Singapore’s Digital Start-Up Giants - TradeHero
What makes TradeHero the #1 Finance app in 91 countries? We find out.
Asian Insights Office, DBS Group Research
TradeHero is a mobile app through which users can learn financial trading through a gamification process. Users can follow top traders or “heroes” and monitor their stock trades through push notifications. All stock trades are simulated but follow real time stock data. Bite-size videos and content provided by its partners provide financial education to users.
Monetisation Model: Freemium
Joining is free but users can pay US$1.99 to follow a “hero” on the leader board. From the US$1.99 fee, 30% goes to the app store, 35% to the company, and the remaining 35% to the trade “hero” himself.
Banks and brokerages have shown keen interest in collaborating with TradeHero to tap its pool of earnest would-be investors. Hence TradeHero charges financial institutions (FIs) a fee for access to its user base.
TradeHero has a user base of more than 2 million, with plans for 5 million users by the end of 2015 and 30 million by 2017.
How is Tradehero Different from its Competitors?
TradeHero’s rival E-Toro is the world’s leading social investment network. It enables traders and investors to connect with each other to make smarter investment decisions. The key difference is that E-Toro does real live trading whereas TradeHero does not. This makes TradeHero stand out as a partner, rather than a competitor to the FIs. Also, TradeHero’s gamification features are not present on E-Toro’s platform.
TradeHero is focusing on increasing its user base in China and the US. It also plans to leverage on FIs and tap on their networks.
a. Category leader: Yes, in the gamified learning trading space
b. Virality coefficient: Likely to be above 1. TradeHero focuses a great deal on creating viral campaigns. An example is a campaign that was conducted for business students from China’s top 50 universities. Students were incentivised to become a trade “hero”. This was propagated via WeChat, the most prolific social networking platform in China.
c. User engagement (DAU/MAU): Approximately 15%
d. Conversion rate: Between 2% and 3%
e. Costs of acquisition: Estimated to be US$3 per customer
Key challenge: Need to be careful of “copycat” apps from China, where it has a large user base.
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