Internet swells forex traders' ranks
Interest in the currency market continues to grow as private traders find easy access to an extensive range of information and take advantage of the ability to trade any time and anywhere through the internet.
Ornit Niv, managing director of FXCM Asia, said access to a wealth of online information, stricter regulations leading to increased transparency, and technology driven devices had led to more investors participating in foreign exchange trading.
'There are more than 100 websites offering free charts, analysis and other forex information,' Ms Niv said, adding that such sites were charging a premium for the same kind of data just a few years ago.
She said aggressive marketing from brokerages, low interest returns associated with many traditional investment products, industry focused seminars and an increase in the number of exchange trading companies opening in Hong Kong had added to increased awareness of the forex investment option.
Traditionally, access was controlled by gatekeepers - merchants, bankers and industrialists who wanted the profits for themselves.
In the past 10 years, however, that has changed. Technology allows anyone with an internet connection, via a terminal or mobile phone, to trade in currencies and gain access to the information that gives traders a more level playing field.
But Ms Niv said forex trading should still be considered risky even though it was growing in popularity throughout Asia as the means to trade currencies became easier and simpler. She said the world was trading goods and services at an ever-faster pace, spurred by advances in communications technology and infrastructure over the past decade.
Along with globalisation, forex had become a critical market. And for the new breed of global traders and investors, the opportunities in forex were just beginning.
As a company that specialises in providing foreign exchange services to private clients over the internet, FXCM has developed online and classroom tuition tools to help clients become better traders.
Its FX Power Course, an education product developed by the company in English and translated into Chinese, is designed to teach the basics of forex trading. Clients learn how to read charts, use reports written by professional analysts and make use of financial news bulletins.
'As a market maker, we are catering to the requirements of self-trading clients who want to make their own decisions on how to trade,' Ms Niv said. Clients who take the course would learn how to develop a trading strategy and the fundamentals that traders need to know to avoid relying on the services of a broker.
She said new components and resources were being added to the course. 'The course is based on what we have discovered Asian clients already know and the things they want to know,' Ms Niv said.
In another bid to help self-trading clients, FXCM has formed a joint venture with Thompson Financial to translate Thompson's English real-time market information into traditional Chinese and simplified characters. The service allows clients to log on to real-time information that was originally developed for the professional forex trader.
Ms Niv said Thomson Financial's proprietary content and market expertise was being used to create a comprehensive service focused on real-time market, industry and company news.
Depending on the trader's trading status, users can decide to check every 10 minutes, daily or once a week. 'We are providing clients with news that they can understand in a fast format, without having to worry about a language barrier,' Ms Niv said.
Those who are not trading spot forex directly could still find the information useful.
'Anyone who has exposure to the forex market - and many people in Hong Kong usually do through owning property in different countries or involvement in selling products overseas - can benefit from the up-to-the-minute information,' Ms Niv said.
