Will Social Media be the Next Key Player in Forex Market 2024?
Learn and review how social media will be the next key player in the forex market, and explore the best networks for this investment
Until around the late 1990s, when online trading exploded, trading financial instruments was a thing that was only understood within the walls of large financial institutions. The last 25 years have witnessed many changes and developments in trading financial instruments online. Learn and review how social media will be the next key player in the forex market, and explore the best networks for this investment.
Most of these changes are about the use of the internet. Social media is one of the significant internet factors of change in the nature and practice of online trading, especially foreign currency trading (Forex).
Forex Market & Social Media
Whether social media is a key player in online Forex trading is a hot debate in 2024. Before we delve into finding out why the use of social media in online trading has attracted so much interest. Let’s first define online trading and put Forex into context.
What is online trading?
Online trading is the practice of conducting the sale and purchase of financial instruments over the internet. Instruments traded online include:
- Equity investments (e.g., shares)
- Fixed-income instruments such as bonds
- Commodities like gold
Currencies trade on the Forex market, the largest and most liquid of all financial markets. Daily turnover in the Forex market is more than
$5 trillion. In addition, Forex proves to be the deepest financial market. Due to the large numbers of currencies traded and of individuals involved.
Why has the popularity of Forex grown terrifically in the last two decades following the introduction of online trading? As noted earlier, online trading exploded towards and after the year 2000. About this time, some of the internet-based social platforms have the world.
By the storm were being on the horizon. For instance, LinkedIn was present in 2003, Facebook in 2004, and Twitter in 2006.
Social media have a significant influence on the way online trading. Today, there is evidence to conclude that it might be one of the critical drivers of Forex. We explore three significant pieces of this evidence below. Learn and review how social media will be the next key player in the forex market, and explore the best networks for this investment.
1. The rise of online social trading networks: Social media for forex market
Online social trading networks form a significant subcategory of online social networks. There are hundreds of these platforms where millions of users share and get Forex trading ideas.
Typical users fall into two groups: traders and followers. Joining such networks is usually free, and the platform allows you to trade all currencies in the world from any location using your PC or smartphone.
Unlike traditional online trading platforms, social trading platforms did not have user-to-user interactions. The platforms allow traders to set up profiles that can disclose not only their identity but also their trading history, current holdings, trading strategies, and past portfolio performance.
Each trader has followers – investors following the trader’s strategy.
Communication between traders and followers or among followers of a particular trading strategy is done through comments on forums or personal messages.
As a follower, you are always looking for a clear investment idea used by a trader so that you can replicate the trader’s investment decisions in your account. Your actual trading account may be located on the social trading platform or linked to a third-party brokerage.
2. Customers as financial advisers: Social media for the forex market
Peer-based advice transmitted via social media has become one of the most common sources of information for investment decision-making for many online traders.
Social trading platforms and other social media networks are constantly updated with Forex trading articles. These articles usually contain the analyses and predictions of currency movements made by investors who write them.
The result is a social media effect on the volumes of currencies traded and their short-term future values. As an online Forex trader, you want to stay updated on which currencies are mainly discussed online.
The sentiments, views, and advice about trading them eventually reflect the currencies’ prices. In other words, evaluating traders’ feelings can help you predict their price movements. Understand how social media can be the next key player in the forex market, and explore the best networks for this investment.
3. Social media brought the era of DIY (do-it-yourself) financial analysis
One of the reasons that made online Forex trading exclusive for financial institutions in the 90s was that only finance pros could get their head around the financial instruments and trading tools. Social media is probably the most significant contributor to the demystification of Forex.
Today, you can analyze the currencies you want to trade using the vast information availed on social media platforms by fellow online traders.
Proponents of peer-based online trading advice say that DIY financial analysis helps to cut the cost of investing. Unlike before the advent of online Forex trading,
where you’d have to pay some fee to a brokerage for research and investment advice, you can now do your research and use it to make investment decisions. This enables you to realize a maximum return from investing in currency trading.
Social media expect to gain more influence over online trading in 2024 and beyond. If you want to make the most of the opportunity to make money through Forex, using social media platforms can help you reach your goal.
Registering for membership in a social trading platform can help you learn about Forex and build a successful online trading career from the ground. Learn and review how social media will be the next key player in the forex market, and explore the best networks for this investment.
Best Social Media Networks For Forex Market Makers
1 – LinkedIn
LinkedIn is a professional network that is primarily intended for professionals. It may be of greatest benefit if you want to attract business professionals as clients.
You can publish videos, posts, and trading analysis blogs on LinkedIn, which will promote your brand and increase your visibility to potential clients. However, you are not obligated to do so.
The location is ideal if you don’t intend to share much with others. If you want to legitimize your company without undertaking additional effort, LinkedIn is the way to go.
2 – Facebook
Facebook is the most popular social media platform in the entire world. You can utilize it to attract any client, regardless of their niche. If you want to use Facebook ads to reach your audience, you must have a profile with information about your business and regular, valuable posts.
You can announce new information about your company or employees, announce your participation in events, or write blog posts. The data you post on this website should be informative, but it can also be primarily intended as advertising.
3 – Twitter
Facebook’s popularity is similar to that of Twitter, which has a diverse client base that allows you to target any demographic of forex clients.
Twitter’s posts are brief; as a result, frequently posting on this platform doesn’t take much effort. It’s simple to utilize and easy to find hashtags your intended audience would enjoy. As a result, interaction with others is simple.
If you want to interact with clients and leads on a social media platform while also sharing promotional content, Twitter is the platform you should focus on.
4 – TradingView
TradingView allows you to share your thoughts regarding what the market will ultimately do, along with the charts that support those thoughts. Traders can observe your accounts and keep which of your concepts worked.
TradingView also has a web-based platform that allows direct trading, along with a list of authorized brokers. A broker can be added to this list (this is typically for a fee).
TradingView also streams data about the trading of stocks and other commodities outside of currency trading. If you’re interested in forex and CFDs, Myfxbook or FXstat may be more appropriate. If your brokerage offers multiple asset classes, TradingView is a popular platform that has a large audience.