Forex trading has picked up pace in the last few years. The market had reported a daily turnover of $6.6 trillion in 2019 and 2020 should prove even bigger. Reports suggest that customers can make anywhere between 12% to 48% target returns per year, depending on their risk appetite and trading activities.
Despite the promising returns, the challenge for forex trading houses is that most leads are reluctant to become active traders.
There could be many reasons for it.
To begin with, prospective customers, i.e. the leads, lack enough knowledge about how Forex trading works. They may have read books and blogs on the subject but may lack the practical experience required for trading. Secondly, these people may be risk-averse. They find forex trading risky and are unwilling to experiment with it. And perhaps most importantly, they may find that the learning curve is steep, and forex investment requires them to be disciplined. So, even after showing some initial interest, they are not very active on the platform.
All these factors act as a barrier for forex traders to acquire new customers. Although most forex trading houses offer a free trial, and many people do drop by to sign up for the trial (or demo), the lack of intuitive interface, knowledge, and experience makes it difficult for leads to convert into real customers who have an interest in trading actively.
To encourage leads to trade, trading houses need to demystify forex trading and make the interface so engaging that they can try it fearlessly and eventually convert into customers.
The best way to do it is through gamification.
Gamification is a technique in which the trading houses can create a simulated environment that is similar to the real-time market conditions. Gamification uses gaming elements to make this simulated environment intuitive and engaging. It is available in various formats - quizzes, competitions, and, the most impactful, trading contests.
Now let’s look at how it can benefit leads.
Most customers are wary of investing real money in the beginning. The best part about gamification is that leads do not need real money to participate in the games. They can use virtual funds to play. This will lower the risks, and leads can practice as much as they want without the fear of losing money. In fact, the leads can get incentives if they participate actively. For example, those who rank high in the leader board can be given trading credits, cash rewards, etc. This will encourage the leads to be more proactive on the platform.
Though there are plenty of blogs, ebooks, and videos available on investing, topics like forex trading require continuous learning and practice. In fact, research shows that up to 80% of all learning takes place when knowledge is applied in context. Gamification has proved to make learning easier for leads by enabling that. Traders can build micro-lessons that are in the form of flashcards to help the leads retain knowledge better. They can devise ways for traders to test their knowledge. Quizzes, for instance, enable the leads to revise whatever they learned about the subject. Then, simulated real-world situations will allow the customers to test their trading skills and make informed trading decisions. The continuous practice will help the lead test whatever they have learned and boost their confidence to trade in a real environment. Eventually, they will be able to devise their own strategies for investing.
Everyone likes to seek social validation. Several trading platforms have seamlessly integrated social media networks with their gaming platforms. So, the leads can share their achievements such as their successful trades, learning progress, etc., on their social media platforms. This can be a win-win situation for both the leads as well as the trading house. The leads can share their achievements with their friends and family members and also indirectly create brand awareness for the trading house. Apart from that, the leads can follow the accounts of other investors and trading experts to gain the latest insights on forex trading. They can also learn the tricks and best practices on these platforms. This will help them to prepare for real-world trading.
Word of caution: As witnessed with the GameStop stocks, all social media recommendations might not be in the customer's best interest. Trading houses must ensure that leads are aware of this to avoid making any errors in investment.
Gamification has truly transformed trading into an entertaining activity. The leads no longer consider it a drab activity. The rewards, badges, social recognition are few factors that motivate the leads to play and engage more with the platform. Also, considering that the interface is simple to use and there’s no financial risk involved, the leads will gain the confidence to trade in a real-world situation. Trading houses will be able to leverage this opportunity to convert them into paid customers.
Leading brokerage companies are already adding new customers to their forex trading platform. Gamification is being cited as one of the main reasons for their success. If appropriately implemented, gamification can enable forex trading houses to engage leads, convert them into paying customers, and grow volume. It can boost conversions to up to 7x. Hence, it’s time that trading houses consider it as a key strategy for converting customers. If you also believe that it’s time for the fun and games to begin then check out https://www.toptraders.io/