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gt.io
Date:
19th Jun 2020
Author:
gt.io

How IBs Attract More Business With Crypto

Introducing Brokers (IBs) are a major part of the forex market, helping brokers gain access to new clients and regions. Through marketing expertise, combined with the advantage of digital platforms that allows them to engage in the local markets, IBs can provide competitive and cost advantages to brokers.

Now, as the cryptocurrency industry, along with forex and other assets, also gains momentum, IBs have more ways to attract a new breed of traders, those who are highly interested in securing the benefits of investments in the digital asset class.
There are only a handful of asset classes that are faring well in the current economic climate, cryptocurrencies being one of them. Overall sentiment around Bitcoin, especially, continues to be on the upswing, as large stimulus measures, announced by governments around the world, will be paid through massive borrowings and printing of more fiat currencies.

Bitcoin, essentially a deflationary asset, provides a hedge against market uncertainty and hyperinflation. BTC has gained 39% since the start of 2020, outperforming every other asset class by at least 19%, as per a report by Fundstrat, a market research firm.

In this unique scenario, IBs have a lot of reasons to promote crypto-CFDs.
Analysts predict high demand (particularly among institutional investors) for coins like BTC in the post-coronavirus economy. Cryptocurrencies have the power to uniquely hedge an unprecedented environment, marked by low confidence in domestic currencies and payments systems.

Increased regulatory focus and real-world use cases for cryptocurrencies indicate an increase in maturity of the digital asset class. There were 47 million blockchain wallet users in the world at the end of March 2020, as compared to 40 million in March 2019, which means interest in virtual currencies is growing.
Investment in cryptocurrencies can act as a hedge against market downturns and economic uncertainty. Digital currencies, like Bitcoin and Ethereum, are untouched by monetary policies and stimulus packages of fiat economies. Moreover, the pandemic will continue to create sporadic volatility in the traditional asset classes. Investment in crypto can prevent erosion of savings.
CFDs are derivative instruments that can help traders leverage the price volatility of cryptocurrencies. Instead of physical ownership of assets, traders speculate on the price of a cryptocurrency at some point in the future. Moreover, CFDs allow investment in both rising and falling markets, which reduces volatility risks.
 
Introducing Brokers who offer both forex and cryptocurrency CFDs have a stronger case to attract new clients. Moreover, partnership with the right primary broker allows them key benefits such as:
Clients are much more likely to register with a broker with features such as:
  • Regulated
  • Provides the lowest spreads
  • Unmatched bonus programs
  • Multiple asset classes to trade, including forex, commodities, indices and cryptocurrency
  • Options to deposit and withdraw in fiat and cryptocurrencies
  • Superior trading platforms
  • Tier-1 liquidity
  • Expert Advisors to trade assets
All these factors contribute towards superior trading experiences, which helps with client retention and makes it more probable that they recommend the IB to others.
Promotion can be done in many ways, from advertising the broker’s banner ads on the IB’s website to email marketing campaigns or promoting special offers that the broker provides. Interacting with other traders by demonstrating solid knowledge about the cryptocurrency market is a good way to build an online reputation.

By posting blog articles, market analysis reports and trading strategies on various forums, websites and social media channels, IBs can gain referral links. Traders want to know more about the dynamics of the cryptocurrency market. Through educational webinars or online tutorials, firms can gain customers who are loyal to the instructor or expert and turn them into active traders.

Social media platforms, like Facebook, Twitter, Instagram and Snapchat, also serve as great communication channels for new clients, where IBs can address queries and promote new services. Social media is an invaluable tool for targeted advertising, where IBs can also monitor their budgets.

Reputed brokers provide many tools to facilitate marketing, such as:
  • Wide collection of banners
  • Bespoke landing pages
  • Multiple referral links
  • Content for social media and other websites
  • Bonuses and deposit offers
Interest in the digital currency market has seen a rise in 2020. There are many who are turning to cryptocurrencies for the first time. They might not be very well-versed with the market and might need support in making informed trading decisions. IBs can bridge the gap between these investors and reputed crypto-CFD brokers, helping to take this asset class to a larger audience.