Why Forex Trading is Growing


Forex is not, in any way, a new phenomenon. For centuries, humans have, in one way or the other, exchanged one means of payment for another. As a matter of fact, Jewish Talmudic writings made allusions to it.

However, as ancient as it is, currency trading only became a formal enterprise in the 17th century when the first physical market for trading currencies was established in Amsterdam.This officially made it possible for people to profit from the variations in the exchange rates of currencies in relation to one another.

Hundreds of years after, currencies have become the most widely traded of all financial instruments. In fact, approximately $5 trillion is traded in daily volumetoday. The New York Stock Exchange, the NYSE, the largest stock exchange in the world, has a daily trading turnover of just $22.4 billion.

The Forex market, since, has been virtually an exclusive preserve of the institutional investors. Only banks, corporations, and other large players could access its opportunities. However, from around 1996, retail trading has been gaining a lot of traction and now accounts for approximately 5% of the total market.
That isequivalent to around $300 billion in daily trading volume. If this segment continues to grow at such a fast pace, opportunities for retail traders will increase. And they will be able to exert more force across the activity of the entire Forex market.
Here are the main reasons responsible for the growth of this dynamic financial market.

The Nature of the Market
The nature of the Forex market itself makes it easy for it to grow at a phenomenal rate. It is decentralised, meaning that it has no central physical exchange anywhere in the world. Instead, it is a market that occurs across connected networks all over the world.
Even though this nature of the market has traditionally made its participants highly vulnerable to fraud, regulatory requirements have changed over the years and made the industry more compliant. Now, retail Forex brokers have to be duly licensed before they can open their doors for clients.
Moreover, almost every country in the world has a regulatory authority that haswatchdog roles over this financial market. This reality has further helped to give it more legitimacy over the years.
And with increasing legitimacy has come increasing popularity. Now, more ordinary individuals can freely join the market to benefit from its immense opportunities, with minimised fears of fraud.

24-Hour Access and Low Barrier to Entry

This is an extension of the advantageous nature of the market. The Forex market has some features that provide specific opportunities that you will not have with any other financial market in the world. Daily Forex Signals is on 24 hours for 5 days in a week!
Thus, you will always have the opportunities to trade — at least more than in any other financial market. And also, unlike other asset classes, you can start trading Forex with as low as $50!

If there is a factor that has considerably made the Forex market extremely popular, it is technology. Without the internet, for instance, access to this market would never have been democratised. It would have still remained the exclusive playground of big investors.
Now, virtually everyone and anyone, with just an internet connection, can access this market. In this regard, brokers have tremendously helped too as they strive to improve their services by adopting fast, accessible, and reliable technological tools in their operations.
They have been seeking to increase their execution speed and reduce the traditional risks associated with Forex trading. Also, they have been seeking to give their clients the best trading experience.
And as their technologiesbecome faster, more accessible and more reliable so will the popularity of the Forex market increase too.

Brokers' Promotional Campaigns
The efforts of online retail Forex brokers to promote the business cannot be denied. They do this using many incentives such as low spreads, high leverage, demo account, and free educational resources.
If these efforts continue, they will go a long way to enhance the popularity of the trade. 

Forex trading will become increasingly popular. And you should not deny yourself of the opportunities it has. With as little as $50, you can start it. And if you need a reliable signal service provider to give you an edge, 1000pip Builder is here.

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