New to the FX market? Don’t fight with sharks! Check the concept of the long tail!

This article is written by Sylwester Jezierski, Marketing Manager at X OPEN HUB. You can find more tips about starting a new brokerage house at

Long tail vs Pareto

Sylwester Jezierski, X Open Hub

The concept of the long tail is a denial theory of an Italian scientist, Vilfredo Pareto.

Pareto proportions had been observed in the distribution of wealth in nineteenth century England. According to the economist, 20% of the effort is responsible for 80% of the results. The theory has been repeatedly used to describe the accuracy of different phenomena, not only in the field of economics. According to this rule, sellers should only choose to offer the 20% of products that enable the company to get 80% of its revenue.

Thanks to the Internet and new technologies (drop shipping, electronic products) delivering less popular products and services to a narrow group of consumers has become economically efficient. Digital economy, in contrast to the traditional one, is not limited in terms of distribution channels. Due to these features, there is no reason for online sellers to give up the remaining 80% of their products.

When it comes to the financial industry you don’t have this limitation either. By presenting your client with a more personalized and sophisticated offer, you can easily stand out among the competitors and even win with the big sharks.

Classic Marketing

Remember, for a small FX brokerage house, the most crucial assets of your business are your employees and their time they can spend with your clients. Your organization is more agile and more adaptive to the changing environment. Try to make the most out of this advantage.

In a big organization on the other hand, the offer can be tailored only to some extent. It is much harder to offer excellent customer service to clients in a large company – where the employees have less knowledge about their clients’ business. This can lead to clients feeling unappreciated as in this scenario, companies often aren’t able to spend the quality time required to service their clients properly.

Long tail in online marketing


The finance industry has one of the highest rates when it comes to CPC or CPM bids. Extreme competition doesn’t allow brokers with small budgets to stand side by side with the big sharks. The best strategy is to find the most suitable niche. In the case of PPC biding, don’t focus on short and common terms like forex, trading platform or brokerage house. Be more specific. Try to bid for longer terms such as “the best brokerage for small business”. This way, you give yourself a better shot of ending up in the first place. This bids on these phrases are also less competitive and cheaper.

Keep in mind that landing pages with the offer also have to be optimized. Don’t forget to put keywords in your landing page texts. Be specific. Promote transparency and trustworthiness on your site. The higher the Landing Page Quality Score the better your results will be.


On the other hand, we have organic traffic. In this case the most trustworthy and cited website gets the highest positions as well as the highest amount of traffic.

The ability of using search engines increases. Users, in order to obtain more accurate results, use more complex queries. Each year, the use of one word queries with a broad meaning has seen a significant decrease.

Before choosing your best link-building strategy, you need to estimate the keywords on which you plan to focus on. Once again, remember that your competition works hard and spends large amounts of money on the most common phrases. In this case, you also need to reorganize your strategy. Try to choose more descriptive phrases. Your chances will increase when you choose more complex phrases that are connected with the localization of your business. You can also spend some time on content marketing. A good solution is to prepare professionally written articles with a focus on properly selected keywords.

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