24 Trading Facts Every Broker Needs to Know in 2024

April is already upon us so listen up, brokers, because we’re diving into the top trading trends you need to know in 2024! Stick around and we will go over the top tradeable events of the coming week for you.

The Big Spenders: What’s Hot (and What’s Not) in Traded Assets

1. The King Still Reigns: Forex remains the undisputed champion, with a daily trading volume exceeding $6 trillion. It even hit $7.5 trillion in 2022. That’s enough cash to buy every single island in the Bahamas (and maybe a few yachts for good measure).
2. What’s hot: over 80% of all forex trades include 7 major currency pairs — USD, EUR, JPY, GBP, AUD, CAD, and CHF.
3. The elite trading club: There are around 14.5 million forex traders in the world and 5.9 million of them (41%) are active day traders — that’s your total addressable market right there!
4. Rise of the machines: Algorithmic trading continues its relentless march, with estimates suggesting it accounts for over 70% of forex transactions. Time to brush up on your coding skills, brokers!
5. The Crypto conundrum: The crypto market remains a rollercoaster ride. While Bitcoin still attracts a loyal following, some investors are looking outside the box towards altcoins and DeFi (Decentralised Finance) projects.
6. Commodity chaos: Geopolitical tensions and supply chain disruptions are making commodities like oil and gold more volatile than ever and volatility always brings trading volume.
7. The Green Rush: Sustainability is a growing concern, and the rise of ESG (Environmental, Social, and Governance) investing means assets tied to clean energy and green initiatives, like Vanguard ESG, are gaining traction.

Trade While the Iron’s Hot: Popular Months and Days

1. January Jitters: The new year often brings a surge in trading activity as investors look to deploy capital and make resolutions stick (hopefully, not ones involving reckless margin calls).
2. FOMC Frenzy: Meetings of the Federal Open Market Committee (FOMC), which sets US interest rates, can trigger significant market movements. Be prepared for some pre-meeting anticipation and post-decision volatility.
3. Monday Blues Booms: While some might believe Mondays mean a sluggish start, forex markets often see a spike in activity at the beginning of the week.
4. Beware the Friday Freefall: Some argue that Fridays tend to be quieter, with traders hesitant to hold positions over the weekend. This can present opportunities for savvy brokers who know how to navigate potentially lower liquidity.

Location, Location, Location: Where the Trading Action Is

1. London Calling: Despite the negative impact of Brexit, London is still the largest hub in the world for foreign exchange currency trading.
2. The Land of the Rising Sun: Japan is also a major forex player, with its strong economy and active retail investor base.
3. European Powerhouse: Europe remains a dominant force, with Germany and France boasting significant forex markets. According to Tradingpedia, transactions executed by German traders account for nearly 20% of all Forex transactions.
4. The American Advantage: The US dollar (USD) is still the world’s reserve currency, and the US is the largest and most liquid financial market in the world.
5. Emerging Markets on the Rise: Countries like China, India, and Brazil are seeing an increase in forex trading activity, reflecting their growing economic clout.

Demystifying the Millennial Trader: Age, Demographics, and the Rise of Social Media

Youthful Exuberance: Millennials (born roughly between 1981 and 1996) are now a major force in the trading world and account for as much as 40% in some regions. They’re tech-savvy, risk-tolerant, and drawn to innovative investment opportunities. You’ll want to grab these guys and not let go!

1. Despite that, globally speaking, Forex traders over 40 years old still account for as much as 58% of the market.
2. The Rise of the She-conomy: Women are increasingly participating in the financial markets, with research suggesting a growing number of female forex traders. However, women still only amount to around 8% of all market participants.
3. The Power of Platforms: Trading platforms with user-friendly interfaces and mobile apps are becoming increasingly popular, especially with younger demographics.
4. #ForexLife and Beyond: Social media is awash with forex influencers, offering tips, strategies, and (sometimes questionable) advice. Flashy Instagram posts don’t guarantee trading success!
5. Hashtag Hustle: Popular forex hashtags like #forexsignals, #tradinglifestyle, and #currencytrading can help brokers connect with potential clients. But be sure to offer genuine value, not just empty hype.

The Future of Forex: Adapting to Changing Trends

1. The Rise of Fintech: Financial technology is revolutionising the forex market, with tools like artificial intelligence and blockchain offering new ways to analyse data and execute trades.
2. Cybersecurity Concerns: As the online presence of forex trading grows, so do cybersecurity threats. Investing in robust security measures is paramount if you want to attract and retain a dedicated user base.

Your turn!

Did we miss anything? Do you have some top tips for us? We’re waiting for you over on X at @_contentworks.

Top fundamental events week commencing 01/04/24

Here’s what’s coming up this week. We hope you’re not busy on Thursday.

Monday

● JPY — Tankan Large Manufacturers Index

● CNY — Chinese Caixin Manufacturing PMI

● USD — ISM Manufacturing PMI

Tuesday

● AUD — RBA Meeting Minutes

● EUR — German Inflation Rate YoY Prel

● USD — JOLTs Job Openings

Wednesday

● EUR — Inflation Rate YoY Flash

● USD — ADP National Employment Report; ISM Services PMI

Thursday

● CAD — Balance of Trade

Friday

● AUD — Balance of Trade

● CAD — Unemployment Rate; Ivey PMI s.a

● USD — Average Hourly Earnings MoM; Unemployment Rate; Nonfarm Payrolls;

Here at Contentworks we closely follow market movements and prep content that we think your traders would love to read. Let’s get you started right here.

Speak soon!

The Contentworks team