subject: Competition Of Forex Trading Systems (And The Truth Behind Them) 2/2 [print this page] Competition Of Forex Trading Systems (And The Truth Behind Them) 2/2
So the question any more is not if brokers make profit from forex trading competitions or not. The correct question is as follows: What do they make their profit from and how do they turn the information piles into real money at the end of the contest?
Naturally, nothing is as simple as it seems to be for the first sight. And no one knows it better than us, who have likely tried out dozens of forex trading systems already. Anyways, that is quite obvious that after the trading rally gets over the sales representatives of the company start calling and emailing and contacting the competing traders in every single possible way. They must be doing it quickly because in case the service provided throughout the trading competition was of quality then traders may decide to switch broker and transfer their funds to the new firm that they have just had a good impression with. Most of the traders make their decisions about choosing the broker based on emotional reasoning.
The sales team probably cannot succeed with every single trader who took part in the contest of the forex trading systems and the sales cannot manage to turn every single contestor into company clients. And let's be honest here: It is a 100 percent sure that best offers will also be declined due to a great variety of reasons but brokers will naturally not accept refusal immediately. They will go after the clients and so the marketing campaign takes off with news letters, special offers, discounts, educational material and so on. They will leave need no stone unturned to pull in new clients.
Okay, so is customer acquisition the major drive for brokerage firms to hold forex trading competitions? And my answer is still NO although, this is, indeed, a great opportunity for the broker to increase the number of its clientele. Although, in this case the question arises: What else on Earth would motivate a brokerage firm to organize these competitions for forex trading systems? I will reveal the real facts now.
Brokers, competition and ranking. These are all very important factors in the success formula, although not for the clients only but they are also very important for the brokers themselves. But why would a broker care about the ranking if client acquisition is its only reason? The truth is that brokers use trade competition as a great filter for the good forex trading systems. They see every single transaction, they see every trading balance and they are aware of every trader's logic. They see and control everything throughout the entire time length of the competition.
And after the final ranking has been formed and the contest is over the brokers will start to have deep and detailed conversations with those who scored the most pips in the game. They see the trades anyways, but many times they do not understand the trading method behind so they offer jobs and money for the user of the winning strategy to have him reveal his secret. Strategies sometimes can be very easily decoded but chances are that brokers will come across with a powerful but very complicated forex trading system which the are unable to comprehend so personal talks with the user of it may seem to be a good idea. These conversations may be mutually beneficial for both parties or effort completely down the drain.
So I personally believe that recording the best yielding forex trading systems plays an equally important role for the brokers to hold these contests. From the perspective of a broker competitions are a big game room where masses of traders aim at getting in and some of them have a secret that brokers would like to use up in the future. If the broker finds a good forex trading system in the chaotic, turbulent and deranged jungle of traders then that is definitely worth the effort taken to organize the contest itself.
