With a daily turnover of more than 5 trillion US dollars, the forex market is by far the largest and most liquid market in the world. Although calculating the exact number of forex traders is almost impossible, one estimate says that 9.5 million people around the world are online traders – that’s 1 in every 781 people, or 1 in 396 if you rule out the people who don’t have access to the Internet.
According to an AITE Group study, the US remains the leading market for forex trading, followed by the UK, but countries in Asia are quickly catching up and becoming major financial centres. Ever since the 1970s, forex trading has been one of the most popular forms of investment using top forex brokers uk, and the widespread availability of high-speed Internet has made it even more so. But is forex still a profitable investment idea in 2019, when bitcoin and other disruptive innovations are gaining traction?
Taking into account the latest figures from UK regulative bodies, the popularity of this type of trading is certainly not dimming and, when it’s backed up by a well-calculated strategy, this activity can indeed lead to a massive boost in earnings. Here’s why:
The UK is one of the most dynamic forex markets in the world
According to the Office of National Statistics 2017, there are more than 46 million Internet users in the UK, and 280,000 of them are online traders, the highest number out of all European countries (the UK is followed by Germany, with 150,000 online traders). By the latest estimates, 1 in 100 Brits have traded online at least once and millennials account for nearly 60% of them. In fact, currency trading may be one of the fastest growing trends for the new generation.
If in the US the average trader is male, in his 40s, drives a full-size Sedan and is mainly interested in news, politics, and economics, the UK image is almost the complete opposite: the average British trader is male, in his late 20s, drives a low-end car, but is interested in digital currencies and disruptive technologies. Moreover, British women seem to be gaining an interest in forex trading as well. On a national scale, 12.5% of traders are female, but in Herefordshire, for instance, 22% of traders are female.
Why consider forex?
Based on this data alone, forex is undoubtedly a popular option and the simple fact that the UK has a young, dynamic community of online traders can be a good reason to start doing it. However, it’s not the only one. Here are other good reasons why you should consider starting trading forex in 2019:
Low barriers to entry
The investment world, in general, is not easy to understand and even with a degree in finance and economics, you can still fail. Like any investment strategy, forex trading does have its risks, but the barriers of entry are lower than any other option. You don’t need to be a top-level executive to do it, nor have a specialised degree. Anyone can be a forex trader, no matter their level of education and business experience and you don’t even need a mentor because there are many sources of information out there. From well-structured online guides to e-books and podcasts, you can always find an online source that breaks down basic or advanced forex notions. This way, you don’t have to be worried that you’re entering a complicated market feeling completely lost and confused. Forex has low barriers to entry and the abundance of online guides can help you make informed decisions. Besides, most professional forex trading platforms have free demo accounts, so you can practice in advance.
To become a forex trader, you need nothing more than an Internet connection and a smart device. Whether you want to trade from your office or from a café while on vacation, you can do it. To add to that, Forex has low trading capital requirements compared to other financial markets and signing up for a trading platform doesn’t take a long time. And, because no one wants to risk their entire savings right away, minimum deposits are generally very low and you can start investing more as you gain experience and confidence.
Accessibility and low barriers to entry are two great benefits, but, in the end, every trader wants a guarantee that their funds aren’t at risk and that they’re not placing their money in the wrong hands. Here, the UK forex market definitely doesn’t disappoint, because it’s one of the heaviest regulated in the world. UK (FCA regulated) forex brokers operate based on strict rules and regulations that have the consumer’s safety in mind. Once you create an account on platform approved by the Financial Conduct Authority (FCA), you know for sure that it has a healthy trading environment, that it acts in the traders’ best interest and that you won’t be exposed to financial malpractice.
Bonuses and promotions
Last, but not least, forex trading opens many doors in terms of bonus and promotions. Although you will not be able to gain massive earnings from these alone, they are a nice plus that can motivate you. There are many regulated forex trading platforms out there, competition is fierce, so, to attract new users, they come up with various tempting offers that work to your benefit, such as: deposit bonuses, welcome bonuses, VIP bonuses for loyal clients, or forex reload bonuses.
If you are passionate about financial markets and new technologies, forex is still a viable investment option in 2019, especially for the millennial generation. As long as you trade consciously, stay disciplined, invest in self-education and rely only on trusted platforms, forex can turn into a long-term strategy that can help you build a secure financial future.