The UK maintains its dominance in the global currency trading business – why are investors choosing forex over stocks?

UK maintains its dominance in the global currency trading business

Despite voting to leave the European Union, the UK has managed to extend its lead in the global currency trading business in 2019.

The forex market in the UK clearly shows its dominance, being the largest, when it comes to trading volume. London, in particular, seems to be the ideal Forex trading venue for investors, and you will notice the number of traders increases regularly. Favourable trading conditions and flexible regulations are two of the most relevant factors that have helped London gain its position in the Forex market.

While stocks still maintain their popularity as well, forex has, however, gained a leaping advantage, especially for millennial investors, becoming one of the most appealing markets for both experienced and inexperienced traders. There are a few powerful factors that underline why choosing to invest in forex instead of stocks can be the best approach. Here’s what you should know on the topic, why forex is taking over stocks in popularity and why the number of traders is on the rise:

The largest and most developed market on an international scale

Let’s start with the most obvious aspect and that is how large the forex market actually is in the UK. Investors who do a bit of research are well aware of how developed forex actually is on a nationwide scale, and this comes as a point of interest for those searching for financial opportunities. Considering the strong position of this market in the country, it’s certainly more convenient to choose forex trades instead of stock transactions.

Ideal trading conditions

If you look into the topic more in-depth, you will quickly learn about the appealing trading conditions the UK forex market is characterized by. You are provided with the most relevant and up-to-date trading products and services, and tailor-made guidelines are made available regularly to new traders trying to get the hang of forex transactions. Besides, obviously, being completely legal, there are no strict trade restrictions to keep up with, which makes things convenient for investors. Fair conditions, support and regulatory flexibility – there are more than enough positive traits to showcase the popularity of forex transactions in the UK.

Variety of regulated brokers and trading platforms

If you know a little something about the world of forex, you are probably aware of the fact that your transactions should be done with a broker on a trading platform. Well, because the broker you resort to can have an influence on how resourceful your wins actually are, it’s important to make a selection wisely. In the UK, you will come across a wide variety of options available, reliable trading institutions and easy-to-understand platforms that you can access at any given time. Investors acknowledge that the range of FCA Forex brokers (regulated in the UK) makes it easier to start out to maintain a profitable approach. Because you can find so many regulated brokers, your transactions can be kept secured as well.

Ease of learning

Stock investments have been around for quite some time, but that doesn’t reduce the complexity of this trading option. Deciding in what industry and assets to invest can be difficult without any previous experience, and the risk of losing money becomes, thus, higher. Well, with forex, managing to understand the concept will imply less effort and time. As long as you’ve mastered the lingo, know the basic steps and have some insights on world economics, you can start placing your trades. The simplicity behind the entire process of trading is certainly an important reason why the number of UK forex traders has increased significantly in recent years, and continues to be on the rise.


A wide percentage of UK forex investors engage in trades as a part-time activity. They simply use this market as a way of adding to their monthly income. The reason why forex traders are able to constantly pursue transactions, while still keeping a full-time job is the market’s availability. Being open 24 hours a day, from Monday to Friday, you have all the schedule flexibility you want. Although some hours might be more advantageous for specific transactions, this is a global market, and trading is possible regardless of hour.


Being so large, the forex market also provides you with significant liquidity. Regardless of hour or day, if you want to make a transaction you have the possibility to do so, and cash out. Exchanging one asset with another won’t be difficult, despite any political or economic fluctuations. You can enter or exit a trading position whenever you think it’s right without further complications. You can’t say the same thing about stocks. There are many more conditions in terms of trade manoeuvrability, which means your money can often get “stuck” and you would have to put a hold on your investments.

The uncertainty of the political environment doesn’t seem to affect the UK trading market

While you might have expected for UK’s currency to fall behind since the country voted to leave the European Union, things haven’t exactly happened that way. The strong position maintained by the UK forex market during times of political environment uncertainty has triggered an interest among investors. Because it seems like any changes in local interest rates don’t imply high risks in the world of forex, it’s understandable why new traders emerge regularly.

As you can clearly see, you have quite a few significant aspects that underline the beneficial nature of forex trades. Stocks might still have their own appeal, but if you want a safer, faster and easier approach to accumulating wealth, forex has the winning position here. Being extensively developed, as a UK trader you can access appealing opportunities. The forex market is simply more liquid, easily accessible than other options. Learning to trade doesn’t require advanced skills, and it can be done part-time, make it even more advantageous. These remain the primary reasons why more UK investors are directing their attention to forex lately.