It’s no secret that 2021 is full of potential for forex traders. With just one quarter down and three to go, the year is turning out to be one that could begin a golden age for anyone interested in foreign exchange. Atypical volatility of leading national currencies and political uncertainty in developing nations are but two of many examples of situations in which FX enthusiasts tend to thrive. What else is causing this year, as opposed to recent ones, to be full of so many opportunities and risks? Leading the list is the fact that most of the emerging markets are attracting investors from everywhere as they tighten fiscal policies at home and put their local economies back together.

Additionally, as the digital age marches on, it’s easier than ever for casual, part-time, full-time, and professional traders to work from home, for as many or as few hours per week as they wish. And, it no longer takes a hefty bank account to get involved in the action. Those with modest means can trade forex on a regular basis as long as they protect their capital and ease into the process. Other factors making 2021 a good one for foreign exchange participants is the uncertainty amid a worldwide recovery from COVID, whip-sawing inflation rates among developed nations, a surging commodities situation, and more. Here’s a short look at some of the key pieces of the puzzle that explain why now is probably one of the best times in recent history to get active in forex.

Anyone Can Take Part

Nowadays, anyone with a working computer and a modest amount of capital can take part in the exciting world of foreign-exchange buying and selling. It’s easy to open an account with any Canadian forex broker or brokers based elsewhere. The good news is that not only is the process quick and account setup a hassle-free task, but you don’t need deep pockets to get started.

Many brokerages offer low or no account minimums, and trades often require no more than a few dollars. This ease of doing business is one of the reasons so many people got involved in forex during the recent pandemic lockdown. Not only did they realize how fun and simple it is to trade international currencies, but they discovered that it can be a smart way to earn a few extra dollars of income by devoting just a few hours each week to the activity.

Emerging Markets Are Hot

Mexico, Russia, Brazil, and a dozen or so other emerging markets are showing signs of staying ahead of the curve when it comes to strengthening their currencies. Unlike the U.S., which is apparently in the grips of an inflationary wave largely due to the Fed’s easy money policies, emerging markets nations are mostly beginning to tighten up their lending in order to rein in the threat of inflation. Why is this important for FX trading practitioners?


Inflation is one of the core components of a currency’s weakness, relative to other nations. For instance, if the U.S. spends the rest of 2021 living with an eight percent inflation rate, most any nation that has a lower level than eight percent will enjoy a boost to their currency’s strength against the dollar. Of course, there are dozens of other factors involved, but general price level increases (inflationary pressures) are key players in forex scenarios.

COVID Is Still a Factor

The COVID pandemic remains a significant factor for a number of the world’s key economies. Some have begun to rebound but others are experiencing a resurgence of variant viruses that could cause further stagnation in their financial markets.

Watch the Commodities

Another reason 2021 is shaping up to be a great year for FX can be summed up in one word: commodities. After 15 or more months of pent-up demand during the global lockdown (induced by COVID pandemic), nearly every major economic power is now starting to see increased demand for all varieties of commodities. Regardless of the many reasons, the year is already seeing surges in commodity prices across the board, which is very good news for anyone who takes part in buying and selling.

That’s because a number of developed nations are sitting on vast stores of goods that are likely to increase in value a great deal. Following commodities markets, and particularly monitoring which nations decide to profit from selling off inventories, could mean gaining keen insight into a specific currency’s strength. Oil, natural gas, coal, and copper are just four that are on most traders’ list of charts to watch for the rest of the year.

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