Despite the current increasing development of social trading solutions by retail FX brokers which have become somewhat dependent on providing an interactive method of engaging clients, success cannot be guaranteed.
Many firms have recently integrated social trading platforms into their actual trading environment, resulting in greatly increased volumes, and longer lifetime value for clients – an important facet at a time of extremely high client acquisition costs and low volumes.
For one particular social trading network, however, this has not been the case. LigaForex was launched in September last year at the CIOT Expo in Shenzhen, China, specifically aiming its services at the Asia Pacific region, an area which has brought a substantial volume of business to many firms, and is home to a great number of retail traders who have embraced social trading and copy trading methodology.
Liga Forex has today announced its demise, after just 10 months in existence, by sending a letter to its clients, as follows:
LigaForex is closing
Dear clients,
We regret to inform you that due to internal policies of the company, it has been decided to shut Liga Forex down.
You have time till 31st July 2014 23:59 GMT to close any open orders that you may have. If you don’t, we will manually close your orders at the last market price.
Moreover, after 31st July all client funds will be transferred back to the e-wallets that had been used for top up. We highly recommend you to place a withdrawal request as soon as possible, to avoid delays.
Thank you for joining us on this exciting journey!
At the time of launch, LigaForex saw great opportunity in approaching a Chinese audience, and had positioned itself in that direction with language support in Chinese, Malay, Indonesian and Mandarin.
Could it be that established competition was too much for LigaForex, and that within the last few months, industry leaders such as Tradency and Leverate have refined their fully integrated social trading platforms in such a way that a worldwide audience can be garnered only by those with proven business?
Furthermore, the interaction between retail traders and those providing their trades to be emulated is of such importance nowadays that innovative new means of maintaining contact are coming about, with one particular example being Dukascopy Connect, a secure instant messaging service which crosses the boundaries of FX and heads toward the mainstream, with Whatsapp in its sights.
Innovation is most certainly crucial for the survival and development of such networks. Join LeapRate on September 15 at the Forex Innovators conference, in order to gain an important insight into the essential steps which companies can take in order to enhance their business and keep ahead of the competition.