Forex Fintech Empowers Retail Investors with Technical Tools Necessary to Profit on Volatile Markets

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The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

The foreign exchange (forex) market is the largest financial market in the world. With a global market value of $2.4 quadrillion, it dwarfs even the $95 trillion global stock market. With 24/7 trading and high liquidity, it’s also one of the most actively traded markets, reaching a daily trading volume of $6.6 trillion in 2019.  

Despite this enormous size, many forex traders fail to generate consistent returns. New fintech companies like HotForex hope to change that by providing retail investors with the advanced tools needed for successful forex trading generally, and more volatile exotics trading specifically.

Volatile Exotic Currencies are an Untapped Market

Exotic currencies, like the South African rand, Kuwaiti dinar or the Omani rial are currencies that trade less often on the forex market. As the U.S. dollar and euro account for the lion’s share of forex trading, exotics collectively represent a large market that many FX traders aren’t utilizing to their full potential. 

The reason FX traders stick to a relatively small handful of currency pairs is that those thinly traded exotics are much more volatile. The increased volatility that makes them higher risk also creates potential for more dramatic gains, though. 

Dominant currencies like the U.S. dollar and euro remain relatively stable, creating little opportunity for significant profits in any given trade — unless you have enough capital to invest to make those smaller price movements more profitable.

For smaller trade sizes, however, one of the best ways to maximize profit potential on any given trade is to look to currencies with a lot more movement in their prices. Those bigger, more frequent swings create regular opportunities for profitable, short-term trades.

Generating a consistent return in these volatile markets requires a rock-solid short-term trading strategy and the ability to react quickly to market changes. For most retail investors, the advanced technical analysis required to do that has traditionally been kept out of their reach as the charting tools and tech that make them possible were largely restricted to institutional investors. 

With the rise of fintech, that landscape is rapidly changing. Brokerage apps like HotForex (HF) Markets are making powerful, advanced features and tools freely available to retail investors.

Democratizing Charting and Technical Analysis

One of the most important components of a successful short-term forex strategy is in-depth technical analysis and the ability to spot tradeable opportunities on charts. While that used to require an advanced degree in finance, automated tools like HF Market’s Autochartist make this kind of analysis much more beginner friendly.

Investors can simply add the currency pairs they’re most interested in trading to a watchlist and let Autochartist monitor charts 24/7, sending investors alerts whenever it spots an opportunity. In addition to volatility analysis and pattern recognition, the free tool also offers a risk calculator. When an investor wants to make a trade, the user-friendly risk calculator will help them decide the right trading volume based on their individual risk tolerance level.

See also: BEST FOREX BROKERS

Mobile Availability

Another key to succeeding in volatile forex markets is the ability to react quickly to fluctuations and trends. In the past, that meant staying glued to a desk, following forex news and watching your active trades like a hawk. For investors with jobs and other obligations, that level of focused attention wasn’t practical. 

Now, with mobile apps like the HF app, investors can monitor trades from their phones, wherever they are. They can also receive alerts, enter and exit trade positions and take advantage of all the analytic tools HF Markets offers on its desktop platform. 

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.