The Forex Trading in 2019 – How the Year is Going to Be for the Industry?
2018 proved to be a fruitful year for the Forex industry as it showed consistent growth and garnered huge amounts of investment. Analysts are sure that the industry is striving towards a legitimate trading environment. Last year, a lot of noticeable changes have observed in the industry including the rise of cryptocurrencies and the increase in bonus programs. Such transformations have doubled the interest of the existing as well as new traders to come and try their luck in this highly rewarding yet risky industry.
Since we have stepped into 2019, it is a great time to forecast how this year is going to be for the Forex industry and the stakeholders involved. Currently, there is a lot of influence on the market by numerous market forces and the implementation of new measures have forced the trends to change. These implementations have allowed the traders to compare different trading platforms and choose what they feel is right for them.
New & Strict Regulations Benefitting the Traders
Last year i.e. in 2018, strict rules were introduced and implemented with a major focus on the digital currencies. The authorities in the Europe made several attempts to devise some legal frameworks to guide and regulate the digital currencies. Furthermore, the authorities also invested ample amount of time to make the trading environment secure for the legit entities that will prove to be quite beneficial for the small and big traders due to the improved security situation in the market. This is the reason why we can conclude that on the retail side, the future is quite bright for the traders.
Market Moving Towards Automation
The trend of automation is also coloring the forex trading market just like other industries. As compared to the past, the forex trading industry is gradually moving towards the automation and why not, the amount of relief and utility it provides to the stakeholders is just commendable. One of the major reasons why the market is moving towards automation is that the costs are increasing quickly. In order to control the costs and improve the profitability, the retail traders are utilizing automation as a tool. Not just on cost control, automation also enables quick trades without any disruptions in the process
Boom of Cryptocurrencies
One of the biggest things to watch out for this year is the cryptocurrencies. Cryptocurrencies are well on their way to be indulging well into the forex industry and with each passing day, they are integrating quite nicely. Not only are cryptocurrencies being traded in the forex industry, but they are being utilized as a mode of payment as well. Some analysts are also of the viewpoint that within the next 5 to 10 years, the blockchain technology will evolve further to a level where it will act as a bridge among parties and play a significant role in enhancing the trading conditions. Other than that, the advancements in this technology also suggest that it will also help in client’s financial operations. The good thing about the cryptocurrencies is that they are available on almost all the trading platforms where they are traded as well as being used as a payment method for trading purposes. In 2019, it is quite evident that they will be included into the European legal framework and the benefits will be available to AML and KYC as well.
Trading Trends to Watch Out for in 2019
In 2018, the forex market started becoming more civilized every other day. The reason can be the elimination of small companies from the market. In addition to that, traders are becoming smarter in their quest of finding the right broker. The major difference has been the focus on the technology being offered by the broker instead of bonuses and rewards. The growing use of cloud-based platforms is also helping to create a lot of opportunities to trade in a different financial market that was not even on the cards a few years back.
The best thing that happened in 2018 for the Forex trading market was the increase in demand for the social trading services that allowed the traders to share the results of their trading activities with the novices or inexperienced traders. Through this approach, new traders learned about making transactions in a way that they could earn more and better profits. This trend will continue in 2019 as well and better results are expected out of it.
This year, it seems like the interest of traders in algo trading (algorithmic trading) is still not over. In this regard, the services of many new providers are helping to create better opportunities for the traders to create their own trading robots. With the massive development in technology, these advanced platforms also do not require programming skills to create robots. Through the robots, traders can automate their routine tasks and improve their profits.
What the Future Holds for Forex Trading?
With all the above discussion, it is quite clear that the future of Forex Trading market is looking bright in 2019 as well and it will continue to grow. The major credit will go to the European authorities for devising a legal framework and implementing the legislative changes. More opportunities will be available for new traders to make a name for themselves in the industry and it will also pave way for more platforms to come forward and facilitate the forex trading activities.
Other than that, small brokers will continue to vacate the market for offshore jurisdictions and the related markets will attract more clients with their dependency and reliability. Traders will also keep their focus on the available technologies to keep their trading activities and practices automated so that major profits could be earned without sticking to their computer screens throughout the trading time period. People who are looking to break into the forex trading market, this is a good year to make the decision as the opportunities are quite many. The trading platforms are also providing learning material and social sharing will allow you to master the art of trading in no time – something that all new traders look for.