Trading on the forex markets (a portmanteau of “foreign exchange”) has been steadily gathering global popularity over the past five years or so. You only have to look at the growing number of specialist forex businesses and consultancies to realise that there’s a discernible snowball effect happening, and the industry is attracting more and more traders than ever before.

Part of this rapid growth is down to the perceivable ease of access that many people enjoy today. In previous decades, it used to be the case that foreign exchange trading was the sole preserve of highly educated businessmen and women who were afforded the chance to learn their craft at a top university or business school. These days, almost anybody with a keen interest in economics and the stock markets can start carving out their own slice of the pie relatively easily.

The impact of technology

Photo Credit: Sole Treadmill

Advances in technology have played a huge role in allowing this to happen. Fledgling trading platforms like Fintech’s Trading 212 are expanding into more and more countries and allowing people to buy and sell shares for free, rather than having to pay the typical commission fee involved with going through a traditional broker. There is also clear investment in developing intuitive, user-friendly forex apps for mobile devices, so that people can access their trading account anywhere with a decent Internet connection. These are significant factors that lessen the barriers to entry for many people.

For new entrants to the market who are weighing up which specific broker to sign up for, there are now dedicated websites like Forex Bonus that collate various promotions, joining bonuses and other forex offers in Australia and beyond. This means people can start their trading journey with a few complimentary dollars in their back pocket.

Thinking about getting involved with forex trading?

As with all types of trading, sustainable success in the forex market requires consistent discipline and a strong inclination to understand the market as it develops. It’s also a good idea to read into strategies that may potentially suit your own financial situation and aspirations. You don’t have to be a rocket scientist to start trading successfully, but it certainly does pay to become well-versed in risk analysis, the impact of major social and political events, not to mention the various technical factors and terminology of the forex world.

With this in mind, having a clear plan in place before you start trading is absolutely essential in order to choose a trading account platform that is well suited to your initial expectations and expertise, and to mitigate the risk of making reactionary decisions further down the line. Failing to do so is likely to lead to uncalculated investments that are fuelled by emotion rather than reason, which is never advisable. Setting financial limits is one thing, but sticking to them is always the real necessity.

If you’re about to jump into the foreign exchange market yourself, make sure to gen up on as much information as you can before subscribing to a trading broker.