Social Media for Forex- the 2019 Guide
Social media has shaped the forex market, making it more accessible and providing valuable updates amid often hectic trading periods. The benefits of social media for forex are tangible, but creating a strategy that leads to those benefits is still difficult for many brands without the help of a content marketing agency such as Contentworks.
This guide will highlight the value of social media and the fundamental steps you need to ace social media for forex in 2019.
Social media basics
Social media influences a significant number of people and so it’s unsurprising that is has contributed to business growth and shaped many industries including the forex market.
Indeed, there are 3.2 billion social media users worldwide. This equates to about 42% of the current global population. In addition, people spend an average of 142 minutes on social media daily.
The value of social media for forex
Social media for forex is an incredibly valuable tool. While market complexities and various rules and regulations can give social media managers a hard time, social media for FX is becoming increasingly advanced.
Besides being able to facilitate general conversations and enhance visibility, social media provides the following additional benefits that relate specifically to the forex market.
Fast communication of market trends and news
Forex markets are volatile.
In 2017, the US President addressed the involvement of the auto industry in Mexico in a tweet which read “General Motors is sending Mexican made model of Chevy Cruze to U.S. car dealers-tax free across border. Make in U.S.A. or pay big border tax!”
This tweet depreciated a currency. The Mexican peso immediately traded down 2% to a record low of 21.619 pesos and the currency dropped 3.5% against the USD during extended trading.
Social media is a powerful communication tool that can help traders share information quickly. This includes sharing news and events that can affect the market, keeping up with trends and confirming the authenticity of information with traders all over the globe.
‘Foreign Exchange and Currency Markets’ is among the largest forex industry groups on LinkedIn. The group has over 45,000 members including prime brokers, entrepreneurs, investment firms, traders, and FX commentators all sharing information and insights into the market.
Professionals in these top-tier groups strive to share quality information in order to set themselves apart as thought leaders and influencers. Investment firms want to be seen as reputable and therefore dig deep for factual correctness. Thanks to social media’s efficient sharing of this information, traders can improve the quality of their decisions by simply following the experts; people at the very top of their game.
New trader connections
Social media gives new traders a smoother entry into the market. The newbies can connect with seasoned traders and their brokers.
Social networks have humanised the industry. Forex brokerages are no longer faceless, private institutions and new traders can start interacting with their brokers from day one. Earn2Trade cofounder, David Lojko, believes in the connecting power of social media, noting that: “Social media has completely changed the way traders engage with consumers.”
The forex industry is relatively complex. Even so, there are several ways to leverage the power of social media to gain its benefits.
Here’s how you can get started on social media for forex.
#1 Set your goals
This is the first step in creating a robust social media. Your goals will determine the social media channels to use, the type of content to produce and the metrics to measure.
To set your goals you need to be able to answer the question: ‘What do we want to achieve?’
Do: Prioritise your goals in terms of the amount of value they will add to your brand.
Don’t: Proceed to the next step if you don’t have clearly defined goals.
Determine your audience
It’s important to determine your target audience because you can’t possibly cater to the needs of every social media user in the forex market sphere. Knowing your target audience will help decide on the most effective social media channels and content.
For example, people are getting into forex trading at a younger age and millennials make up 43.5% of all traders. Using this information, you can prioritise your social media channels as 88% of millennials have Facebook accounts and Instagram is the second most used platform by this generation.
Do: Find out where your audience hangs out online and create targeted campaigns across relevant channels.
Don’t: Try to target everyone. Have a clear definition of who your target audience is.
Analyse the competition
When targeting the same audience, you need to check out the competition in order to stay ahead of the game. Evaluation will allow you to see what the competition is doing well – and spot areas of weakness which you can build on. It will enable you to peek at the social channels they use, the type of content published and the amount of received engagement.
For example, a quick glance of eToro’s Facebook page shows that this leading broker provides relevant, engaging content with clear visuals to bring their messages to life. Linking to additional content is also a great way to maintain brand interest among consumers.
Do: Research the kind of conversations your competition has with their audience. This will help you to identify consumer expectations and requirements.
Don’t: Bury your head in the sand and ignore all competition. Consumers will be whipped from under your feet unless you stay on top form.
