The world has never been changing as fast as it is transforming today. The rapid economic growth and a significant increase in the quality of life have mainly been driven by the immense technological breakthroughs throughout the past several decades. During this period, almost all industries have changed to their very cores, creating high expectations from consumers on new and already-existing products in terms of innovation.
Digitalization is the prime part of this immense process. Some rather traditional institutions are being adapted to meet the needs of the youngest. Millennials, once the most creative force of our societies is being replaced by Generation Z-ers. This age group unites youngsters born between the mid to late 1990s up until the 2010s. What many people struggle to notice is that these people were born in the era of technology. They never sat in front of the TV waiting for the favorite TV program but rather were able to look it up by themselves on youtube using an iPad or any other kind of gadget.
This at a glance a small change shows us just how much our lifestyle has shifter over roughly a couple of decades. The same has happened in the financial industry as it keeps transforming into a more convenient, accessible, smart, and fast sector thanks to digital technologies. There is barely any successful commercial bank these days that does not offer a web or a mobile platform. From taking a loan to making a simple financial transaction, everything can be done online or using well-streamlined apps.
The trading sector has gone through a similar path as markets in New York and London do not look like what they used to be in the 1980s. There are no more hysterical phone calls in chaotic grand halls. Instead, the vast majority of the well-connected system is automated and fully online. For this very reason, international stock exchange and trading as a sector are more efficient and great today than ever before. Arrangements can be made between parties located in any part of the world in a matter of minutes. These possibilities represent a major boost for the global economy.
Yet, thanks to Forex trading platforms, now everyone can become a part of this global network. Traders from all around the world make profits out of buying or selling currencies. Despite its convenience, being a trader is not a recipe for overnight success. It often takes years to make substantial amounts by this activity. Yet, those who make it often join local or international companies.
Now, the United Kingdom is one of the leading financial markets on earth. With London being the number one global city on earth, the nation is attracting lots of investments and talent from all across the globe. Yet, many well-off traders are fleeing the country to become even the cheapest Forex broker Australia has ever seen. But if the UK economy is doing well and also is home to the global financial center, why are British traders moving to Australian companies?
The Overall Environment for Traders in the United Kingdom
One of the prime reasons why Britain is a leading financial center in the world is its deregulated market. It is one of the easiest places to start a business while lots of financial institutions benefit from different schemes. Thus, no one wonders while London attracts more international banks and their continental or global headquarters than any other city across the globe.
However, as the United Kingdom remains a part of the European Union (EU), leverage rules that were adopted by the organization in 2018 also covered the nation. These new restrictions significantly influence brokers and their activities along with a range of financial institutions. The new rules increased the capital requirements for those who want to trade.
Naturally, this decision had a major impact on British traders who do not want to have substantially bigger expenses over the new regulations. Thus, many of them who had enough flexibility started looking for an alternative elsewhere. Unfortunately, the late regulation covers the entire EU from Portugal to Finland and Cyprus, thus, moving down to the Netherlands is not quite an option. However, some still are choosing to move to another EU nation with lower living costs in an attempt to regain the regulation expanses. For this very reason, some British traders have been moving to Poland, Romania, and the Baltics.
However, due to close cultural proximity and historical affiliations, the vast majority of those moving abroad keep choosing Australia. The country located pretty much on the opposite side of the earth is an attractive destination for traders from Britan and beyond. Australia’s Securities and Investment Commission has introduced its plan regarding the upcoming changes until the year 2020 to make the market more accessible, welcoming, and convenient. For this to happen, the body is taking a number of crucial steps, including forging stronger levels of compliance with Australia’s investment while making sure that complaints are handled properly.
Brexit most Certainly Plays its Part in this
At this point, almost everyone on earth knows what Brexit is. In 2016, the United Kingdom voted to leave the biggest single market on earth – the European Union. Yet, decades of friendship and millions of intra-European migrants along with super complicated legislative difficulties turned out to be quite tricky to handle. After failing to deliver Brexit in time, the former British Prime Minister Theresa May resigned from the position with an utterly sensitive speech. Boris Johnson, one of the most eccentric British politicians and the former mayor of London became the new leader of the Conservative party and managed to deliver an acceptable Brexit deal.
However, throughout this process of tiring negotiations, hundreds of major companies decided to leave the United Kingdom and primarily the capital London amid the uncertainty over Brexit. This naturally pushed many traders and brokers out of Britain along with countless banks and insurance companies. Therefore, Brexit has to take its fair share of the blame for the trend of Britons choosing Australian companies.