Britain is one of the world-leaders in foreign currency trading. The country’s advancement in trading foreign currencies took place shortly after the decision to leave the European Union. According to financial analysts, Britain is expected to be one of the world leaders in Forex trading, even after they effectively leave the EU.
Although only a few months back analysts have claimed the Brexit will negatively impact Britain’s positioning as a business leader and financial pole, the reality is different. Its status as a foreign exchange player has been consolidated, rather than weakened.
One of the most interconnected markets around the world is now, mainly concentrated around the trading poles in London. According to this Reuters report, the forex trading volumes in Britain have grown by 23% in the last three years. This sets the record daily average traded at 2.1 trillion pounds.
Reuters gets into details furthermore, and according to the, 2/5 traders worldwide are situated in the Kingdom. But more info on how is Britain to take the lead in the forex game, in the following paragraphs.
The Average British Forex Trader: A Portrait
Forex trading was previously seen as a great investment by older males, with more business experience. Today, the typical British trader disrupts the patterns and changes the game with their new views and strategies.
The typical British trader is no longer interested in business and politics, and neither in economics. According to a recent report, they are rather young males, younger than 30, with a keen passion for football and digital currencies. Their curiosity and easy access to informational resources online enable them to develop and implement fresh strategies when it comes to Forex. Also, forex and stocks are no longer their main interests. The young British currency trader is interested in crypto.
Although they make generous income from trading, they are more likely to drive modest cars. Low-end hatchbacks seem to do the job just right, in their case. They are tech-savvy but frugal. Instead of purchasing the latest Apple iPhone model, they are more likely to choose Samsung phones and re-invest the difference in money.
British traders are also good earners. During the past few months, the average earnings have increased significantly. The average income from currency trading is situated above 35,000 pounds. A few of them reach a value of approximately 80,000 pounds, but these cases are rare.
Women Traders to Disrupt the Forex Market
British women are more likely than other women to enter forex trading. According to some recent data, less than 20% of the world’s online traders are female. Although Asian women are more likely to trade foreign currencies, the number of females in the UK who choose British Forex brokers to trade on currencies has increased by 10%. Although the numbers are fairly impressive, women traders still have a lot to learn from their male peers. Males trade more frequently and have higher earnings; however, they also have higher reduction rates per year.
Millennials Enter the Currency Trading Game
Millennials make up for more than half of today’s traders. Yearly, the percentage of traders aged 25 to 34 of growing. The percentage of older traders, aged 45 or above, on the other hand, has decreased at a similar pace. What makes Forex trading more popular among millennials is the low barrier to entry the game. Although in the past trading was an economic activity handled by experienced individuals, today, it is incredibly easy to replicate others’ strategies and techniques until you develop your own.
Second, crypto trading is one of the most popular methods used by younger investors. Up to 80% of the currencies traded by millennials are Ethereum and Bitcoin.
So, what has generated the fast evolution of the Forex market in Britain?
Financial analysts and bankers agree that the fast evolution of the Forex market in the UK can be attributed to high rates of political uncertainty surrounding Brexit. The trade wars between USA and China also have a word to say in this situation. London’s geographical location, between the US and Asia, makes it a hot spot for political and economic turbulence. When they appear, the market reacts.
Besides, London seems to enjoy incredibly advanced Forex trading hardware and software. Because of this reason, moving Forex operations to other regions becomes a tad complicated. Once again, its geographical position has helped tremendously in becoming one of the hottest trading poles in the world. Throughout history, some of the biggest operations took place during London trading hours. It’s convenient for all parties involved.
No matter how many tensions and uncertainty the Brexit raises, it will not impact how Forex trading is operated in Britain. In fact, it might fuel more investments in the area.
Forex Trading and Brexit
Yes, Brexit is an impactful political and economic event. In fact, in the UK, the forex industry is one of the EU-Britain battlegrounds. As a response to Britain’s intentions of leaving the Union, EU leaders speculate the situation and want to take British bank’s rights to sell derivates of the currency trading market. This will be used by investors to prevent fluctuations in the price of currencies for their EU-based clients. But, as we mentioned before, London traders have clients in all parts of the world, not only the EU.
To say Brexit doesn’t influence at all Forex Trading in the Kingdom would be a lie. Many huge players in British trading have moved part of their operations to cities in Amsterdam or Ireland. However, these events have been exaggerated by many, according to experts in the field. After all, banks will continue to maintain the biggest part of their international operations in the city.
In times of political and economic uncertainty, Britain succeeds to play hard and win hard. Because its beneficial time zone between other hot trading poles, London will remain a hot trading pole itself. This and the continuous rise of millennial traders are also important points in the development and huge potential of Britain in Forex trading.