In all honesty, you don’t have to look too hard to find reasons that justify the popularity of forex trading across the globe.
After all, the global forex market is worth an incredible $1.93 quadrillion (or £1.49 quadrillion to you and me), which is estimated to be 2.5-times larger than the world’s cumulative GDP.
While there’s no doubting the popularity or competitiveness of this space, however, the question that remains is what has inspired the increased interest in the market? Here are some factors to keep in mind:
- It’s a Lucrative Side Hustle
Let’s face facts; there are numerous ways to increase your earning potential in the digital age, from creating a money-spinning blog to selling your products directly to consumers online.
We can now add forex trading to this list, with technological advancement having long since broken down the market’s barriers with the use of a forex trading app and created a scenario where both part-time and aspiring traders can make their mark by investing in currency.
Not only has this pastime become more accessible down the years, but the rising prominence of online brokerage sites has also made it easier for traders to profit through forex trading.
More specifically, these platforms offer a free-to-access forex demo account, which simulates real-time market conditions and enables you to hone your strategies in a completely risk-free environment.
2. It’s Allows You to Learn Within a Community of Trading
If you’ve ever heard of social trading, you’ll know that the forex market is now home to a large and bustling digital community that’s packed full of know-how, experience and considerable insight.
What’s more, there are even dedicated social trading platforms through which investors can collaborate, share ideas and publish successful strategies, with seasoned traders providing the benefit of their experience and blazing a trail for less experienced individuals to follow.
This provides a huge boon for inexperienced traders, who can use the success of others as a platform that affords them a unique competitive edge in a crowded space.
3. It Enables you to Profit Even in a Depreciating Market
On a final note, it’s important to consider one of the key benefits of trading forex, which revolves the status of currency as a derivative asset class.
This means that you can effectively trade currency pairings without assuming ownership of the underlying asset, creating a scenario where you can speculate on price movements and achieve a profit even as the value of the market declines.
This is undoubtedly central to the enduring and growing appeal of the forex market, as it creates an opportunity for individuals to boost their profitability regardless of the prevailing conditions and their own philosophy as traders.