The forex market is popular all across the globe due to the high chances of profits from it. The daily turnover of the forex market is recorded around seven trillion dollars from all around the globe thus making the stock and bond market look smaller.
Well, the forex market is mostly used by the traders to buy and sell currencies expecting them to alter to get profits. Forex trading was not accessible to some regions before a few years due to lack of proper connectivity and probably lack of required trading network contract for difference. But, since the rapid development of technology is witnessed in every corner of the globe, the situation is not the same now.
In the last few years, mainly amidst the first wave of the pandemic, the forex market has recorded a whopping 300% rise in forex trading accounts, all in just developing countries, mainly from Africa. Since then, forex trading is booming in the emerging market economy and making it more volatile than ever.
An emerging market economy (EME) refers to a nation that is slowly moving towards becoming a developed nation. Such a country has low to middle per capita income experiencing decent economic growth and investing in productive capacity.
The common reasons behind the popularity of forex trading
- Ease of Access
The percentage of mobile users around the world has increased to a whole new level, mainly in the last few years. Even the emerging market has a good number of mobile users, mainly smartphones. As per the recent survey, almost half of the world’s population is now accessing the internet from a smartphone.
As most of the renowned forex trading platforms are accessible from mobile, even the mobile users from the emerging markets are now easily attracted towards forex trading.
On the other hand, the compelling ad campaigns run by the forex trading brokers in social media platforms grabbed the attention of many people. So, no wonder that the trading accounts opened vigorously expecting higher returns.
- Enough information on the Internet
No trader sticks to a forex trading platform unless earning a decent amount from the trade. But, all information regarding forex trading, such as the use of the platform, way to deposit, and guide to earning money is available on the internet, even for free.
One can also easily find many videos on forex trading easily on YouTube, thus making it pretty easy for beginners to place a trade.
- Coaching for beginners
Several websites and videos provide coaching for forex trading beginners and help them progress in their experience levels from beginner to intermediate and then advanced. So, no wonder that the aspirants try the theoretical knowledge in the trading platform, thus increasing the trading accounts rapidly.
- Demo accounts
Most renowned and reputed forex trading platforms out there are now providing free demo accounts with the preloaded virtual amount in them. So, it becomes easier for beginners to gain experience in the forex market and learn about different options and features present in the platform.
The lockdown disrupted the lives of millions and almost all working employees were involved in work from home. So, they had easier reach to the forex market through the forex trading platforms and many websites as well.
Many workers who were looking for a way to earn a living, now found forex trading as a great opportunity and thus opened a trading account, thus playing a major role in the boom in emerging markets.
Scope of forex trading in an emerging market economy
As the forex trading platforms are getting closer to the potential traders, there is immense scope for a significant rise in the forex market. Besides, the coaching platforms are trying their best to earn profits by teaching the beginners how to trade in forex.
The trade enthusiasts as well as the pro traders are now claiming that there will be a rapid acceleration of the forex traders into the market. The profits claimed by the forex trading platforms will now become widespread with the help of influencers and social media marketing through ad campaigns thus resulting in significant growth in the forex market.
Nevertheless, it is also a great way for the people looking to earn profits with minimum time invested. But, the time should be invested in learning the fundamentals of the forex market and executing the forex trading strategy.