It’s no secret, web brokers that make different kinds of investments available to the general public make their profits when users trade. The more trades the better, as far as the broker is concerned. But in the world of internet investing, things aren’t as simple as this. As in the world of business, it’s easier to retain a customer than to acquire a new one. That’s the reality that has led 70 Trades to offer generous demo account services and educational resources as the cornerstone of their brokerage service. Here’s how it works.
Crawl Before You Walk
We’ve all heard the expression “You’ve got to crawl before you walk”. Nowhere is this more true than in the world of investing. It’s impossible to say how many enthusiastic beginners have lost all of their money in a few days of bad trades, driven by eagerness and greed, but buoyed by not much in the way of education and experience. In the early days, a certain kind of new investor thinks that profit-taking is easy. They think they’ve got a “good eye” for opportunities.
While this may be true, somewhat, actually making money in any investment market is harder than most new users appreciate. That’s why 70 Trades encourages their users to crawl before they walk, knowing that cultivating experience in their users this way is the best way to keep their business for many months to come.
70 Trades is so committed to this philosophy that it’s wrapped up in their name itself. It is thought that an investor does not become truly experienced until they have performed around 70 trades. Most new investors burn out before they reach that point, because of early failures and unconsidered decisions. But once an investor reaches that mark, they know something about the markets and how to behave within them. 70 Trades works to ferry their users to this level of experience, so that their long term success will be much more likely.
70 Trades accomplishes this with a demo account that lets users make all of the decisions they would about the future prices of commodities, stocks, indices, etc. The only difference is, there’s no money involved. It can be a bummer for new users to not receive returns when their demo account speculations come true, but it’s an enormous relief when a rookie mistake doesn’t have its associated cost.
70 Trades doesn’t make their users rely upon trial and error alone. This brokerage house stands alone in the way they’ve standardized their own educational resources, all of which are available to account holders. For the autodidact, there are written texts that explain everything you need to know. For others, videos explaining even the most difficult topics will make early investments much more informed at their origin. Webinars and one-on-one coaching are also standard issue for 70 Trades, and their users are all the better for it.
The education acquired through 70 Trades, even before the user makes a first real investment, is invaluable and transferable to other investment forms. The market knowledge and experience a user develops doesn’t disappear outside of 70 Trades. In fact, the user who masters 70 Trades’ take on speculative investment will find that they have much more informed decisions about all forms of investing.
In the day of robo-advising, it’s easy to think that brokers just want to keep their customer uninformed. With knowledge comes independence and opportunity. This is not a threat to 70 Trades. In fact, they work to build this up in their users. This benefits their business model as well as the long term growth of the user. If you want the same, give the service a try today.