2020 has been a challenging year. With the COVID-19 pandemic shutting us all up in our homes, people have been getting a little stir crazy. And it doesn’t help that most of us have had to take our work lives into our home. BBC News even talks about how work might drastically change forever in light of the pandemic.
And now that travel is out of the picture, we’ve got a lot of time on our hands. So, you might be looking for a productive way to use it. Well, why not consider forex trading?
Here are three reasons why it would be a good idea to get into forex trading before the year ends.
1. It’s profitable
Looking for some extra income? Look no further than the forex market. It’s the biggest financial market in the world — three times larger than the derivatives market, and 35 times larger than the stock market. And not just in size, but also capital. It’s also the most liquid market in the world, with an estimated daily trading value of £3.5 trillion.
The forex market is also profitable because of the nature of currencies. Their value can (and will) depreciate, but it will never drop to zero. This means there will always be value, even in a ‘bad’ deal.
2. The market is accessible
Despite the pandemic, the forex market is still very much accessible. All you need is a smartphone and Wi-Fi connection to start. FXCM walks users through how to open a forex account, detailing how they are three steps you need to accomplish to open your very first trading account. Just select your location and platform, fill out their application form, then log in to the forex application with the details provided to you. From there, you can start trading. Additionally, the requirement for starting capital is very low. You could start trading with £1, or even less, depending on the trading platform.
For beginners, forex trading might seem like a daunting task, but don’t worry. Accessibility also applies to how easy it is to learn about the market. Many forex trading applications come with the option to simulate trading with a demo account. This is a great way to learn about the ins and outs of the market — risk-free!
3. Popular currencies are forecasted to grow in value
With talks on Brexit almost finished, we now have an idea of what this might lead to in the future. The Euro is likely to decrease in value, as London was the top financial centre in Europe. Losing it will put a dent in the rest of the continent’s economy. On the other hand, it is sure to boost the value of the British pound.
As for the American dollar and the Chinese yuan, these have weakened due to the countries’ failed trade negotiations. The Hong Kong protests have also lowered the value of the yuan. These have been detrimental to the Chinese yuan and how it pairs with other currencies, like the Australian dollar. Despite these setbacks, the issues are forecasted to be resolved early next year. So, it’s ideal to start learning about the trade now, to be ready for when values are bound to go up.