Factors Restraining The Popularity Of Foreign Exchange In Many Countries
The past decades have been crucial to the development of the global financial industry. The entire ecosystem has changed from a traditional industry that rarely uses digital technology to a completely network-based industry. With the financial industry claiming to be one of the most digital industries in the world, today’s situation has completely changed. This contributes to the development of many rural areas around the world, while making financial services more accessible and affordable for millions of people.
Considering the digitalization of the financial sector, the first thing I think of is commercial banks. Unlike decades ago, to conduct currency transactions or perform basic financial operations, you must go to bank branches to wait in line, and then participate in the long process with employees. All of this can now be simply wiped off the smartphone, using mobile apps. This has become a new normal and we are used to it. Because we have fully adapted to the new reality, it is also difficult to think about the recent process.
But commercial banks or insurance companies are just the surface of this major change. Foreign exchange trading has benefited greatly from the whole process of rapid digitization. This industry has existed for quite a long time. Now very famous billionaires and philanthropists began to do business through foreign exchange trading. One of them is George Soros, a world-famous entrepreneur, philanthropist and educator. The 89 year old man gained the first part of his wealth of 8 billion dollars in foreign exchange transactions. At present, he is one of the most influential figures in this field, donating more than 32 billion dollars to the Open Foundation in his lifetime.
Foreign exchange in the digital age
Unlike George Soros when he started trading, the foreign exchange market has become easier for anyone willing to invest. The Internet makes the huge foreign exchange trading platform network possible. Therefore, anyone can now trade anywhere in the world. With the rapid growth of global Internet connections, more and more people begin to trade. But the whole industry is not just based on interest margin and luck. To become a successful trader, you need enough knowledge, and the best is experience.
Unfortunately, many people compare foreign exchange trading to gambling. I think it all depends on luck. In fact, luck plays the smallest role in foreign exchange trading. People with relevant knowledge and experience in this field can make a lot of money in trading. But this is not the way to become famous overnight. Although there is a misunderstanding that foreign exchange trading will make people rich overnight, this is not true at all. On the contrary, the success of foreign exchange trading depends on months, sometimes even years of sleepless nights of losses and sustained efforts.
All countries around the world are striving to achieve more foreign exchange business within their jurisdiction. Some cutting-edge countries such as Britain, Denmark and Australia are implementing laws to promote the development of this industry. However, many countries(especially Asia, Africa and the Middle East) are lagging behind.
Fast developing emerging countries are trying to support the foreign exchange industry. One of the best examples is Georgia, at the crossroads of Europe and Asia. In order to attract investors from Georgia and overseas countries, the former Soviet Republic has implemented freedom laws. In addition, Bitbury and other companies have brought some changes to adapt to the encryption industry, and even become one of the largest encryption mining centers in the world. Do you have any designs? Why is foreign exchange not popular in some countries? Or why did some countries not even legalize it?
Misunderstanding – the relationship between foreign exchange industry and gambling
The biggest stumbling block to foreign exchange popularity is that many countries have misleading links with gambling. Many people believe that foreign exchange trading is luck. Once you enter, there is no way out. It sounds interesting to people in the foreign trade. However, this problem is still serious. The industry should take more measures to properly handle these allegations and misunderstandings and eliminate them. Otherwise, trust and the overall image of the world’s public will remain vague and gloomy.
In short, as an industry, foreign exchange has a poor reputation in many countries. Because most people who try to trade lose money from the beginning. As mentioned in the article, it is good to lose money in the first stage. Foreign exchange trading requires a lot of technical knowledge, which is accumulated through experience. Reading textbooks about foreign exchange will not make you a class a trader.
The fact that people “quote” and “lose money” makes the foreign exchange industry look like a huge casino hall, where rich people go to play. In fact, this is obviously not true. In countries that are extremely conservative about casinos, foreign exchange is particularly taboo.
Strict legal framework
One of the most important factors in forming a friendly foreign exchange environment is the country’s legal framework on this matter. For example, the UK has an independent regulatory framework that supports companies working in the market. But this is not the case in all countries.
Even today, some countries completely prohibit foreign exchange transactions. In Iran, for example, a person may be imprisoned for attempting to trade with currency. The situation is similar in most regions of the Middle East and some countries in Southeast Asia. Of course, in an environment where trading is prohibited, the popularity of foreign exchange is questionable.
