An introduction to trading
Trading assets on the global financial markets is a method that could reap rewards and help you grow your savings faster than standard interest rates. However, there is always the risk of sustaining losses by putting money into these fast-paced and changeable environments.
Businesses operating within the European Union – and, indeed, the region’s currency – are some of the strongest and most stable options on the markets, ideal for trading beginners. Discover what makes the EU such a unique and attractive trading landscape.
The EU’s unique trading landscape
Economic growth
Since its inception in January 1993, the European single market has been an economic powerhouse. Allowing for the free movement of goods, services and capital between the continent’s qualifying nations has stimulated growth and enabled the region to compete globally with larger nations. It also helps to keep prices low – and therefore potential profits high.
Package deal
Traders get a ‘package deal’ when putting money into the European financial market. Acting as one entity, the region has greater stability than standalone countries, so companies operating within the single market can be low-risk high-reward options.
However, this collaborative approach also means that countries can be compromised by the economic health of others within the union. However, protective measures are in place: for example, spiralling countries can be frozen out of the bond markets.
Sound regulation
Take advantage of the safeguards in place for traders in the EU. Firstly, all brokers and online trading platforms such as Tradu which offer real-time market insights and portfolio access must be licenced to operate within the EU, ensuring transparency of deals and sound safeguards for traders.
Furthermore, the European Securities and Markets Authority (ESMA) works with the European Commission (EC) to supervise the single market and protect the interests of traders. All businesses entering the market are vetted beforehand and must adhere to each nation’s regulations when trading within that country.
Significant currency
Despite being relatively new with around 25 years in physical circulation, the EU’s currency – the Euro – is one of the most significant in the world. It ranks among the top 10 strongest currencies internationally, ahead of the US Dollar, and EUR/USD is considered the most tradable currency pair on the Foreign Exchange Market.
A strong currency, greater predictability and reduced volatility make businesses operating within the European Union an attractive option for traders across the world. Just bear in mind that the EU is not protected from the consequences of unforeseeable events and dramatic market crashes can still happen, evidenced by the economic impact of Russia’s recent invasion of Ukraine which caused inflation to soar across the continent.
