5 ways to increase user retention on trading platforms

5 ways to increase user retention on trading platforms

In recent years, many people have shown an interest in investing in equity markets, seeking higher returns due to low-interest rates on savings accounts.

The Coronavirus outburst in early 2020, which led to stay-at-home orders and an increase in market volatility, together with the Robinhood and Reddit revolutions the following year, were game-changing factors in retail trading as they accelerated the growth of new traders.

Trading platforms have benefited from this massive growth, enabling clients to invest directly in the stock market rather than through a financial advisor. According to research firm Platforum, assets held by ‘direct-to-consumer’ trading platforms jumped by 30% to £320 billion between 2020 and 2021.

With increased competition, trading platforms are on a mission to maintain a high level of user engagement and retention. Here are 5 methods to strive towards those goals: 

Weekly newsletter with top-performing stocks

A strategy that might help reduce the churn rate is to offer a weekly newsletter with top-performing stocks. Similarly to newsletters in other industries like travel or health, a trading newsletter is a regular email that is sent to a user’s inbox. For trading platforms, the goal is to help target the right stocks for their clients. 

They can also add valuable insights for traders and links to relevant articles. Traders can select the stocks they want to track, with the platform tracking their performance and other metrics every day.

Users can set up a watchlist by choosing the stocks they want to track. Each week, the trading platform will send users their watchlist with the latest performance and stats. This way, clients can stay on top of their investments and analyze how their choices are doing.

Push notifications with a CTA recommendation

Another way to engage users is through push notifications. These are messages that are sent directly to a user’s device as soon as an event occurs. For example, a trading platform may send users a notification when a stock on their watchlist hits a certain price. Users can receive various push notifications, including when a stock they are following gets a new buy or sell recommendation or when a profit has been reached. Users can also choose the type of alerts they want (sound, vibration, or both).

Explainer webinars on how to use the platform

If a trading platform has particularly complex features and tools, it can start offering website-based webinars. This can be an excellent way to engage with traders and help them learn how to use the platform. Webinars can also be a great opportunity to ask users about their experience, collecting feedback on what can be improved. With live-streaming services, platforms can host webinars for all users at the same time. There are plenty of free or low-cost tools for hosting webinars, including Zoom, GoToWebinar, and Google Hangouts.

UX/UI design 

Another way to keep users engaged is to create a sleek and aesthetically pleasing platform. The company that owns and operates the trading platform has to look trustworthy, secure, and appealing. UX and UI designers can help create a beautiful and easy-to-use trading platform that traders love. It can also help with improving user retention by making the trading process easier and more intuitive. 

AI based research tools

Finally, trading platforms can utilize artificial intelligence that saves hours of analysts’ work (and sometimes weeks!). AI-generated engines can cover global stocks within seconds, provide unbiased fundamental analysis, and the engine that we developed - can also translate those reports into any language.

These tools eventually lead to increased confidence in trading, as users get access to immediate up-to-date analysis in their native language, alongside recommendations that drive actions. Furthermore, studies have shown that users tend to trust AI technology more than humans when it comes to making informed decisions.

With a strategy that incorporates all those factors, trading platforms will be able to provide the best trading experience for their clients, attract more "word-of-mouth" customers, and build long-term relationships.

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