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#1 02-01-2020 18:15:03

Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 2753

The evolution of forex brokers as of 2020

The evolution of forex brokers as of 2020

Forex brokers, as in any other industry, must stay ahead of the game to survive. The forex market is particularly competitive. For one thing, there is a lot of potential for everyone involved, given the daily transaction volume of $5 trillion. And second, there are a lot of stockbrokers who are competing for the same traders.

To remain competitive, brokers must therefore offer other investment types for their clients' trading needs. The most popular stockbrokers have at least 4 dozen currency pairs ranging from major pairs to minor ones. Additional assets are also available in the form of CFDs. This allows traders to access the equity, commodity and futures markets, all in the form of CFDs. Cryptos are also attracting more and more interest from traders; forex brokers have therefore included as many crypto pairs as possible in their portfolios, and this has become a recent area of ​​competition.

Forex brokers have evolved to adapt, and this new year will be very interesting due to the stabilisation of the crypto industry and the proliferation of blockchain technologies. It will therefore be interesting to see how brokers evolve in the changing environment of 2020.

The historical rise of individual traders

Like many things that preceded the Internet, forex marketers started in the offline world. It all started soon after President Nixon removed the U.S. from the gold standard to let the value of the USD float in 1971. No one could have predicted with precision how the Nixon shock would create a multibillion-dollar industry, but that's what happened. These offline stockbrokers included banks and major investment firms, as investing in currency for speculative purposes involved a lot of money just to participate.

Moreover, with the internet, we saw the appearance of Contract for Difference (CFD). Thanks to this new asset type, it was no longer necessary to have as much money as before and currency exchanges could be carried out with a lot of venture capital. The mixture of a growing prevalence of CFDs and the internet has contributed to the rise of forex brokers.

The internet has enabled brokers to offer their services globally. In addition, there has been a change in the way of investing. Instead of frantically shouting "BUY!" or "SELL!", traders could now place orders with a simple click of the mouse.

Brokers around the world began to understand that the innovation they offered made a difference just as much as their trading services, and the competition for the best trading platform began. Brokers could be classified into three broad categories - those who crammed as many assets as they could, those who made their interface easy to understand, and those who presented a nice design for their traders. Whichever view you take, there is no doubt that trading technology and services have become closely linked.

Currency speculation has long been reserved for an elite, but the internet and the advent of CFDs have changed all that, because now more people have access to the both knowledge and leverage. Brokers have even allowed new traders to learn through demo accounts, just to whet their appetite.

The proliferation of forex brokers

Since then, the forex has gone from a moderately obscure setting to a broad and open system with the appearance of programming sites for automated trading, as well as rampant marketing efforts. In addition to availability, the opportunity to enrich yourself while staying at home clearly interests many people.

This has happened all over the world, not just in major financial centers like London and New York. Forex transactions became very common in other European countries and very quickly, developing economies also got involved. Nowadays, it is common to find forex brokers with offices in several countries, including some developing countries in Africa and Southeast Asia. So it would seem that the foreign exchange market has truly become a global industry with multiple participants like never before.

"Anything worth having is worth going for - all the way." - J.R. Ewing



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