The foreign exchange (Forex) market is the largest financial market in the world.
According to a survey by the Bank of International Settlements (BIS), trading volume in the Forex market topped $6.6 trillion in 2019. Recent information gleaned from the Nasdaq Capital Market, one of the largest equity markets in the world, shows that the average daily volume in Jan. 2022 was roughly $1.5 trillion. Even with these metrics, the sheer size of the Forex industry is difficult to conceive.
Despite its immense size, a report by IMARC Group stipulates that the market will grow by a compound annual growth rate (CAGR) of 7% between 2023 and 2028 and that it will reach $1.1 trillion by 2028. The size, volatility and popularity of this market have attracted over 10 million traders around the world, and it continues to be a popular destination for those aiming to make trading a profession.
While it has quickly grown in popularity, the Forex market in its current form is a relatively new one, and problems may lurk within the market’s infrastructure. Specifically, some Forex brokers have reported having a difficult time evolving as soundly as their counterparts in other financial markets.
Problems With Forex Brokers?
Forex brokers have faced difficulties with regulators and have had to fight off negative reputations consistently.
With the intention to create a high-return environment for traders, many brokerages offer leverage, a tool used to trade with more capital than one has. The size of leverage has been a topic of stringent debate between regulators and brokers, as the former sees them as highly risky and predatory instruments aimed at an uninformed retail community. Brokers argue that it’s simply a tool for capital expansion.
Their sometimes turbulent relationship with regulators has made it difficult for brokers to grow, improve their reputation and develop quality products. While marketing your own services is a standard practice in other industries, regulations in the Forex industry make this foundational concept difficult to replicate for brokers. This shortcoming trickles down to the brokers’ financials, increasing customer acquisition costs and decreasing customer retention.
Not all difficulties arise from regulations. Certain Forex brokers have struggled to grow and improve their reputations because they do not focus enough on technology outside of trading. Technology is necessary to streamline bureaucratic tasks like depositing user funds and managing identification issues, but many brokers neglect to add these to their repositories.
T4Trade: A Leading CFD Broker
As a leading contract for differences (CFD) broker, T4Trade has looked to stay on top of industry trends and develop a robust trading experience for Forex traders.
T4Trade has a cutting-edge trading platform, called MetaTrader 4, which gives users a host of top-quality functionalities. The platform provides fundamental and technical reports, automatic alerts on price fluctuations and customizable tools. Traders can also open up a demo account to test their strategies for statistical significance and use the platform via mobile phone, web browser and application.
T4Trade grants traders access to the world’s most-traded Forex pairs while ensuring spread remains minimal for their account holders. With no commissions and a minimal initial deposit, the barrier to entry is extremely low. Additionally, experts can use the leverage tool to help scale their trading, allowing large, but manageable, trades.
Perhaps most importantly, T4Trade is a registered broker that is authorized and regulated by the Seychelles Financial Services Authority. T4Trade has worked hard to ensure it is a safe and legitimate broker for CFDs, following strict guidelines while also providing best-in-line services.
For more information on T4Trade, click here.
Featured Photo by Ibrahim Boran on Unsplash
This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.