Foreign exchange (FX) or forex trading is now in the spotlight as more and more new entrants benefit from time spent at home investing via online credit instruments in the COVID-19 era and the global FX market is expected to grow by 7.5% during 2021-2026.

Urbanisation and digitalisation drive market growth
The recently released Foreign Exchange Market: Global Industry Trends report analyses the competitive market environment - reviewing some of the UK's leading foreign exchange companies such as Barclays, BNP Paribas, Citibank, Deutsche Bank, Goldman Sachs, HSBC Holdings plc, JPMorgan. Chase & Co. and Royal Bank of Scotland believe that increasing urbanisation and digitalisation in both emerging and developed economies are some of the key factors driving market growth.

Despite, or perhaps even because of, the uncertainties associated with COVID-19, the availability of electronic platforms and the provision of improved security mechanisms for trade also contribute to market growth.

Various online platforms like Exness Forex, many of which use a forex robot, are available to users to easily exchange currencies between countries while ensuring that goods and services are delivered in a secure and centralised environment.

In addition, various technological advances, such as the direct forward and currency option capabilities, are creating positive prospects for market growth. A direct forward allows the trader to fix the current exchange rate, which additionally protects the investor, exporter or importer from future rate fluctuations.

On the other hand, a currency option refers to a contractual document that establishes an obligation to buy or sell a currency at a specific rate. FX also finds extensive transfer applications to support the exchange of various goods and services between countries.

Trade is up 33% in 2020
The key features of FX, such as minimal trading costs, 24×7 trading capabilities, high transaction transparency and liquidity, have contributed to its widespread adoption worldwide.

Trading Authority, a private financial services research firm based in London, names Skilling, eToro and Plus500 as among the UK market leaders, unveiling a new generation of platforms that are native to the digital space and have earned popularity among young people. users who are attracted by the convenience, interactive user interface, social media support and wide range of sophisticated digital products on offer.

 The report also notes that commerce has grown by 33%, with the number of active users reaching 550,000 in 2020. So-called meme stocks and cryptocurrencies such as GME and Dogecoin have also boosted interest.