Expos and why Forex Brokers pay for their booths
Forex trading expositions or expos for short are nothing but tradeshow fairs for the forex industry. There are quite a few expos that are held throughout the year. Some focus on the B2B side of the markets, connecting forex brokers, liquidity providers and other technology services. Then, there are B2C expos that focus on connecting forex brokers with potential traders.
In most cases, the B2C expos are often more profitable for the forex brokers. This is because, when done right, forex brokers can look at acquiring new traders within the duration of the expo.
Most of the B2C forex expos come at a high cost. However, when compared to traditional form of advertising such as email marketing, Google ads, TV commercials and so on, a forex expo is often the best and cost effective way for forex brokers looking to acquire new customers.
How are forex expos arranged?
There are a number of expo organizers that hold global forex events. Typically, the expos are spread across the globe, covering nearly all parts of the continents (and in places where trading forex is legal).
During such expos, traders or visitors are treated to a lot of information. This includes special seminars, trading analysis, strategies and so on. Some of the reputable forex coaches are also hired and sponsored by the forex brokers.
One can often find some great amount of information at these seminars and this is one of the reasons that attract visitors to the expos.
Visitors can also ask questions and spend more time with the forex coaches.
In return for this service, the expos also feature exhibition stalls set up by the forex brokers. At a fee, brokers can book a space and set up their stall to pitch their forex brokerage service to the visitors.
On the fun side of things, visitors to the stalls are treated with nice branded merchandise such as t-shirts, caps, and other memorabilia. Most of the forex expos also have networking and clubbing events later in the evening to allow for a more informal setting for potential traders and forex brokers to interact with each other.
Why do forex brokers spend so much attending expos?
By now it should be clear that attending a forex expo can create a lot of opportunities for the forex broker. This means that the forex broker can look at increasing their customer base.
Traders at such expos are often treated to custom trading conditions, one that you wouldn't find if you opened a trading account directly from the forex brokers website.
Considering that the cost per acquisition or the cost for acquiring a depositing forex trader is quite high, the forex expo can help traders to reduce the costs. Of course, you won't find all the brokers exhibiting at all the forex expos.
This can be attributed to the fact that at times, a forex broker might be interested in targeting a specific region. Budget also plays a key role in determining whether a forex broker will attend a forex expo or not.
Furthermore, it is cost effective for the forex broker to attend a forex expo that is held in their city or a nearby country rather than spending money on travel and exhibiting in a foreign and far away country.
While there are some benefits for forex brokers, the odds are however clearly inclined to the forex trader. Due to the fact that many other forex broker exhibitors are competing for the same visitors, you can expect some goodies as well as custom trading conditions.
For the most part, visitors or traders who attend a forex expo are often high net worth individuals. Therefore, do not expect to get custom trading conditions when your initial deposit amount will be just $100, or even $500.
A forex expo is a great place to connect with forex brokers. This will also increase trust between the trader and the forex broker creating a win-win situation for all. Forex brokers therefore take this opportunity to put a face to the name and represent the forex brokerage with real, human people.
Statistics show that traders who sign up with a forex broker tend to make higher deposits and are more loyal, which is one of the key things that a forex broker tends to focus on. With good marketing strategy and negotiation skills, forex brokers can often make use of the forex expos in order to build trust and relationship with potential traders while also exhibiting their reputation and business model for the visitors.