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Want to Be a Successful IB? Here are 7 Success Tips

If you have insane trading or investment skills, and the desire to earn some extra income along the way, now is the time to become an Introducing Broker (IB). Networking on social media and other online platforms can help you attract a huge population of young traders, who are digitally savvy as well as fascinated with trading right now.

Let’s get right into some tips that can help you attract clients to your broker partner.

Tip #1: KNOW YOUR AUDIENCE

The pandemic had an interesting effect on the young, with over 51% of young investors trading more frequently since 2020. While lockdowns have led to trading peaks, regulators worldwide are sweating about the fact that these young traders lack market knowledge. In a 2020 FINRA survey, 50% of investors showed low investing knowledge but high confidence in their investing capacity. So, if you are a content creator or can provide useful trading signals and promote yourself in the right places, you can reach out to these potential clients for your broker partner.

Fun FactOk, not so fun fact. The pandemic has led to immense stress. Over 46% of Gen Zers and 41% of millennials have reported this, due to concerns over their long-term financial future (46%) and family welfare (46%). Whatever you do, don’t promote content that adds to it. Rather engage them with valuable trading and risk management tips to help their trading journey.

Tip #2: GET IT RIGHT FROM THE START

Ensure that you are eligible to become an IB, in the jurisdiction you are working in. Many regulators, like the European Securities and Markets Authority (ESMA) and Financial Sector Conduct Authority (FSCA) have specific criteria on how IBs should operate. There are laws regarding monetary rewards to incentivize new traders for signing up with a broker. 

Key TakeawayJust like you, your clients want to work with IBs and brokers they can trust. So, build your credibility with the right certifications.

Tip #3: USE FACEBOOK’S PAID ADS TO REACH YOUR TARGET AUDIENCE

If you compare it to any other social media platform, FB is still the largest, with 2.89 billion monthly active users in Q2 2021. This means plenty of opportunities to run targeted ads for your chosen audience. For example, let’s say that you regularly share technical analysis on YouTube to gain referrals. You can specifically aim at traders aged 20-40, based in a particular region, through FB ads. Just select “promote” on your FB Business Page, choose your goal, select your audience, and pick the duration and budget that fit your promotion goals.

Key Takeaway: Facebook can help you gain visibility with relevant users. Once they “like” your page through an ad, they will be able to see your content updates on their timelines regularly.

Tip #4: USE TRENDING HASHTAGS IN TWEETS

Influencers, bloggers, politicians, country leaders, and expert traders; you name it, and they are on Twitter. Look at how verified accounts of CEOs of listed companies on social media influence the markets today. For instance, Elon Musk continues to drive the markets with his opinion about almost everything under the sun.

Considering that 45% of the people use social media for news, leverage this trend to gain eyeballs for your website. Share relevant news about the markets with the appropriate hashtags to double the engagement and views. Now, this doesn’t mean you load up every tweet with hashtags. Instead, find relevant ones, and keep them to a maximum of 5.

Fun FactTwitter’s German audience base grew 30% in Q4 2020. Maybe it’s time to have a multi-lingual content strategy!

Tip #5: OPTIMIZE YOUR YOUTUBE VIDEOS FOR VOICE SEARCH 

One sure way to attract potential clients is by sharing a certain level of free, yet valuable content online. It could be anything, from trading strategies to your market outlook. For instance, you can create a 15-minute video as the week starts, giving a broad market outlook. Then, each day you might publish a chart analysis, as a video tutorial.

As people turned to videos to replace in-person events in 2020, YouTube rose in prominence, gathering 30 million subscribers. Millennials and Gen Zers love voice assistant technologies. So, start thinking about optimizing your YouTube video titles for voice search. Aim at less formal and more conversational language, with a title that includes short and simple keywords. 

Key Takeaway: Traders use YouTube voice search to find videos quickly, without the need to type in queries. With respect to search ranking, long-tail SEO keywords outrank generic search by 3% to 6%. Long-tail keywords are crucial for optimizing for voice search. They have lower competition (organic and paid) and are for more niche searches.

Tip #6: USE BANNER ADS WITH DISTINCT VISUAL ELEMENTS

Think about the modern ways websites are designed, when you choose your banner ads. Your choice of colours and visuals in the banners should fit well. Lean towards bold, and eye-catching, but not too dramatic. Images are great ways to attract people. So, if you’re selling a signal or a webinar, share the clearest picture relevant to your audience. If you’re offering automatic trading execution services through a reputed broker, maybe choose to include an image of the trading platform. To convey a message or emotion, try landscapes.

Don’t forget to add bold calls-to-action (CTAs), so viewers know what you want them to do next.

Tip #7: USE INSTAGRAM FOR SOCIAL PROOF

There’s a reason why everyone from financial influencers to brokers and expert traders are on Instagram. It’s a great platform for aspirational traders. A 2021 survey reveals that 68% of influencers choose the platform for their marketing campaigns.

So, if you have a great forex brand or are a “finfluencer” in your own right, use persuasive language to show that you represent a popular trading platform. This creates social proof, and young consumers love the concept. You can also use Instagram Stories to strategize content into categories. For instance, create a “US-China Trade War Story” with a “Swipe Up” feature to encourage people to sign-up and trade.

Fun Fact: Did you know that in a Twitter survey, 74% of respondents revealed that they support brands support social causes? Use Instagram Stories to talk about ESG initiatives of companies or launch a fundraising campaign for a specific cause. It will grab attention.

When it comes to becoming a successful IB, the key is ensuring that you cater to client needs. By being active on forums and communities, offering valuable educational content online, sharing recommendations and EAs, it is possible to increase your conversion rate.

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