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The State Of UK-Forex Trading Market In 2019

In markets called foreign exchange markets, currencies are bought and sold just like any other commodity. Forex trading seems to be a growing popular strategy for building wealth and have a lavish lifestyle and a high degree of financial independence.

Forex Trading

Considering the worldwide foreign exchanges, the three most common transactions are exchanges between the dollar and the euro, the dollar and the yen, and the dollar and the Pound Sterling. The power of the dollar currency has made the US be the leading market for Forex trading. Yet, since the Pound Sterling is the third most-traded currency in the foreign exchange market, the UK is right behind the US.

In the two years since it has voted to leave the European Union, the United Kingdom has significantly extended its lead in the global currency trading business. Statistics show that the UK has almost twice as many online traders as any other European country. Approximately more than 730.000 online traders have helped the Forex trading market in the UK to become the largest in trading volume.

London is the world's top foreign exchange market

London

In the Forex trading market, London still seems to be the world's premier foreign exchange trading venue. Although in the aftermath of the Brexit referendum vote, the British pound has experienced a slump and an immediate fall in volumes, the city has managed to bounce back. The uncertain political environment has brought with it the challenges of containing and adjusting to volatile currencies. Yet, despite all the negative potential outcomes which could have resulted, traders still love London based Forex brokers for many reasons. First of all, the time in London sits neatly between the two-time spectrums. Open before the US markets and after the Asian markets. The language is certainly a vital aspect as when it comes to finance, English is the most commonly spoken language. Moreover, in London, traders may find one of the most responsible and flexible regulators. Despite the fact that the UK is one of the most preferred countries for trading, there are also many forex brokers for EU residents which offer them various favorable trading conditions.

The number of female and Millennial investors is on the rise

Forex Trading

When it comes to the investment trends in the Forex trading market, there has been noticed that Millennial and female investors are on the rise. There is no surprise that Millennials represent more than half of all online traders. They are part of the generation who has had access to the internet and the technological advancements from very young ages. Millennials are certainly the generation which has a strong connection with technology and connectivity.

Therefore, the reasons that stand behind the increasing number of Millennial investors are their entrepreneurial spirit thirsty for success and the way they take advantage of technology. Millennials have found the most effective way to combine their affinity for technology with their desire for conservative trading. As a result of the development of new technological platforms, they have been armed with applications and websites which has lowered the barrier to enter the Forex trading market. Unlike prior generations, they have real-time access to information and can easily copy the trading activity of an experienced trader.

Similarly to the trend of the younger demographic to online trading, it has also been noticed a rising number of female investors in the UK. Male investors still largely dominate the investment space. Yet, according to research conducted by the global research firm Investment Trends, the UK's Forex trading market is experiencing a rise of the female investors. Speculations based on gender equality suggest that men are the dominant participants in the Forex market as a matter of discrimination. However, historically discriminatory hiring does not apply in the case of the foreign exchange market. Nowadays, anyone with a computer and a good internet connection can trade. Therefore, the phenomenon of women empowerment is the reason that stands behind the rising numbers of female investors. To combat any discriminatory assumption, female traders have also shown excellent investment skills. Although reports suggest that women usually invest smaller amounts of than men in Forex trading, they get higher incomes. Males trade more frequently than females which leads to hyperactive trading resulting in a reduction in the net returns with a higher percentage compared to the investments done by women.

Why is the number of UK traders on the rise?

Forex Trading

There are many benefits and advantages of trading Forex that lead to the rise of the numbers of UK traders. It is estimated that UK traders can currently earn an average of 37.800 Pound Sterling annually. People from the UK have access to one of the largest and developed market for Forex trading which offers them optimal trading conditions. Although many of today's UK traders are part-time participants, they bring a powerful contribution to this market. They usually make their trading decisions without seeking professional advice with the purpose of earning an extra income. The accessibility to social trading or copy trading has also encouraged people from the UK to join this market. Because an internet connection is all that it is required to trade, they sign up to trading accounts easily. They no longer need to have trading knowledge to earn some extra money to improve their financial status. The Forex trading market is the most liquid one meaning that they can find a large number of buyers and sellers at any given time.

Changes in a country's interest rates also affect its currency through its impact on demand and supply of financial assets. However, the UK Forex trading market has proved to be a powerful one which was not affected by the uncertain political environment. The UK still remains an attractive foreign exchange market for investors leading to an increase in the demand for the UK's financial assets and for its currency.

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