Forex trading is becoming more and more popular. From veteran investors who are looking for ways to diversify to young traders who use technology and never miss an opportunity, Forex attracts everyone, and the low barriers to entry even pique the interest of people who otherwise have no connection to financial products.
Naturally, high demand and user interest are key benefits for brokers. In 2019, global currency trading reached $6.5 trillion a day and rose by 29%. In the following years, daily trading volume is expected to grow even more. But the ascension of the Forex market doesn’t bring only good news for traders, who have to navigate many challenges to stand out.
Here are some of the biggest challenges and how to manage them to gain more exposure.
Challenge #1: Fierce competition
Like we said before, the demand for Forex trading brokers is growing every day. Apart from experienced investors, Forex also attracts many Millennials thanks to its low fees and flexibility. On the one hand, this is a good thing for brokers because people are constantly looking for their services. On the other hand, high demand leads to market saturation, and you’re up against some serious competition. Especially when you’re just starting out, it will be difficult to stand out from older competitors who have been around for years and have already made a name for themselves.
Sure, you’ve already taken the first step and built a solid platform. But how do you get people to join it when your competitors are sitting comfortably on the first page of Google?
Solution: Build trust by offering a superior user experience and crafting engaging marketing content
First of all, you have to be patient. Rome wasn’t built in a day, and you won’t be able to take over your competitors overnight. To become a household name, you need to be consistent in your marketing efforts and stay committed to delivering high-quality, meaningful, engaging marketing content. No matter what your preferred channels are, you need to know your audience and give them relevant marketing messages.
Targeting is everything in digital marketing. No matter how much you invest in a campaign, if it doesn’t speak to what your audience wants, you’re throwing money out the window. For example, let’s say you have a crypto Forex trading platform. In that case, your target audience will have to include people who are also interested in cryptocurrency, not just fiat currencies. You might want to target people who are interested in low spread crypto brokers and grow your reach by focusing on SEO and PPC.
Because your competitors will probably be doing the same, it’s advisable to work with a digital marketing company that can help you lead conversion and results tracking. According to a recent study, one-quarter of marketers don’t track the efficiency of their campaigns, and that can feel like wandering in the dark.
Needless to say, there’s no shortcut for a great user experience, so don’t cut corners when it comes to your platform’s usability. Remember that your platform’s design and usability also impact SEO, so if you don’t invest in it, it will be harder to appear on the first page.
Challenge #2: Lack of trust
Although people are open to trying Forex trading for the first time, they also tend to stay loyal to a broker once they find one. This isn’t unique to Forex trading; it applies to other financial services, too, such as banking and insurance. People tend to be skeptical at first, so you need to earn and maintain their trust if you want them to come over to your platform.
Solution: Prove to them that you’re an authority in your field
One of the biggest lessons in marketing is that familiarity breeds trust. You can’t expect traders to trust you if you barely post on social media and if they only hear from you once in a blue moon. To earn users’ trust, you have to have constant online activity, and that includes more than just ads. While self-promotion has its role, sometimes it’s easier to build trust by letting your expertise speak for itself.
For example, you can leverage the power of your platform’s blog section by posting informative articles about Forex trading. If you look at the biggest players in the field, you’ll see that all of them have a “Forex education” section where they break down the basics. You should also post news and other topics of interest.
Avoiding self-promotion might sound counterintuitive, but in the long run, this marketing strategy will help you maintain users. Ideally, you should use a combination of both: PPC to drive traffic and high-quality content to boost loyalty.
Challenge #3: Compliance
Trading is a financial product, and the advertising of financial products is subject to some restrictions. For example, Google’s policy on financial products and services mentions that you must comply with state and local regulations for ANY country or region you target, and you’re not allowed to use ads for reading tips, signals, or affiliate sites that contain broker reviews. That can limit your freedom quite a bit, so how do you market your business whilst still remaining compliant?
Solution: Consider alternative channels
According to a 2014 study, more than a quarter of financial marketers were aware of the ad laws and limitations that applied to their field. Not only is this a bad thing because you might be breaking the law, but also because you’re limiting your options a lot, and your message doesn’t make its way to potential users.
You’ll have to do your own research before rolling out ads. Just because you’re allowed to say something in your country of origin, that doesn’t mean you can include it in an ad for another country, so, if possible, work with an agency that has experience with financial products and services. You might have to adjust your original ad strategy, but you can always find new platforms to reach new clients.