Since the commencement of the Covid lockdowns, online trading volumes have skyrocketed, and there is no indication that this trend will reverse, explains brokers Trade Nation in this article.
The initial shock of the pandemic has been absorbed by the international community. Lockdowns are being removed in certain countries, and customers are becoming acclimated to the life post-lockdown.
As such, for many the future appears to be uncertain, with many economic analysts forecasting that the economic fallout will linger for a long time.
In response to the economic uncertainty still lingering today, online trading has flourished as a legitimate means of making a career, and the industry as a whole is expanding rapidly.
Popular brokers like Trade Nation have seen a spike in the number of traders opening new accounts, with new traders joining their ranks every day.
To understand this trend, in this article we take a closer look at the pandemic factors which sparked the surge in online Forex trading.
1.The Forex market is easily accessible
An online Forex trading account can be opened with as little as $100, or even less than that with some brokers. The trading capital requirement is quite low when compared to other financial markets.
In addition, the Forex market’s accessibility means that you can open a trading account from the comfort of your home or office. This was particularly useful during lockdowns when many people were forced to work from home – or seek new avenues of employment online.
Online registration, document submission, and a deposit to your Forex trading account are typically the only steps required to begin trading Forex.
Because of its ease of use, Forex is an appealing option for traders who want to take advantage of the best of both worlds.
2.Access to trading technology
It is significantly easier to trade online because of developments in software. Every year, new Forex trading platforms emerge, and existing trading platforms receive regular modifications to keep up with the ever changing market.
Compared to many other online trading markets, Forex is one of the most potentially profitable markets to trade on because of technology improvements.
In addition, third-party software companies who provide numerous add-ons and plugins expand the retail Forex software business.
MetaTrader 4 and MetaTrader 5 are two of the most popular systems for trading on the internet. It’s because of this that Forex is a new and exciting way to trade online for many people during the pandemic.
3.The FX markets decentralised nature expands the opportunities for entry
The forex market has no central exchange or regulation because it is an over-the-counter market that operates globally says Louis Schoeman from Forexbroker.ng, an African forex data monitoring platform.
There are no surprises in a decentralized and (almost) unregulated market, such as unexpected dividends or massive company losses such as in the equity markets.
Added to this, the fundamental precepts of Forex trading a fairly straightforward, meaning that people can enter the world of Forex trading from a variety of different backgrounds.
Availability of online trading resources
There is a wealth of educational Forex material online, from e-books to webinars to online courses, so that individuals can teach themselves Forex from the comfort of their own homes.
Added to this, much of the Forex training material is available for free, or else is extremely affordable, further lowering the barrier to entry for many individuals who need to create a supplemented income, or find an entirely new career, during the pandemic.