The Millennials are generally people who were born between the 1980s and 2000. They were born just at the end of the 20th century. And, one of the benefits of being part of the Millennial generation is that they cope admirably well with the Information Age and its associated technology.
The Millennials are also lucky to find most financial markets like foreign exchange markets open to everyone who is interested in increasing their wealth portfolio by investing on one or more of these markets.
In the early days, most financial markets were only traded by large institutions like banks and wealthy individuals. It was not like it is today during the 21st century when trading has been simplified and is made accessible to everybody.
There are also improved financial trading methods compared to what generation ‘x’ had access to. We shall go through some of the improvements that the Millennials enjoy today that weren’t available to the past generation of financial market traders.
The good news is that beginner traders do not need large investments to begin trading. You can start trading on several financial markets especially the Forex, CFDs, and options markets with minimum deposits. You only need to look for a broker that provides a trading account with the least minimum initial deposit that is within the amount you wish to invest.
According to Jones Mutual, margin or CFD traders can be able to place trades which are worth more than they can handle by “borrowing some cash” from the brokerage firm that they are using. Not all brokers allow margin trading. The brokerage firms that allow margin trading are those who give some leverage to traders. Traders with small investment amounts are advised to look for brokers with larger leverages.
Margin trading is actually what has made it possible for traders to open accounts even with small funds.
Another way of trading that the Millennials enjoy today is the ability to automate the trading process. Today, a trader can program his trading strategy to place, monitor and close trades on his/her behalf without the trader being actively involved in the trading process. The programs used in automated trading are referred to as trading experts and are now widely available on the internet although most are paid for. With automated trading, financial market trading has become much easier and less stressful for the Millennials.
Trading using trading signals services
Contrary to the past when it was a must for traders to sit in front of their computer doing technical and fundamental analysis so as to identify the right entry points and exit points for orders, today there are trading signal providers who provide traders with signals of when to enter order and even when to close the orders. Traders can now sign up with trading signals providers either at a fee or for free so that they can receive the trading signals. The trading signals providers do all the work of analysing the markets and the work of the trader is only to interpret the signals and use them to place and exit trades.
Social trading has made it easy for traders to earmark successful traders and replicate how they trade. In social trading, inexperienced traders can copy or mirror trades from professional traders to their trading accounts. This helps the inexperienced trader to make profits and also learn how to trade. With social trading, traders now do not have to be very knowledgeable about financial markets when starting to trade.
Trading using managed accounts
People are getting more and busier in the 21st century and some people who would like to participate in financial trading find it hard to get some time to trade. However, with the managed account services, Millennials can now invest in financial market trading even when they have very tight schedules.
The managed accounts are where the trader deposits his/her funds into a segregated fund managed by a professional trader. The investor will get payouts that may be on a weekly or monthly basis depending on their agreement with the managed account service provider.
With time, more and more managed accounts service providers are coming up. Almost every financial market now has some managed accounts service providers.