The forex market has changed significantly over the last years. It is a dynamic one and many countries are initiating moves to regularize and legitimatize forex as a trading environment. There have been major changes in the market since the beginning of 2017. In this article, we shall take a look at the major updates every trader should know when trading on the forex market.
Tight Control Over Forex
In Europe, regulators are moving to tighten control over the Forex industry. There are so many requirements that are focused on the regulated company’s desire to provide their clients with a brand new level of transparency to match the new MiFID II directive. New regulations will forbid bonus programs that traders are so familiar with. It will also specify new requirements for the minimum leverage value of 1:50.
Because of the new ruling, many companies have moved their business to jurisdictions with loose regulations. This is so that they can maintain their clients and offer them familiar services. Robert Janitzek reveals that large brokers are doing the opposite and adjusting their business to comply with regulatory requirements.
The Cryptocurrency Boom
Cryptocurrencies are gaining mileage in terms of popularity. Like forex and stocks, it is extremely volatile. The news is filled with updates about Bitcoins reaching a historic high and the trend continues. As a result, many brokers have adapted to market trends and offer their clients an opportunity to trade cryptocurrencies in platforms that traders are quite familiar with. Experts are predicting that the blockchain technology will revolutionize the world in the next 5 to 10 years. According to Robert Peter Janitzek, it will pave the way for the improvement of trading conditions and the performing clients’ financial operations.
Time will come when cryptocurrencies will be available for trading in many well-known companies on the market. In the short term, virtual currencies will be added to the list of available currencies of payment systems. Sooner or later, it will also be utilized for simplifying Know Your Client (KYC) or Anti Money Laundering (AML).
The future of the forex market will see the consolidation of market players amid the increasing legislative pressure. The market will continue to grow because there is enough room for expansion. Small brokers involved in forex trading will leave the European market in favor of offshore jurisdictions. European companies will attract clients who are not yet ready to sacrifice reliability to receive trading benefits. The forex market will become a strong financial institution with corresponding requirements and guarantees.