Forex trading business has gained huge popularity over the past years. Most importantly, the number of active traders in the financial industry is rising at an exponential rate. Those who are smart and have precise knowledge of the Forex market is taking advantage of these new traders. They are selling signals and making a decent profit. Selling a signal online is a very big business since you can easily create steady cash flow. The new traders don’t have any problem to pay unless you lose money at the end of the month. But there are a few things you need to consider while selling signals online. Let’s explore the details.
There are two basic types of traders in the Forex market. The aggressive traders use the scalping method and the conservative traders rely on position trading strategy. If you intend to sell signal, you must consider this fact.
Let’s say, you are signals based on the higher time frame. So, it’s very obvious the scalpers will not pay for your offered service. You must create the signals based on short, medium and long term trading strategy. By doing so you can expand your target audience and increase more sales.
Proven track record
Before you start selling signals online, you must have the ability to make a consistent profit as a currency trader. Unless you have a proven track record in the trading industry, you should never start selling signals. The investors are very smart and they will assess your portfolio before taking your service. Some of the traders often ignore the portfolio section in a very tricky way but such an approach always creates suspicion. And those who are trying to make a living out of trading will never trust your service. So, focus on the development of your portfolio before you start selling signals.
The risk to reward ratio
Thousands of traders are selling signals online but a handful of them, have regular clients. The only reason for which developing a signal service is hard, it requires pin perfect market analysis. Your signals must have a 1:3+ risk to reward ratio or else your clients can’t recover the loss. Just think about your trading system.
Do you feel comfortable to trade the market with a negative or 1:1 risk to reward ratio? The obvious answer is NO. Though the number of losing trades might increases to a certain extent, still using the high-risk reward ratio helps you to secure profit at the end of the month. Stop thinking about a certain trade and consider on monthly return.
Social media exposure
Never underestimate the power of social media in today’s world. Many small business owners have made millions of bucks just by targeting the right audience on the social media platform. Though it’s super important to have your website, you can’t deny the fact, millions of clients are waiting for your service on the social media platform.
Make sure you have a solid social media marketing plan so that you can penetrate your target audience. Unless you can reach a decent number of interested clients, setting up your online signal service company will be a hard task. If necessary higher professionals and go for a monthly promotional campaign.
Engagement and activity
The successful signal service companies are trying to engage with their potential clients via regular updates on their websites, social media platform, and other relevant online mediums. Let’s say, you have secured 400 pips from the last 3 trades. Let the potential clients know about your success so that they feel more confident about your offered service. You need to add relevant and fresh content to your websites and other online profile to gain trust. Slowly it will help you to create a brand identity in the trading industry. Getting engagement at the initial stage will be a challenging task but you should never lose hope. You need to stay active in the online industry before people start trusting your company or service.
Many retail traders start trading with very small capital. Let’s say, a new trader has opened a trading account with $1000. So, if you sell signal for $100 per month, your service is not a perfect fit for the small investors. You need to offer the service in a variable price range so that small to big investors can afford your service. But make sure you demonstrate basic packages with lower price tags have no quality issue. Write the details of your offered service for each package so that the potential clients can understand the reason behind the different price tags.
Selling Forex signals online is a very profitable business but the things are pretty hard at the initial stage. However, if you can follow the tips mentioned in this article, you can easily expand your business in a short period. But always remember, you have to be a successful trader to make this business profitable.