How do financial trading promote different account types to entice new customers

The marketing of different account types by financial trading platforms is a popular way to attract new traders. Financial trading requires various trading strategies and approaches. There is also a religious factor depending on the region. Scalping strategies require low spreads, Islamic traders prefer accounts without interest payments. Brokers typically offer different account types according to these requirements by traders. Let’s discover the peculiarities of different account types offered by financial trading platforms.

Understanding Financial Trading Platforms

Financial trading platforms are software that allows traders to speculate on a wide range of assets. Financial brokers offer these platforms, sometimes referred to as financial trading platforms. In this text, we will refer to brokers whenever we mention financial trading platforms. Financial brokers are intermediaries between financial exchanges, who themselves are provided with price feed by liquidity providers or big market makers in the industry. Financial brokers play a crucial role in allowing retail financial traders to access markets with considerably low capital and provide trading platforms with advanced functionality. Without financial trading platforms, a.k.a. brokers, it would be difficult to access financial exchanges and without trading platform software, it would be impossible to trade on financial markets. There are multiple popular and reliable financial trading platforms or brokers that offer traders a unique opportunity to speculate on various markets with low fees and low initial capital requirements. One of the brokers is the XM Forex and CFDs broker, which is very well-regulated and has a track record of allowing traders to withdraw profits without interruptions. The broker provides access to MetaTrader 4 (MT4) and MetaTrader 5 (MT5) advanced trading platform software on both desktop and mobile devices. It also offers various promotions to attract new clients and encourage existing ones. XM bonus is the fastest way to turbocharge FX and a multitude of other asset trading. There are two types of promotions, no deposit bonuses and deposit bonuses. The first is for transitioning from demo to olive without investing your capital, and the second one adds a certain percentage to invested capital.

Different Account Types Offered by Trading Platforms

Forex brokers love to offer diverse trading account types appealing to a wide range of traders' audiences. The primary reason for offering several account types is not only marketing and showing product diversity, but also offering different traders different accounts based on their capital, trading style, and even religious beliefs.

Popular account types explained

As we have mentioned, trading account types come in different forms to appeal to a wide audience of traders. There are beginners, professionals, and traders who want to follow their religious beliefs while trading markets. Popular account types include standard, micro, zero (ECN), and Islamic account types. Each of these accounts has distinct characteristics and benefits depending on the trader’s style and beliefs.

Standard and Micro accounts explored

Standard accounts are typically offered to a general audience of Forex traders that have 0 commissions on Forex pairs and average spreads. The industry average spread for the EUR/USD major pair on standard accounts is around 1 pip. Lower than this is considered cheap, while higher than 1 pip is considered expensive. However, if the spread is fixed, meaning it doesn't change depending on the market volatility, even 1.5 pips are considered good. If you see a variable or floating spread from more than 1 pip, then it is expensive.

Micro accounts are specifically designed for beginner traders who are transitioning from demo trading to live trading and want to risk very small amounts of money to hone practical trading skills. Micro accounts typically have spreads of 1.2 pips on major pairs but require minimum deposits from 0 USD. The micro lot is also different from the standard lot. 1 micro lot equals to 1,000 currency units, while 1 standard lot is 100,000 units. Micro lots allow micro account traders to trade with substantially lower position sizes than standard accounts. This is good for investing tiny capital and testing the waters of live trading. The popular broker provides both micro or cent accounts and standard accounts. The broker also has different types of standard accounts. We won’t focus on XM ultra low vs. standard in this article, as we are going to generally overview the main types of accounts and their appeal to new customers.

ECN, zero spread accounts

ECN or an electronic communication network is a technology that automatically fits buy and sell rates, enabling brokers to offer lower spreads as a result of increased market-making efficiency. ECN accounts or zero accounts are trading accounts that provide traders with near 0 pip spreads, best suited for scalpers. Scalpers rely on a multitude of tiny profits throughout the trading day, and they are super sensitive toward spreads. Forex account types with 0 spreads have trading commissions charged per standard lot traded per side. This commission should not be higher than 7 USD round turn (3.5 USD per side per lot) to ensure low spreads are worth for the scalper.

Islamic accounts

Islamic or swap-free accounts are the perfect way for Muslim traders to follow Sharia laws without breaking them during financial trading. These accounts do not pay the interest as per Sharia laws and beliefs, providing a higher value for financial traders from Islamic countries.

VIP or Premium Accounts

VIP and premium accounts are dedicated account types for seasoned and professional traders. These accounts typically require a much higher initial investment of 20,000 USD and higher and offer super low spreads for super low commissions. Experienced traders who want to invest a considerable amount of money search for the best conditions, and brokers are meeting these requirements with their VIP or Premium offerings. VIP accounts have access to advanced trading tools, and many brokers even assign personal account managers for pro traders.

Marketing Strategies for Promoting Account Types

The brokerage sector is a place of fierce competition, where only the strongest and best survive in the long term. Effective marketing strategies are critical for these firms to maintain existing clientele and attract new ones. Various account types allow brokers to attract traders from different backgrounds and ensure the whole market is covered. Platforms leverage segmentation and targeting to identify specific demographics, tailoring their account offerings to meet specific needs, from novice traders opting for demo, micro, and cent accounts to seasoned professionals seeking advantages of VIP or premium accounts. 

The value proposition of each account type is carefully crafted, promoting features like competitive spreads, low minimum deposits, or exclusive access to advanced trading tools and services.

Digital market tactics play a pivotal role in promoting these account types. Financial trading platforms utilize a mix of social media marketing, targeted email campaigns, SEO-optimized content marketing, and collaborations with influencers to reach potential traders. Incentives and promotions are another cornerstone of these marketing strategies, where brokers offer various bonuses and events to attract and maintain clients. Offers such as sign-up bonuses, referral incentives, reduced commission rates, or zero deposit and withdrawal fees are common tactics used to encourage new account registrations.