Saturday, January 11, 2020

Significant Changes for Forex Trading in 2020

2020 happens to be a "special" year setting the tone for the rest of the decade. Thus, Forex traders and investors should keep abreast of all political, economic, and technological developments. With minor changes in policies, there is a possibility to restructure the Forex trading environment. Here are three major areas that should catch Forex traders' attention by the end of 2020.


If traders or investors want to thrive during times of political instability, then it is imperative that they maintain all developments that could influence the value of the world's main currencies. This involves the trade connections between the United States and China, where protracted disagreements over price rates could affect the growth of the US dollar.

The United Kingdom is at a similarly considerable juncture in its trading connections with the EU, with failure to protect a trade deal tend to limit the upward mobility of the GBP. Monitoring market shifts daily determines long-term strategies, while applying accessible trading resources will help forex traders to manage the market uncertainty in 2020. That fact is important to address the market shifts caused by the COVID-19 pandemic. While trade disputes have stable conclusions that boil down to "deal or no deal", the COVID-19 pandemic is harder for investors to manage. It is also hardly possible to predict the long-lasting effect of the virus on national economies and currencies, so forex traders will have to respond to the most recent developments.


Cryptocurrency trading has become well-regulated, so forex brokers (Tradersway, FxPro, FxOpen, eToro, Admiral Markets,, and so on) aim to diversify their services to include cryptocurrency trading options. While cryptocurrency trading functions in a similar manner to forex trading, market operations are usually harder to anticipate.

While changes in the value of a currency are caused by political and economic processes, fluctuations in cryptocurrencies are also related to trends in the world of IT. These trends tend to be harder to understand for traders and investors. There are years of data on foreign exchange markets, but cryptocurrency's relative newness determines the markets’ constant changes.

It’s worth mentioning that the modern Forex trading market is operating 24/7. Paired currencies are traded based on the fixed price in three steps throughout the day. It allows traders and investors in different parts of the world to trade in all existing time zones.

Luckily, you no longer have to visit a money changer to become a Forex trader. In fact, with the right set of instruments, you will easily do it without leaving the comfort of your own home. Thanks to the right hardware and internet connection, you will maximize your chances of success. Equally significant is the mobile application that provides services ranging from comprehensive market analysis to the actual trades.

Also, there are some new technologies to be introduced in 2020 to ensure that cryptocurrency markets offer a more mature and realistic trading routine. This will involve the development of further trading pairs that match cryptocurrencies with more predictable fiat currencies. At the same time, grounding these digital coins will be in a more relatable context.


Brent crude oil prices can have a great influence on the world’s economy so that many nations are reliant on oil as an imported energy source. As soon as oil prices increase, it can drive currencies like the USD down in value. The forex traders should maintain all the policy decisions determined by the Organization of Petroleum Exporting Countries (OPEC).

The COVID-19 pandemic will have a long-term effect on the oil trade. Even when production starts to rebound after the destruction of the virus, the oil sector will be improving from the declining revenues. The economic decline following the COVID-19 pandemic will minimize the demand for oil, which could therefore send prices fluctuating for a long period of time.

The Bottom Line

As you can see, the major change coming to Forex in 2020 is the intensive encouragement to trade. To follow the tendency, you should try out your strategies on micro-lots and make trading decisions carefully. This is why it is especially important for forex traders to monitor all the political, technological, and economic processes across the world.

While 2020 may be a challenging year, traders have more instruments at their disposal than ever before. With 24/7 trading platforms and the increased connectivity enabled by 5G networks, Forex traders and investors will be able to respond quickly and effectively to news breaking from different parts of the world. Use all this knowledge to your advantage to make 2020 a profitable year!