Have you heard about the crashes of the forex market? As we have discussed in our previous article that knowledge about this trading market is paramount to success. A new trader must be trained otherwise he has to put his money in hell.
The brokers make fools of their clients by using fake schemes. That’s why some of us become confused about the validity of the forex trading market.
Will the forex market ever shut down?
The short answer to this question is No. This is the only market that will last forever. It is a worldwide marketplace where you can trade through different currencies. Four main factors will help forex to be lasting forever. Despite these elements, some hurdles may cause crashes happened in forex trading.
It will never end up as it made transactions of about $5 trillion and that is increasing day by day. There are thousands of forex brokers but choosing the best one is the base of trading. As there are a lot of scams made by unregulated brokers. So be care full while using a demo account.
There came an unexpected surge in the forex market that surprised the global traders. Analysts called it the Flash crash because of its great effects on the market. This happened before 2016 when the currency dropped down its value suddenly.
How can we say the forex market will never shut down?
Here are some basics that will help you to understand this trading market better.
So, let’s dive into this article…
4 Main Factors of The Forex Market Never Shut Down
It is shocking news for traders that in the forex market (foreign exchange market) about 90% of traders have to face the loss of money. And in the end, they give up forex trading. So, new traders must get proper knowledge about this market.
If you entered this trading world without any strategy, it is like you have no motive for trading. That’s why a new trader must know the basics of this market by using a demo account.
You can check out our detailed article about forex trading is a waste of time or trading on forex worth it.
Forex is a world-famous market where transactions are managed on daily basis.
Here are some reasons why the forex market will never shut down…
1. High Fluidity
The main reason for forex lasting forever is its high fluidity. Liquidity is a kind of ability that is an advantage of getting change into cash quickly without any discount.
So, it can be said that the forex market is involved in high fluidity. In forex trading, we can easily change our large amounts into foreign currency at very low rates.
2. Less Investment
Here is good news! You can start forex trading with a very minimal amount. Yes, it’s true…
For newcomers, brokers utilize the benefit of demo accounts.
Practically, such accounts help them to understand forex trading. As you know brokers provide these accounts so these are funded with fake money. A new trader can start with a minimum amount of 100$.
There is a small or micro forex account that has a signup option for investors to invest in this market. The basic purpose of this small account is to train up the trader for risk management. When he becomes a master in it, he can move towards regular forex accounts.
3. Available 24 Hours
It is a market that works round the clock and never stops. It is available for 24 hours and 5 days per week. The forex market is always open but on weekends it will close only for retail traders.
It is another big reason that stops this market to be shut down. If you want to trade in the forex market at any place or time, you can do that easily. Because it is a 24 hours market and always open for trading.
4. Fewer Transaction Charges
The forex market is the only one that allows minimal transaction cost. The transaction cost is set up into the charges in the forex market, which is named Spread.
Spreads are a difference between selling and buying rates. So, fewer transaction charges are another reason for forex trading to last forever.
3 Hurdles to Make the Forex Market Go Away
Despite all the above reasons for making forex lasting forever, some factors create hurdles for this market to go away and facing crashes.
The main three reasons for this are listed below:
● Unlimited Brokers
As we know there are a large number of brokers who are trading in this market. Unlimited brokers are the main reason behind the big issues and scams of this market. They can create such problems that will wipe out this big trading world.
Why do about 90% of traders lose their money? Unregulated brokers are the main hurdle for this issue. Nowadays, it is common for brokers to earn money by cheating on their clients.
They misguide their customer and provide them with outfitted accounts. So that they can easily fill up their pockets. So, it is an important factor to choose the right broker. Before selecting the forex broker, a trader must check his online reviews and services.
For broker choice, everyone should select a regulated and low spread broker. ICMarkets broker is the best example of a low spread and regulated broker out there.
It is the best way to check the validity of that broker.
● Wrong Forex Indicators
Another stumbling block in the forex market is the wrong signals. Usually, forex indicators are the form of a short message that contains useful information for the trader. It will help them to take trading decisions.
Forex indicators work effectively if you collect them from authentic resources after thorough research. Many forex signals resources should be implemented after analysis.
Generally, new users follow the forex signals without knowing that they are not legit and transferred directly by a social media channel.
That’s why they can destroy your trading frame and hence the forex market has to face an economic crash.
● High Attachments
Leverages or attachments are certain amounts of borrowed money that a trader uses to invest in forex trading. Forex brokers give this advantage to their clients. It is a borrowed fund that can increase the chance of possible payback.
It has both positive and negative sides. Generally, in this trading market brokers provide a high ratio of attachments to their clients. It will make the trader happy, but he may not be aware of the cons of these leverages.
It brings heavy loss, accountability, subsidizing accounts, and margin call risk. So, instead of using such big amounts, it is best to trade by your own account.
So, high leverage is an obstacle because of it, the forex market might not last forever.
Frequently Asked Questions (FAQs)
Will the forex market ever shut down?
No, forex trading will never crash. Despite it, this market may face a currency collapse if a global economic collapse.
How long will forex be around?
Forex is the most famous market that will be around forever. If you are getting profit in forex, you may get it in any financial market because forex is the most influenced market.
Now you are fully aware that forex trading will last forever. We have discussed all the possible reasons that this worldwide trading market has never been shut down.
Some factors prove obstacles in the way of the forex market and stop it from last forever and never go away.
There is no magic, no luck in this market, it only depends upon the techniques. A new trader must know about them before he starts trading.
Will the forex market ever shut down?
Nobody can predict the future. May in the coming days the situation may be totally different. Maybe in the future, there came some interesting updates that will make this market more interesting.
We have cleared all-important points above. If you know anything else, don,t forget to share your thoughts with us.