If you are wondering what the currency market will look like in the years to come, answering it could be a tricky task. Especially when we are not even sure about what it is going to be like in the next several hours. However, let’s take a closer look at the recent trends and what the future holds for this highly liquid and profitable market based on the analysts’ predictions.
The growth in popularity of currency trading over the last decade
Forex trading has exploded over the last couple of years, with the pandemic year being particularly interesting. Forex has risen to the most attractive markets for investments and trading from the relatively unknown market for ordinary people.
The latest computer technologies and top-notch trading software made millions of people try their hand at currency day trading.
According to Dow Jones reports, the daily turnover on Forex reaches a tremendous five trillion US dollars. Besides its accessibility, the idea of getting rich quickly has fascinated many and will probably continue to do so.
Due to the economic crisis of 2008, people started looking for ways to make extra cash. The foreign exchange market turned out to be the perfect solution.
However, despite increasing daily trading volumes, the overall increase from 2007 to 2010 has slowed down by 20 percent, according to the Bank of International Settlement reports. It was a signal of the foreboding shadow cast over Forexin case the global economic environment doesn’t change much.
The growing number of individual traders
A slowing trend of currency trading mainly comes from the central banks and governments. On the other hand, we are witnessing a huge growth in trading account openings by individual traders. That’s why every Forex broker today strives to offer the best possible trading conditions to their clients in a fiercely competitive brokerage business.
The convenience of mobile trading
The times when Forex was accessible only to big players are far behind us. The advent of the internet in every corner of the planet has a lot to with it. Forex trading brought unimaginable opportunities to many people thanks to the bare fact they owned smartphones and a decent internet connection.
According to analysts, online trading within the next couple of years will be solely done via smartphones. Many Forex brokers already see huge growth in online trading apps usage.
The increased usage of smartphones globally allows individual traders to check economic data, price alerts, and statistics in real-time. It enables them to trade anytime, anywhere, making rsi forex trading an ideal additional source of income without interfering with their regular jobs.
Current economic conditions are significantly impacting many currencies worldwide. Besides, we cannot fail to consider the unstoppable expansion of the cryptocurrency market and its game-changing impact on the global economy.
We have seen that the most traded currencies so far were the US dollar, Japanese Yen, and Euro. For many, it’s hard to imagine what the cryptocurrency market regulations could bring in the near future. With so many various entities worldwide having dollar-backed investment, there are so many possible scenarios to look ahead.