Millennials and Gen-Z a big part of Forex trading trend
Understanding the two generations
Millennials, alternatively known as Generation Y, are largely known as confident and borderline entitled or narcissistic members of society. Aged between 25 and 40, millennials grew up in a world guided by computers and technology. As such, they are heavily dependent on the internet and are generally quite good at multitasking. Generation Z (Gen-Z), aged between 6 and 24, follows closely behind millennials. While millennials witnessed the initial stages of the digital age, the subsequent generation was born into a world governed by technology.
With the above in mind, the role and impact of technology amongst the two generations, relative to previous generations, is quite evident. This has also filtered down to the way in which these two generations view technology, their behaviour in the workplace, and the opportunities they are able to identify and capitalise on in the digital age.
The increasing role of technology in recent years
With information being so readily available and at the fingertips of millennials and Gen-Z, it is no wonder that investment opportunities are not a foreign concept to them. While earlier generations believed in the traditional way of making money, mostly through securing a long-term and stable job, those that had knowledge of investment opportunities tapped into them later than millennials and Gen-Z. Additionally, before the advent of digital media, investing seemed like a concept only for the wealthy and elite who had sufficient disposable income and resources.
One investment opportunity that has undoubtedly gained momentum in recent years, and which the two generations have been privy to, is Forex trading. According to reports, individuals under the age of 34 have become more welcoming of the concept of trading, particularly in 2020. It has also been reported that the conditions of 2020 and the financial turbulence that arose led to an increased risk tolerance amongst the younger traders.
Why the interest in Forex trading is expected to remain
Given the evident interest in Forex trading as an investment opportunity, it is expected that millennials and Gen-Z will continue to explore this phenomenon and look to capitalise on the Forex market. As the Forex market is highly volatile and reactive to global conditions and circumstances, some aspects remain relatively unchanged, such as the fact that it is popular to trade in Euros and Dollars (EUR/USD). The EUR/USD paring is one of the most traded currency pairs in the world, and as experienced traders would tell you, this is because it offers consistently tights spreads and high liquidity.
Of interest and worth noting is the fact that, according to analysts and experts, the outlook on the Australian Dollar (AUD) remains positive, despite the impact of 2020 on the market. The AUD reportedly ended the year that was on a high, which was mostly attributed to its commodity-driven economy that is said to be on an upwards trajectory.
Bearing in mind that one does not need excessively large amounts of money to start trading, yet it presents the opportunity to make considerable returns, it is no wonder that the youth is starting to trade and invest relatively earlier than earlier generations. Moreover, as they are often described as generations of instant gratification, strategic and tactful Forex trading can offer the necessary satisfaction if market activity is in their favour.