What strategies can brokers use to succeed in Latin America?

Latin America has a huge potential, offering great possibilities for investment. And although there are already brokerage companies providing their services in the region, the Latino investor is starting to get to know the different products. That is to say, there is still room to grow.

From the information reported by different sites, regarding the best brokers in LATAM, we have analyzed what they do and offer, to understand the secret of their success in attracting potential customers. 

Continue reading to know more details about these strategies that brokers can use to succeed in Latin America.

Growth of trading in Latam

Latin America, as a whole, represents an attractive economy, where there are different markets to invest in. Raw materials, energy, and emerging companies (startups), among others, constitute some of its attractions.

Therefore, according to the platform INFINOX, over the past year, the total volume of online trading in the region has increased by 80%, such as the number of registered traders, even in operations with the FOREX currency market, despite the fact that some countries in the region maintain restrictions in this regard.

In particular, it is noted that cryptocurrency transactions reported a 40% growth, being the region that experienced the largest increase in the world, according to Chainalysis. And in the same vein, it was the world leader in P2P Bitcoin trading in 2020.

Therefore, it is not surprising that many brokers are turning their gaze to LATAM, where there is quite a lot of interest from local investors in different assets, especially as an alternative to protect their money from devaluations.

Strategies to Succeed in Latin America

Before going into details, it is important to clarify that each country in the region has its strengths as well as weaknesses. And that in some cases there are, as noted, restrictions for certain markets (such as the foreign exchange).

In this way, some of the strategies to be used by brokers, to be successful in Latin America, may be common to several of the countries, and others will have to be adapted, according to each case. Let’s look in more detail.

Availability for all countries

The best strategy that a broker can bet on to succeed in the Latin American market is to have a presence in all countries. Starting with the largest economies: Brazil, Mexico, Argentina, Colombia, Chile, Peru…

The more spaces a broker opens to operate, the more chances of attracting new customers, and increasing trading volume. Of course, in territories where there are restrictions, they must refrain from offering certain products or comply with current laws, so as not to suffer sanctions or suspensions.

Most attractive assets

Secondly, it is necessary to know which are the fastest growing sectors, as well as the assets with the most movement. For example, in one of the aforementioned sources it is pointed out that Venezuela is where most P2P Bitcoin trading is done, although it has a hyperinflationary economy.

But, precisely for this reason, the use of other currencies is preferred for payment. On the other hand, there are countries like Chile, where the different options for investing generate great interest, from bonds, stocks and funds to agricultural products.

Accounts, conditions and commissions

Clear rules from the very beginning, detailed information about spread conditions, opening limits, trades and withdrawals, commissions and other details: it is necessary to make everything clear to the investor.

As for the accounts, it is good to offer different options for each type of investor. It should be remembered that the conditions in LATAM are not the same as those in other territories, such as Europe or the United States.

Therefore, accounts where very high minimum balances are required or maintenance is charged if a certain limit is lowered can alienate many potential investors who have modest capital.

Platforms and languages

Undoubtedly, it is necessary to have a platform that not only offers several possibilities to operate but also must be quick to respond and friendly with the Spanish or Portuguese speakers, the most widely used languages in the region.

Training and resources

Many of the big brokers offer, in addition to their trading services, regular training programs, as well as they put different resources at the disposal of the investor and interested party.

This is a good strategy to attract the investor who is starting out, who often wants to know and not just hand over his money blindly.

Support and customer service

In the same way, it is necessary to have customer service and user support, that not only generates automatic responses but clarifies any doubts and inspire confidence in the investor. Do not forget that it is about their money, and they want above all to have security.

Updated social networks

Social networks can be the first means of rapprochement. When approaching potential investors, it is important to think about both the businesses they like and the reasons that motivate them to invest.

An investor is a person who not only wants to obtain profitability but also thinks about personal wealth, which is that of his/her family, and his/her children. Therefore, the human side should not be forgotten.

Thus, posts should be both useful and fresh, friendly even; that arouse interest and at the same time generate trust and rapprochement. Also, they need to include well-designed videos, clear graphics and some sparkling content.

There is something that has always been said about Latinos, especially those from the Caribbean area: they are warm, tend to prefer more familiar tones, are confident and have a good sense of humor.

The best broker

As mentioned, the interest in trading is growing a lot in Latin America. It is an excellent opportunity for brokers who want to offer their services to potential investors in the region.However, it is important to remember that the ideal loyalty strategy is not to offer spectacular profits and then set limitations or conditions, as this can resemble a misleading offer. And a broker cannot afford not to be trusted by its investor

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