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Is Ethical Investing Compatible With Online FX Trading?

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Forex trading platforms are software conduits that connect investors and brokers online, giving access to the masses, the largest financial market in the world.

When Blue and Green Tomorrow was first founded, we had a clear and simple mission. We wanted to promote sustainable living and ethical investing. Those topics have become far more complex in the past decade.

We have published a lot of articles on the benefits of ethical investing, which include purchasing equities and bonds in companies with a track record for green business and sustainability. However, there are other types of investments, which are seldom thought of in the perspective of green living.

Can eco-investors invest in the forex market without compromising their principles? The simple answer is yes. However, they need to do it wisely.

How Forex Trading Can Support Your Green Investing Portfolio

If you are investing in the foreign currency market, then you want to make sure that your investment decisions don’t contradict your objectives as a green investor. The good news is that there are a couple of ways that it can be compatible:

  • You can invest more heavily in currencies of countries that are adapting sustainable policies
  • You can use your profits to finance other sustainable investments
  • You can choose forex trading platforms that are known for sustainable operating practices, such as using the most energy efficient servers

This can be a great way to help boost your portfolio without contradicting your aim to promote sustainability. You want to short currencies of countries like Saudi Arabia or Venezuala, which focus on oil production.

What Green Investors Need to Know About Forex

The forex trading market is the world’s largest financial market commanding $5 trillion in volumes per day. It runs 24  hours of the day, 5 working days of the week on various forex trading platforms and has no centralized trading location.

World governments, multinationals, banks, traders and investors partake of the foreign currency exchange market by speculating and exchanging various currency pairs for profit. Currency trading is an age-old trade whose backbone is money and its acceptable quality as a medium of exchange worldwide.

The growth of various currencies has further fueled the growth of the currency exchange market because of the need to trade internationally. Thriving on the abundance of free market forces due to the removal of capital flow restrictions by governments, it is now known as the purest form of trading, unmanipulatable by even the strongest of market forces.

The emergence of forex trading platforms

Before the advent of forex trading platforms, trading in commodities was carried out on a trading pit through an open outcry system of training. Nuanced with comic relief, the public outcry method had traders dressed in strange jackets, gathered around a trading pit and yelling at the top of their voices during trades. Thanks to computer nerds and savvy business minds today anyone can trade in FX through forex trading platforms accessible online and most of them are free!

What are FX trading platforms?
A trading platform is a software conduit through which you can open, close and run other forex trading activities with the assistance of your broker. An online trading platform ensures that trades can be executed from any location in the world, any time of day.

Your broker will also supply you with resources and tools through the platform to assist in decision making while speculating on a potential currency trade.  Platforms are designed to run on web-based applications as well as OS or Windows platforms. Today there are various Android and OS trading platform apps too that have made trading in foreign currency as mobile as possible.

The benefits of FX trading platforms

  • They offer direct access to the financial markets
    With a good trading platform, you can in real time access your bid and offer prices without the need to call a broker to discuss your trading volumes.
  • They have made FX trading affordable Eliminating the need of all middlemen as well as travel and communication costs, trading platforms have rendered online currency trading very affordable because they are no fees to cater to. This, in essence, maximizes profits on capital.
  • They have enabled real-time access to trading data The best FX trades are hinged on up to date data to avoid out of date prices. With an excellent online trading platform, there is access to trading information charts and graphs in real time to help you acquire real-time trade insight.
  • They enable fast transactions
    To trade in FX all you need to do today is register and activate an account, and you can start trading immediately. It is advisable to do your due diligence and get acquainted with your trading platform as well as good trading principles to avoid getting burnt in trades.

Green Investors Can Focus on Forex

Forex can be a great market for sustainable investors. You just need to know where you are putting your money. Go long with currencies in countries known for sustainability and short currencies that have a poor environmental track record.


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