Forex Trading to Reach US$ 7.8 trillion by 2019

( The total volume of foreign exchange turnover is expected to reach the stunning record mark of US$ 7.8 trillion daily by 2019, according to the American market research company, Aite Group. The same company estimated a total FX Average Daily Volume (ADV) to close at US$ 5.5 trillion by the end of 2014.

Considering that in 2013 the FX ADV came very closely to those same values at US$ 5.3 trillion, one very important question comes to mind. In the short span of just five years, what could possibly be the most relevant factor to increase FX ADV by a little bit more than forty percent?

Companies like CMC Markets might just hold the answer as to why the foreign exchange turnover will reach these record marks in such a short period of time. Many experts believe that the imminent and unstoppable rise of online trading companies – which offer investors a different type of trading called “Margin Trading” – are going to be the key players in this new market reality.

The reason being that with an online trading company, investors don’t need huge amounts of capital to begin their investments. Some of them even allow initial investments of as little as US$ 100, and they also offer several payment options, so investors don’t even need to leave their homes, let alone pay a visit to a traditional broker.

So it all makes sense. If more and more people – virtually anybody with Internet access – are now able to invest in the foreign exchange market, even if it’s just by small amounts, it is only natural to expect this immense turnover growth over the next few years.

The FX Market and its Effects in the New Zealand Economy.
Because the New Zealand dollar is now a fully floating currency, it has become considerably more attractive to investors worldwide, so much, that by the end of 2015 the total volume of this currency traded monthly reached the mark of NZ$ 205 billion. This value places the New Zealand dollar as the 10th more traded currency on the planet, with roughly a 2% market share.

New Zealanders can take full advantage of this market scenario, and not only by trading New Zealand dollars against other currencies but by having full access to all the currency pairs available to trade online – currently the most traded pair is the USD/EUR.

The rise of FX trading opens a variety of options that will impact New Zealand’s economy, and in a good way. People can now start having their own investment portfolios without the need of huge seed capital, most of them can just have these investments as some extra source of income on the side, without leaving their jobs.

Others might want to dedicate themselves full-time to this venture and begin trading not only foreign exchange, but other types of assets as well like market shares, indices, commodities, and even treasury bonds.

Bottom line is that no matter which type of investment you favor – be it passive sources of income like bank certificates, savings accounts, and government treasuries or active sources of income like real estate, market shares, foreign exchange, and commodities – investments are arguably the best possible way to spend your savings.

The more investors there are in any given society, the more return on these investments can be made. Successful investors can expand their current projects and create more and more job positions. Also by having successful returns, people are able to spend more and more money enlarging the liquidity flow in the market. A whole redistribution of equities is possible the more people begin creating investing opportunities.

Media Release on 25 Feburary 2016 by CMC Markets

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