Forex Trading in 2018

Learn What the Future Holds for this Industry

During the last year, the forex industry has evolved significantly and continues to change. Without a doubt, it is striving towards a legitimate trading environment.

Even if you compare the current forex trading environment with that of 2017, you will notice some major changes in the bonus programs and it’s been hard to miss the boom of cryptocurrencies.

These transformations are not unique but happen each year. The trade volumes differ and the traders also look to grow their business.

Since now we are more than halfway done with 2018, it is feasible to analyze where the forex industry heading and what the future is going to be like.

The current forex market is influenced by completely different market forces and due to the major regulatory measures proposed and implemented this year, the trends have changed. Some of the popular trading platforms have been the go-to choice for expert and beginner traders. Without a further ado, let’s take a quick analysis of the forex trading market in 2018. 

Strict Regulations

Strict regulations have been implemented in 2018 with a major emphasis on digital currencies. In order to guide cryptocurrency trade especially in Europe, there have been many attempts by the authorities to devise some legal frameworks. Moreover, the authorities are also looking to make the trading environment secure for legit entities which will benefit small as well as big traders from the enhanced security in the market. To sum it up, the future is looking bright for traders on the retail side. 

Market Automation

The Forex Trading industry is also finding itself in the colours of automation just as other industries. As compared to the previous years, the trading market is moving more towards automation and a lot of activities are now dependent on it. The reason why the market is opting for automation is to reduce the rising costs. Most of the retail traders are utilizing automation to save costs and attain better profitability. Besides the savings in costs, market automation also enables quick trades without any disruptions in the business. 

Rise of Cryptocurrencies

One of the biggest trends this year is the cryptocurrencies. You might have noticed cryptocurrencies integrate more into the Forex Industry. Not just they are being traded in the forex industry, but they are also being used as a payment method. It is also expected that within the next 5 to 10 years, the blockchain technology will shape up into something big that will act as a bridge between parties and play a vital role in improving the trading conditions. Moreover, it will also be able to perform the clients’ financial operations. Almost on all the forex trading platforms, cryptocurrencies are available and a lot of virtual currencies are also being added on the trading list as well as they are being used as a payment method for trading purposes. It is also worth mentioning that cryptocurrencies are still gaining a lot of attention of new as well as experienced traders. In the near future, it is also being expected that the cryptocurrencies will be included into the European legal framework and the advantages will be expanded to AML and KYC too. 

New Trading Trends in 2018

The Forex Trading market is becoming more civilized with each passing day. The small brokerage companies are being ousted from the market. On the other hand, the traders are becoming smarter in their approach to finding the right broker. Today, better rewards and bonuses are not the primary criteria for the selection of a broker but the technology they use and the provision for clients. The growing use of cloud-based platforms is also creating opportunities to trade in a different financial market which was not possible some years before. 

One of the best things to happen this year for Forex Trading is the rise in demand for social trading services. It allows the traders to share the results of trading and charts with the less experienced or even the novice traders. As a result, the new traders are able to make transactions generating the exact same results as experienced traders. 

On the other hand, the traders are still very much interested in algo (algorithmic trading). Many new services continue to provide better opportunities for traders to create their own trading robots. Thanks to some new and advanced platforms, the need to have programming skills is also not necessary. Using algo trading robots, the traders can automate a lot of their routine tasks and activities including technical aspects. 

What the Future Holds for Forex Trading?

Taking into consideration the current performance and the legislative changes, the future for Forex Trading looks bright with more room for new traders to make it big in the industry. The market value of a lot of major companies has also mushroomed significantly. The platforms that facilitate forex trading will also garner a lot of attention from the traders. 

In the near future, small brokers are expected to vacate the market for offshore jurisdictions and the European markets will attract more clients with their reliability and dependency. As mentioned earlier, traders are not attracted to short-term rewards and bonuses. The Forex Trading market is transforming into a complete financial institute that offers guarantees rather than anticipations. As the year further moves to its closure, more stability is expected in the market. If you are looking to break into the forex trading, it is a good year to make a start because ultimately, the situation will get better and you have a fine opportunity in your way to learn from more experienced traders and generate better rewards based on your decisions and not through platforms. There is a lot of matter available for new traders to make smart decisions and gain valuable experience along the way while achieving success in this industry.