A new generation of financial traders and traders in the virtual trading space has emerged in the past year and they are a big part of the growth of forex in the global economy, according to new research from the US-based consulting firm Citi.
Citi, the world’s biggest financial services firm, said it had hired 4,600 new forex traders in 2016, a 40 percent jump from 2015.
It’s also estimated that the industry is worth more than $1 trillion annually, making it the world top $1tn trade in terms of annual revenue, it said in a report.
Citi also said it has invested in more than 5,600 virtual trading platforms, which it estimates will add another $800 billion to its business.
Forex, a digital trading platform that enables traders to trade currencies, commodities and other assets in a variety of formats, has grown rapidly in recent years, said Chris Dickey, the chief executive of Citi Global Asset Management.
Citing a number of factors, such as the proliferation of smart phones and cloud computing, the firm said that by 2020 the number of global traders will more than double from around 1 million to around 3 million.
The growth of the forex industry has also been driven by a surge in trading activity, Citi said.
“We believe this rapid expansion in the foreX market is the most significant contributor to the explosive growth of global forex activity,” Dickey said.
Forex trades have been growing in popularity for several years now.
It is the largest market in which investors can buy, sell and trade cryptocurrencies and other digital assets.
ForeX, which is backed by the likes of JPMorgan, has attracted a number that include billionaire investor Warren Buffett, as well as technology entrepreneur Elon Musk and venture capitalist Peter Thiel.
ForeX trades are often based on a market maker’s estimate of the value of the currency to be traded.
A trader can make money by offering a price for the currency or a bid or ask price for an asset.
A forex trader can also buy and sell currencies on a daily basis, making them one of the most popular and profitable forms of trading.