The Forex Exchange Market is the global and the biggest market for trading of currencies. It has changed remarkably in 2017 and has moved towards a legitimate trading atmosphere. The Forex industry is dynamic and changes constantly. The Two main aspects that have influenced the Forex Industry in 2017 are:
- Serious steps have been taken by the major European regulators to tighten control over the Forex Market. A new level of transparency is now provided to the clients to match the new MiFID II directive. The new rules forbid bonus and rebate programs as a result, many companies have moved their business to some less regulated jurisdictions in order to give clients the familiar services like bonus programs.
- Cryptocurrency trading attracts a huge number of people all across the world due to the growing popularity of digital currencies and their great volatility. Bitcoin has reached another unusual high. Brokers, through the platforms that are familiar to the traders, offer their clients an opportunity to trade cryptocurrencies. Hence, cryptocurrency boom is one of the reasons that influenced Forex exchange market.
Cryptocurrencies are the biggest trend of 2018 so far. There is an improvement of trading atmosphere and performing client operations as a result of the new level of cooperation between parties. Well-known companies are already trading in cryptocurrencies. It is also expected that cryptocurrencies will be included into the European legal framework to enjoy the benefits of these instruments could be used for the procedures like simplifying AML (Anti Money Laundering) and Know Your Customer (KYC). This also provides safety to retail clients with an opportunity to work with Financial Ombudsman and to take part in the Compensation Fund.
Lately, it can be seen that there is a trend towards more civilized trading. Traders are getting choosy in picking the broker as the small brokerage companies which operate using quasi-legal schemes are being removed from the market. Traders are now selecting on the basis of company’s proprietary technologies and provision of the clients with the convenient products and services and not on the basis of the number of bonuses and rebates. The demand for social trading services is pretty strong as it allows sharing the result of trading, trading signals and charts. It gives opportunity to the new traders to make transactions with the same results as veteran traders.
In general, for the next several years the clear trend will be consolidation of market players amid increasing legislative pressure. Forex market will continue to grow as there is enough scope for expansion. Forex market will convert into a strong financial institution with the corresponding requirements and guarantees. . Due to the presence of improved transparency, the small brokers will leave the European market for offshore jurisdictions and European companies. It will also attract client who are not ready to sacrifice their reliability so as to receive trading benefits.