading tactics and long-term objectives as you gain a following.
- Increase market exposures without investing much time in asset and market analysis.
- Possibilities to expand your financial professional if you learn how to teach and interact with traders who lack experience.
Possibly lower your risk of losing by imitating profitable traders. Even when mimicking professional traders, it is still crucial to follow all risk management guidelines. Even experienced investors occasionally make blunders because the markets can behave unanticipatedly.
You can strengthen your relationship with your account manager and broker if you develop into a well-known, large-volume social operator. For example, you might be able to bargain more specific benefits for yourself, such as spread reductions or account upgrades.
Can social trading be profitable for Forex affiliates?
Yes. Social trading can help Forex and brokerage affiliate partners increase conversion rates. You can anticipate making money if you properly promote it. Thanks to well-designed social trading tools and platforms, any broker can benefit from social trading. The notion that individuals can emulate other traders immediately impresses even total newbies to Forex.
When Facebook became widely used in 2006, the latest young traders were only two or three years old. Nevertheless, social media was a part of their upbringing, so for them posting and interacting online is as natural as breathing and eating.
Why may social trading platforms increase conversion rates?
- Social trading requires openness and transparency. It helps potential customers trust the brand.
- A sense of camaraderie and the chance to fit in may draw potential leads.
- A social trading system makes internet trading sound instantly enjoyable and promises that it might be a fulfilling and social pastime.
- The chance to learn from and imitate more seasoned and accomplished traders draws in new traders.
- Social trading might be a practical path to more profitable trading and greater gains.
An online brokerage can gain a “human face” that fosters confidence and enthuses users with a well-designed social trading system that receives favourable user ratings. However, instead of generic support of the advantages of social trading in Forex, many prospective customers will want to receive the most cutting-edge, highly advanced social trading tools and a thorough description of the potential advantages of using a specific platform.
How might you, as an affiliate, promote social trading?
If you wish to successfully market social trading as an associate, there are two essential prerequisites. Joining a premier CFD affiliate program administered by a licensed broker with a top social trading platform is the first step. The second prerequisite is advertising social trading as a desirable extra trading option. Don’t promote it as the only objective of online trading, and never give the false idea that it is required of traders.
Tips on how to promote social trading
- Why provide new traders with the advantages of social trading, such as a shortened learning curve, individualised mentoring, and peer support?
- Captivate seasoned traders with the prospect of receiving additional compensation when they are replicated.
- Stress that social traders may safeguard their privacy and choose not to participate in any trade at any moment.
- Spend money on social media advertising. Social trading is more likely to appeal to people already engaged on social media.
- Make an effort to include actual social traders within your creatives. For example, incorporate quotes into your narrative.
BlackBull Markets’ most famous social trading platform is BlackBull Social. It is an innovative platform connecting traders across various countries and offering automated copy trading on different instruments, including Forex, cryptos, equities, indices, and commodities.
There are different kinds of commission plans offered at BlackBull Markets, including:
- Trading academies
- Introducing Brokers
- Online Affiliates
- Money managers
- Social Influencers
- Service providers
Negotiating hybrid commission structures that suit each partner’s unique business strategy and permit expansion in the future is highly recommended. RevShare, Master Affiliate, Dynamic CPA, and CPA are all options for regular programs.
BlackBull Partners provides top-notch promotional materials, including materials for social Forex trading, to help its affiliate partners. As a licensed broker, BlackBull Markets adheres to high standards. This moral strategy also applies to affiliates, who are given complete transparency through their panels. As a result, you can keep an eye on your progress and precisely calculate your payments.
BlackBull Partners is eager to establish enduring relationships with high-calibre affiliates. To learn how to participate in the program and advertise one of the licensed and regulated brokerages growing the fastest in the globe, contact us immediately.
