Forex trading – the act of buying and selling global currencies – is thought to date back as far as the Babylonian period, some 4,000 years ago. From its humble barter-based beginnings, the forex market has grown to become one of the biggest and most liquid of all financial markets, with a daily trading volume of $6.6bn. The dawn of the digital age has made forex trading more accessible than ever before. In the pre-Internet era, trading was something of an exclusive and limited club, where social connections and deep pockets were prerequisites to investing. Now, an internet connection is all that is needed to start trading. In just a few short clicks, traders can check real-time currency rates and view how their investments are performing. Online brokers have helped to further open the world of trading to a wider community, by providing user-friendly platforms on which to trade, along with educational content and trading tips for beginners and experts alike.
With such a wealth of information at new traders’ fingertips, investing is becoming more democratic and more diverse. But as Artificial Intelligence (AI) and algorithmic trading begin to rapidly reshape this fast-paced and changeable market, finding a path to profit has never been so complex. In these turbulent times, the right brokerage firm can make all the difference to a trader’s investment journey.
Seizing new opportunities
The forex market is experiencing a period of considerable change. Advances in AI technologies are transforming the industry as we know it, while a post-pandemic influx of novice traders has seen the market become an ever more competitive place for established brokers. Increasingly, brokerage firms are looking to set themselves apart from other players in the online trading space, offering enhanced, mobile-friendly trading platforms, expert educational resources and attractive partnership programmes.
“FBS has been in the market since 2009, and we have witnessed many trends over these past 15 years,” Diego Lima, Partnership Managers Team Lead at FBS, told World Finance. “Brokers should provide a sense of confidence on every step – and that is particularly important in the current climate.”
For more experienced traders, some of the most valuable advice a broker can share is on new ways to potentially increase their profits – and some of these opportunities don’t even involve trading, at all. In recent years, Introducing Broker (IB) programmes have become a popular way for traders to generate additional income. In an IB programme, an individual acts as an intermediary – an ‘IB’ – between a broker and other traders, introducing potential clients to the brokerage firm in exchange for a commission.
This kind of collaborative venture can prove lucrative for clients looking to boost their income stream, as it allows traders to earn money outside of their direct investments. The client, or ‘IB,’ promotes their broker’s services to potential new traders, and once the secondary client signs up with the broker, the IB receives a commission on the trades that they make from that point onward.
“The FBS IB programme presents a compelling opportunity for individuals looking to earn money in the forex market without actively trading,” Lima explained. “With its competitive commission rates, comprehensive support tools and commitment to partner success, FBS stands out as a premier choice for those seeking to capitalise on the lucrative world of forex IB partnerships.”
A learning curve
While Introducing Broker programmes may be best suited to more experienced traders, leading broker FBS also boasts an impressive offer for novice investors. Forex is a competitive and periodically volatile market, and new entrants can sometimes find that their self-taught knowledge only takes them so far. For those who are just starting out on their trading journey, expert advice and educational training can prove invaluable.
This is particularly pertinent given the rapid rise of ‘finfluencers’ and other forms of alternative financial advice that circulate on social media. While there is a wealth of information to be found online, it can be difficult to know which resources are truly trustworthy. In fact, a recent report carried out by stock research platform WallStreetZen found that over 60 percent of TikTok videos using the hashtag #StockTok contain inaccurate or misleading information. In this climate of widespread misinformation, advice from experienced financial professionals can make all the difference to those new to online trading.
AI can be a powerful tool for traders looking to stay competitive in a fast-moving market
“We offer a variety of educational resources on different online platforms to empower our traders,” Lima explains. “Beginners can make use of our forex guidebook, which offers a crash course in trading essentials. We also continually refresh our website with the latest market analytics and websites, and we host a series of educational webinars on our YouTube channel, with insights from real, experienced traders.”
Access to clear and comprehensive information can help new and inexperienced traders to make more informed, profitable decisions when it comes to buying and selling. But even when armed with practical advice, new traders can still struggle to enter and navigate fast-paced financial markets. That is where demo accounts can help – by providing a safe space for novice traders to hone their skills.
When using a demo account, traders use virtual capital rather than their own, real money. This gives new clients a risk-free opportunity to refine their trading skills and strategies, and gain confidence in their ability.
“Demo accounts are connected to a live trading platform, and use real-time market data,” explained Lima. “By using a demo account, traders can dive into trading and test their knowledge without risking real money. Then, once traders are familiar with the basics and feel confident enough to place an order, they can easily switch from a demo account to a standard account on our app or through our website.”
Seasoned traders, too, can benefit from exploring new options and strategies on a demo account. Continuous learning is key to success in any industry, and trading is certainly no different. In particular, establishing stop-loss and take-profit levels can prove challenging to new and experienced traders alike, with individuals often unsure on where to place their limits. Demo accounts allow traders to explore the levels that may work best for them, and to refine their risk management approach.
By taking the time to self-assess, reflect and strategise using a demo account, traders of all ability levels can boost their skills, and consequently, their likelihood of succeeding when live trading.
A fast-changing market
The forex market is a dynamic, ever-changing landscape. It has undergone many transformations in the digital age, but perhaps none so profound as the AI-powered evolution that it is experiencing today. When used skillfully, AI can be a powerful tool for traders looking to stay competitive in a fast-moving market. But it also poses its own unique challenges for traders, brokers and regulators alike, with experienced professionals rushing to keep pace with the changes happening in the industry.
Machine learning, a subset of AI, uses algorithms to analyse extensive amounts of data. In a matter of seconds, machine learning algorithms can assess vast quantities of financial information, identify opportunities and even autonomously carry out buy and sell orders. Elsewhere, so-called AI ‘trading bots’ can be programmed to manage every aspect of trading – giving traders the option to let AI make investment decisions on their behalf, if they so wish.
“In the years since FBS has been in the forex market, one of the most profound changes we have witnessed has been the steady increase in instant transaction solutions like trading bots,” said Lima. “Nowadays, around 90 percent of forex interactions are being performed without any human interaction at all.”
There are some inevitable limits to trading bots. It goes without saying that they can’t get every investment decision right, and they also require regular updates and adjustments in order to run smoothly and successfully. There is also the risk that a bot has been trained on flawed or low-quality datasets, resulting in poor predictions. Some users may also feel wary of handing over their investment divisions to an automated bot, especially when there may be significant sums of money on the line. While these are all reasonable concerns, such apprehension will ultimately do little to slow the growing dominance of AI in the world of trading. Amid such far-reaching changes, trust between traders and brokers has never been quite so important. In uncertain and unpredictable times, quality customer service can reassure traders and empower them to make the right decisions for their unique financial goals. With more than 27 million active traders, FBS has emerged as one of the market’s most trusted brokers, offering well-established client support that is available around the clock. “Traders can expect a reply in less than a minute after sending their request or schedule a call-back,” explained Lima. “The comfort and satisfaction of our traders is our priority.”
The next few years will undoubtedly bring further changes to the forex market, as developments in AI and algorithmic trading continue to transform the way that we buy, trade and strategise. Brokers and traders will need to evolve with the times, and for those that do, the rewards may well be significant.
