How Digital Access Changed Forex Investing
The world of investments has undergone a great evolution in recent years, mainly due to the increasing importance of the digital element. It is thanks to the latter, in fact, that a previously niche market, such as the currency market, has now become "almost" mainstream. Certainly, the barriers to entry have been significantly lowered, so much so that today it is also the prerogative of aspiring traders and non-professional investors. For a look at how this landscape could shift further, see central bank digital currencies.
The Case for Forex as the Future of Investing
In light of this simple truth, one might wonder if forex investing represents the future of investments, therefore an activity practiced more or less by everyone, such as opening a current account, buying shares or BTPs, etc. Whether such widespread practice makes sense raises a related question; see gambling trader or professional trader.
In favor of this thesis is precisely the technological context, and the direction it has taken the world of online investments. Technological development allows anyone to trade, bypassing not only the limitations deriving from costs (now lower) but also the technical constraints. Today you can trade with any computer, even a mid-low range one, and in some cases even from your mobile phone.
The informational issue also stands out in favor of this thesis. The online world, as everyone knows, allows for a transmission of information and a sharing of knowledge like never before. Everyone can become a trader: the web is full of video courses, ebooks, training material, etc.
The Case Against: Culture and Capital
However, the elements against the thesis "Forex future of investments" should also be noted. The first is didactic: the lack of investment culture. The common people, with some exceptions, are devoid of it. And, unfortunately, unlike pure and simple notions, it is difficult to learn. Certainly not impossible, but it is still a significant obstacle.
The economic issue also represents an obstacle. Sure, costs are low. Today it is possible to open a Forex account with a few hundred (if not tens of euros). This does not mean that it is a functional choice. The size of the capital is still today a fundamental element in determining the hopes of speculative gain. And, inevitably, large capital is the prerogative of a few.
Where Forex Really Fits Among Investments
Even if Forex is unlikely to replace traditional investment instruments, it remains an alternative to consider for those who want to quickly make their capital bear fruit, perhaps at the expense of some security guarantees. For how it compares with another leveraged market, see forex trading vs. futures.
