An emerging market refers to a country or a region that is coming out of the traditional economy and growing its productive capacity. It is often a part of a developing country enacting its way towards a developed one witnessing rapid industrialization, higher living standards, and possibly a free market economy as well.
Thus, the leaders of those markets often keep eyeing the global market to catch up with the trends and be a part of their growth to elevate their nations. As per IMF, there are more than 150 emerging markets with major players including India, China, Brazil, and Russia, etc.
Well, now forex trading has been booming in those emerging markets at a rapid pace for a decade. Currently, almost every graduate or working person in the emerging markets is familiar with the forex markets and the chances of higher returns and the risks involved in it.
During the pandemic, the former colonies of European states such as South East Asia, Vietnam, South Africa, Nigeria, and Egypt were among the first to witness the forex trading boom in their countries. Here is what you should know about the growth of people preferring to trade forex.
Reasons why forex trading is booming in emerging markets
Several reasons influenced new traders in the forex market, but here are the few popular reasons that impacted the most
- Ease of accessing forex trading platforms
Forex trading is available to everyone, all it requires is an internet connection with any devices like mobile, tablets, or PC. Besides, one can find enough information on the forex market to progress in their level of experience and empower the basic strategic skills easily on the internet.
So, no wonder that the simplicity of accessing the forex market and placing a trade-in is the topmost reason behind the huge popularity of forex trading.
On top of this, beginners with less experience in the forex market don’t need large amounts to place a trade on any chosen currency pair.
Additionally, demo accounts are also providing by almost all leading or reputed forex trading platforms out there. So, one can understand the market with a practical approach and start getting returns with their experience itself.
- Leverage from the forex trading platforms.
Even the small amounts that the beginner needs to trade in a currency pair are complemented with the favorable offerings from the platforms, in the form of leverage. By using this, one can trade with more amount than the present capital in their wallet.
As most traders in the emerging market are interested in just the profits and not the currency to choose, they are surely finding forex trading compelling like TradeTech Markets Limited. Well, why not, as one can get the returns that are possible only with higher volumes, but with small amounts.
- Simplified trading platform
Thanks to the rapid advancement of technology and thus the algorithms of the forex market. Now, the software for forex trading is simplified to a level where even a novice can place a trade and indeed get higher returns consistently.
Furthermore, several trading platforms provide the same interface and results without even needing to install them on your computer. All you need is a browser with an internet connection and that’s it, you can start trading forex on the go.
- Most liquid commodity
Foreign exchange currencies are probably the most liquid commodity in the world. Although there is a minor difference in the liquidity of currencies, it is regulated by higher authorities from low liquidity ones with perfect convey.
- Ease of communication
One of the main reasons behind the significant growth of the forex industry is the simple communication features. Nowadays, most entry-level traders are knowing about the forex trade and the related platforms from popular social media platforms, ad campaigns, and forums. Besides, even while trading there is no language barrier as both the UI and customer support is favorable for an average trader for a specific region.
Due to all these reasons, now the traders from only the emerging markets rose around 300% only in the past few years, The COVID-19 pandemic witnessed a significant rise in traders during the first lockdown which is remarkable.