Set brand guidelines
A consistent brand voice helps to give your audience confidence and allows them to build trust. And with 87% of today’s consumers crying out for a consistent approach, it really is in your favour to set strict guidelines that shape your social activity.
Don’t chop and change between tones. This is a big no-no. Instead, know who you are, what you want to achieve and how to talk to your audience.
Having guidelines also helps with adhering to regulations. MiFID II came with heavier regulation surrounding financial promotions and marketing. For example, any promotional content has to satisfy the ‘fair, clear, and not misleading’ criteria and any risk warnings have to adhere to the stipulated layout and font size. All these requirements should be set out in your guidelines to avoid non-compliance.
Do: Set guidelines that are true to your brand and help to comply with regulations. Communicate these guidelines across the entire company making sure that all social account managers are fully clued up on the details.
Don’t: Say what you want, when you want, in any way you want. A lack of identity is a good way to get lost amid a sea of stronger competitors.
Select appropriate tools
Having the right tools will help you to collect all the data and information you need to track metrics and comply with regulation.
MiFID II stipulates the storage of all communications for increased transparency. A lot of communication occurs on social media with existing and potential customers and you need appropriate tools to help you store all the required data and improve record-keeping.
In addition, CySEC regulations concentrate on preventing fraud. In the past, fraudulent activity has been committed with stolen personal data. You need to invest in privacy protection tools that will help you to avoid fraudulent data breaches on social media.
You will also need tools that help you to track all the important metrics and data movements. The right tools will help you to optimise on the activity that helps you achieve your social media goals. Check Point software is a great example.
Do: Identify the tools that will help you to track metrics, comply with regulation and streamline processes according to your social media needs.
Don’t: Cut costs by ignoring tools that will help you comply with regulations. Non-compliance will likely result in reputational and financial losses that are way more than the cost of tools.
Plan your content
The content planning process is vital and should evolve around your target audience.
The content planning process should also factor in what type of content is successful on different platforms. As a rule, 54% of consumers expect more video content from brands. But you should also know more specific facts. For example, video content out-performs photos on Facebook by 73%. And, 82% of users watch video on Twitter with 28% of those who have watched a branded video more likely to make a purchase than a regular web browser. There are also 500 million daily active Instagram Stories users eager and waiting for content from all industries, including FX.
Do: Keep your content fresh, interesting, and lively. Tailor it to meet audience expectations across multiple channels.
Don’t: Recycle old content constantly and hope that your audience won’t notice. They will and it will cost your brand engagement.
Requirements for social media for forex
The financial industry has always been surrounded by a cloud of mistrust. The issue worsened after the 2008 financial crisis which led to increased regulations. ASIC regulation offers increased protection of trader funds and MiFID II regulates the increased transparency of fees and charges to clients.
Traders want to know that their broker is dependable when it comes to the safety of their finances and data. TIOmarkets is doing well when it comes to building trust. This broker focuses on creating value for its traders and not on the advertising itself.
Your social media activity needs to instill trust in your clients. Prioritise providing the right products and cut being too salesy.
The forex market is volatile and without the right knowledge and support, losses are highly likely. To increase your social media engagement, you must educate your audience. You need to be the go-to brand for educational information that improves trading strategies and decision-making.
One brand that rocked this aspect in the past year is Blackwell Global. The broker consistently delivers relevant educational content to its clients on social media and this has helped them to grow.
Don’t be all about promoting your products on social media. Be responsive to your clients’ educational needs and see customer loyalty grow.
Craft fresh and relevant content
On average, there are 1,500 posts in a Facebook user’s feed competing for attention daily. Your content needs to be fresh and highly relatable to cut through all the clutter. Hashtags also increase visibility and engagement on social media. Use them.
CoinMetro has been successful at creating fresh content and using hashtags. The broker consistently delivers on its ‘Tuesday’ poll with a new topic every week. This content strategy has ensured regular, new and lively content.
Find creative ways to liven up your content and keep it engaging.
Over to you
Social media for forex comes with a number of requirements. The good part is that you now know the steps required to create a robust social media strategy and presence.
By implementing the tips and takeaways outlined in this guide, you can grow your brand and enjoy the benefits of social media.
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