Forex Social Trading Helps Asian Brokers
In today’s technology-driven world, a growing number of Forex traders are using the power of social networks to make more shrewd trading decisions. Through social trading, traders can follow the trading behavior of seasoned, successful traders and copy their actions. This empowers individuals with little or no trading expertise to navigate the often tricky waters of the Forex market and make a profit. As brokers look for clever ways to recruit or retain clients, social trading gives them another way to boost trading volumes and brand loyalty. Nowhere is this more suitable than in Asia.
Why Asia Could Be the Next Global Social Trading Hub
It’s no secret that Asian economies weathered the global financial crisis better than most, and analysts predict that 2013 growth in Asian markets to be better than expected. Still, some Asian Forex industry gurus fear that the continent as a whole could soon be reaching market saturation, which is why creating new ways for brokerages to overcome this hurdle is of utmost importance. This starts with offering social trading options to new and existing traders.
The sheer size and scope of social networking and its influence in Asia speaks volumes. For example, as of May 2012, the number of social network users in Asia exceeded 750 million, and that number is only likely to increase in the coming years. Whether it’s the 531 million Qzone users in China, the 46 million Facebook users in India or the 25 million Cyworld users in South Korea, Asians from all corners of the region find significant value in the modern day phenomenon known as social networking.
The reciprocity these and other social platforms create gives those of us in the Forex business strong reason for comfort, as we can use this aspect of social networking, apply it to Forex trading and engage even more traders across Asia.
Opportunities for Social Trading in Asia
Japan is a great example of the possibilities social trading in Asian markets provides. In fact, both Forex trading and social network usage are widespread in Japan. Recent data shows that the number of people in Japan with Twitter accounts has reached 30 million, and while traditional online trading has nearly reached its saturation point in this tech-savvy island nation, social trading can offer new ways for brokers to expand their client rosters. This is especially true in the wake of 2012, a tough year for Japanese Forex gurus resulting largely from new leverage restrictions imposed by regulators took a heavy toll on trading volume. Japan makes up nearly 18 percent of the global Forex market, and many brokers saw their businesses affected by the steep decline in Japanese Forex trading volume.
Online Forex social trading has the potential to turn this bad fortune around. Taking advantage of the prevalence of social networking in places like Japan, brokers can create new vehicles to spurt trading volume. All it really takes is smart marketing campaigns to spread the word of social trading potential and the development of user-friendly Forex social trading platforms that accommodate traders from all experience levels and language backgrounds.
Benefits of Social Forex Trading
We know that social trading offers traders low barriers of entry. People don’t have to spend a great deal of time or brainpower becoming Forex experts. And once they copy other traders’ behavior and see their trading decisions pay off, they feel part of a larger community. This increases the likelihood that they’ll stay with a broker for a longer period of time or spread the word that your brokerage is a good place to start trading Forex with others. Since the Asian market tends to adopt technology at a very early stage, we believe that brokers must embrace social trading solutions now in order to take advantage of the enormous growth opportunities this popular tool creates.