It goes without saying that the foreign exchange market is a dynamic one all around the globe. This being the case, forex traders ought to always be on the lookout for all the changes, occurrences, and transformations that might affect their earnings. Politics, finance, and business are just some of the factors that impact the Forex markets. Being a highly dynamic market, any Forex trader would want to stay up-to-date with the latest news, developments and trends in this line of business. This is always an important part of the market analysis, which is by far one of the most important tools of trade in Forex. Keeping up with the trends in the foreign exchange market can be helpful when it comes to making investment decisions that matter. This having been said, here are 5 trends that are popular on the Forex market in 2018.
1. Automation is on the rise
Most, if not all, Forex platforms have adopted algorithmic trading systems. Thanks to today’s technology advancements, there are many computer programs and smart device apps that are designed to enhance the way we trade. Most of them seek to automate the process, increase speed, enhance precision, and eliminate human error to boost success in Forex trading. These computer programs also conduct market analysis for the trader, providing them with the information they can use to maximize their profits. With this kind of automation, Forex traders—especially beginners—can also minimize their risks.
2. The crypto boom is real
You’ve obviously heard of Bitcoin and other virtual currencies and you’re yet to use them. These currencies are increasingly gaining acceptance all around the globe as a mode of payment. As a matter of fact, they might as well start co-existing with the traditional currencies in the Forex market really soon.
3. Tighter regulation and control
The first 3 quarters of 2018 have also seen the major regulators in the foreign exchange world tighten their grips. For instance, Forex trading venues are nowadays regulated, meaning that they should adhere to and comply with a certain set of requirements for them to be allowed to provide FX trade services. Price transparency is one of the most regulated aspects that FX trading companies or venues should comply with.
4. FX trade companies changing jurisdictions
Referring to the previous point, FX market regulations may vary from one jurisdiction to the other. For instance, regulations for FX services within the US may be a bit different from those in China, EU, and the rest of the world. The last few months of 2018 is highly likely to see many companies shifting operations to jurisdictions with less tough regulations.
5. FX traders are choosier
Foreign exchange has been with us for many years now. And with today’s mega advancements in technology, most people want to trade right from the comfort of their homes using online FX platforms. But then again, today’s traders are wiser and choosier when it comes picking an FX broker. Most traders are relying on reputable review sites such as www.connectfx.org for information about the best FX brokers.
With the above few pointers at your fingertips, you just became a better FX trader than you were before.
