As the world adjusts to the reality of COVID-19, billions of people are focusing not only on the immediate public health implications but also on the economic fallout. With “non-essential” bricks-and-mortar stores shuttered and only outlets such as food shops and pharmacies operating as normal, the impact of the coronavirus is likely to be felt for many years to come.
Millions of people are feeling the pinch. As restrictions have become more severe, many companies are being forced to furlough large numbers of staff, with majority at their own expense. Workers who are eligible for income support will typically receive only around 80% of their regular wages. And those who are fortunate enough to keep their jobs, meanwhile, are also experiencing pay cuts ranging from 10% to 50%. From Premier League footballers and CEOs to public sector workers, the challenge for many is to supplement their incomes in order to provide for their families.
How did COVID-19 affect the Financial Trading Industry?
By analyzing previous economic crisis, lessons can be learned about the behavior of the markets during protracted downturns. However, the similarities between the recessions and depressions of the past and the current situation are limited. There is no way of knowing how long the crisis will last, whether more virulent coronavirus strains will emerge, and whether food supply disruption and even armed conflict could come to pass.
With many governments imposing near-total lockdowns to control the spread of COVID-19, online businesses in general — and brokers in particular — have become increasingly important in terms of keeping national economies afloat. And with the prices of stocks, oil, and gold experiencing massive fluctuations on a near-daily basis, uncertainty has never been greater, presenting both risks and potential rewards. That’s why interest in the relationship between the coronavirus and forex trading has intensified.
The Nexus Between the Coronavirus and Forex Trading
Just as COVID-19 has given the world a crash course in epidemiology, millions have developed a newfound awareness of economics. As they search for alternative sources of income, the dynamic between the coronavirus and forex trading naturally interests them. This rapidly growing demand creates a huge challenge for both brokerages and technology providers. The recent woes of Robinhood are a cautionary tale. Companies that cannot handle exponentially increased volume are likely to miss out on near-term opportunities and could see their brands suffer irreparable long-term damage.
How Can Brokers Rise to the Challenge?
Brokerage companies around the world have experienced increased volumes due to high volatility in the markets. In order to cope with rising demand, attract and retain new-coming clients, brokers should seek out integrated solutions that combine intuitive CRM system, fully configurable IB/Affiliate management and automation tools with abuse prevention designed to boost acquisition during a time of intense competition.
With this increased volatility and uncertainty in the financial markets, all intent is to handle the challenges and opportunities presented while leveraging the Coronavirus and Forex Trading. Above all, it is crucial to manage risks effectively through a mature and proven risk tool that will enable brokers to provide precious market access to the largest possible number of customers.
To stay in control and safeguard your returns, PLUGIT offers a variety of robust and reliable tools and solutions to give you all the support you need. Get in touch with us to get started.