When you are starting at a new forex brokerage firm, one of the first things to think about for MARCOM is "who are we going to target", "how to choose a target market for a currency trading company?". The question of the target market in itself will define the whole roadmap for your business operations. In this post we highlight three target market opportunities for Forex investment firm startups to build brand awareness, drive demand and generate quality leads.
1. HIGH NET WORTH MARKETS
You are most probably thinking of this niche right now. This is indeed the most common choice among the newly established forex brokerage firms - target traders and investors who already invest good amount in online currency exchange market. However, you must not forget that these high net worth investors tend to be also brand loyal and stick with their existing trading platform providers, who are not easy to attract to some new market players. You must establish a good curiosity about your brand/product proposition to grab their attention.
Pro's: proven good return on investment
Con's: challenge to make them switch from competition
Examples: United Kingdom, Australia, China
2. EMERGING MARKETS
Emerging markets such as Mexico and Kazakhstan are new to the Forex industry and may not be aware of all ins and outs. These are mostly novice traders and investors where you might be the only one or one of the very few competing for the customers. Emerging markets tend to be much cheaper than when attracting the high net worth investors, but at the same time, can take much longer to actually get clients to intermediate and advanced level of trading.
Pro's: low acquisition cost
Con's: mostly beginner traders and investors
Examples: Mexico, Kazakhstan, Canada
3. RISK TAKERS
Another interesting market potential are high risk takers. These are especially the countries of Nigeria, Indonesia and Malaysia. These customers are easy to attract with promotions, bonuses and demo competitions, they are willing to switch to another forex broker if they see attractive proposition, but at the same time, those traders also do not tend to deposit much more than the average of $1000.
Pro's: easy to attract with marketing programs
Con's: low net deposit level
Examples: Nigeria, Indonesia, Malaysia
WHAT IS THE RIGHT TARGET MARKET FOR OUR FOREX BROKER?
You cannot know a right or wrong in this situation. The best way is to TEST! Run a pilot for each of the groups to define the best strategy for your company. Here is a list of things to consider before planning a pilot test:
- What is your marketing budget? How much can you spend per funded account, per lead, per click, per 1000 impressions? This is an important metric as if your budget is too low, your choice might be just limited to promoting for the emerging markets.
- Where is your network? Having a strong network in one part of the world can significantly impact your prospects reach. For example, if you have strong tights in China (where knowing people is of high importance), you muight be able to establish some good presence with the locals who are well connected to your existing contacts.
- What are your short-term goals and objectives? Do you need to generate a certain number of leads in a specific period of time? Or do you want to first establish a strong brand presence? This is important determinator for setting up the right pilot, as you might be running more of "unique selling point" driven display campaign on selected forex media buying sites for building brand awareness. While on the other hand, you might decide to start a forex educational program to generate leads.
Here are some good forex marketing campaigns you can consider for your pilot.
What has worked best for you? Share your insights with us in the comments section below, or if you are still struggling on the choice, schedule a free consultation with one of our associates!